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Zscaler’s Latest Earnings Boost Stock, Surpassing Analysts’ Predictions

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Written by Timothy Sykes
Updated 5/30/2025, 11:33 am ET 5/30/2025, 11:33 am ET | 5 min 5 min read

Zscaler Inc. stocks have been trading up by 8.89 percent, driven by positive market trends and investor optimism.

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Live Update At 11:32:49 EST: On Friday, May 30, 2025 Zscaler Inc. stock [NASDAQ: ZS] is trending up by 8.89%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

The fiscal Q3 results for Zscaler have been a matter of celebration among investors and analysts alike. The company reported non-GAAP earnings per share of $0.84, outshining analyst expectations of $0.76. Revenue figures also painted a positive picture, climbing to $678M from $553.2M a year prior and topping the forecast of $666.5M. These unexpected upsurges come amid a period where many were uncertain due to the rising short interest and recent stock performance.

In addition to the stellar earnings report, Zscaler has opted to provide optimistic guidance for the upcoming quarters. They anticipate Q4 earnings per share to be between $0.79 and $0.80, with revenue forecasts ranging from $705M to $707M, slightly ahead of analysts’ estimates. This trajectory marks a definitive sign of robust fiscal health and strategic foresight.

Highlighting recent strategic moves, Zscaler announced the acquisition of Red Canary, a decision that strengthens their Security Operations Center capabilities significantly. By blending Red Canary’s innovative AI-driven workflows with their own resources, Zscaler is poised to offer unparalleled security solutions. Alongside, Kevin Rubin joins as the new Chief Financial Officer, bringing invaluable expertise to propel Zscaler’s growth further.

Impacts of Recent News

Reshaping Leadership Roles:

The transition in Zscaler’s executive team, specifically the appointment of Kevin Rubin as CFO, is seen as a crucial step for the company’s strategic direction. Mr. Rubin, who carries an impressive portfolio from his time at BetterUp and Alteryx, is expected to bring robust financial strategies and facilitate Zscaler’s expansion ambitions seamlessly. His wealth of experience in driving growth and overseeing IPOs is considered a valuable asset during Zscaler’s evolving phase. This appointment could be a pivotal driving force for attracting new investors and maintaining a solid trajectory in the stock market.

Acquisition and Market Position:

The acquisition of Red Canary is more than just an expansion of capabilities; it’s a strategic move to solidify Zscaler’s stance as a leader in cloud security. This merger integrates AI innovations with human expertise, creating a unified and robust Security Operations Center. The synergetic endeavor is anticipated to cater to growing security needs across sectors, potentially opening new market segments. As a result, investors have expressed increasing confidence in Zscaler’s ability to maintain its competitive edge.

Investor Sentiments and Market Reactions:

Zscaler’s announcement to engage actively in upcoming investor conferences signals a positive outreach strategy aimed at enhancing visibility and building investor confidence. Such involvement often augments a company’s market image and aids stock performance noticeably. Furthermore, the firm receiving recognition in the Gartner Magic Quadrant is a testament to its durable capability and innovation spirit, uplifting investor morale.

Such multiple upbeat developments are likely to reinforce investor attractiveness towards Zscaler, solidifying them as a forward-thinking, resilient entity in a highly competitive tech landscape. Many anticipate a robust continuation of their market prowess as they delve deeper into innovative security solutions and strategic expansions.

More Breaking News

Conclusion

Zscaler has outlined a promising path ahead, marked by impressive financial achievements, strategic acquisitions, and a shift in executive leadership promising fresh momentum. The financial landscape reflects a buoyant outlook, reinforced by strategic foresight and operational advancements. As Zscaler continues to push the boundaries of cloud security, with heightened trader interest and market innovation, it remains a focal point for both potential traders and industry analysts.

Their recent upward performance has brought significant attention, and as they continue to roll out strategic initiatives aimed at augmenting their market position, the future certainly looks promising. As millionaire penny stock trader and teacher Tim Sykes says, “Embrace the journey, the ups and downs; each mistake is a lesson to improve your strategy.” Despite being in a competitive environment, Zscaler stands tall, highlighting resilience and an innovative spirit. Traders and stakeholders alike can expect more sparks from Zscaler in the foreseeable future, instilling confidence across various facets of its operations and market presence.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Tim Sykes

Head Writer at TimothySykes.com, Lead Mentor at the Trading Challenge
In his 20-plus years of trading, Tim has made $7.9 million. In his 15-plus years of teaching, Tim’s Trading Challenge has produced over 30 millionaire students. His philosophy emphasizes small gains and cutting losses quickly.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”