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Zscaler’s Stock is Soaring: What’s Behind the Surge?

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Written by Jack Kellogg Reviewed by Ellis Hobbs Fact-checked by Matt Monaco
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Zscaler Inc.’s stocks have been trading up by 9.18% boosted by positive market sentiment and strong earnings forecasts.

Highlighting the Latest Developments

  • Zscaler exceeded expectations for fiscal Q3, reporting non-GAAP earnings of $0.84 per share. This surpassed both the previous year’s $0.71 and Analysts’ forecast of $0.76. Revenue rose to $678M from the previous year’s $553.2M, beating projections of $666.5M.

  • The company forecasts Q4 earnings between $0.79 to $0.80 per share with revenues ranging from $705M to $707M, surpassing Analysts’ expectations. Full-year guidance has been elevated with expected revenues between $2.659 and $2.661B, up from the previously anticipated range, showcasing strong growth momentum.

  • Kevin Rubin has stepped in as the new CFO of Zscaler, succeeding Remo Canessa. With this leadership change, Zscaler aims to drive its next phase of growth. Rubin’s experience in steering financial strategies at renowned companies like Alteryx is seen as pivotal for Zscaler’s future.

  • In an assertive move, Zscaler has announced the acquisition of Red Canary to bolster its expertise and capabilities in Security Operations Centers. This acquisition is viewed as an effort to enhance Zscaler’s position in the cybersecurity landscape, leveraging AI for improved security solutions.

  • The company was recognized as a Leader in the 2025 Gartner Magic Quadrant for its prowess in Security Service Edge. Zscaler’s focus on ‘Zero Trust Everywhere’ with its comprehensive Security Services platform places it at the forefront of cybersecurity innovation.

Candlestick Chart

Live Update At 14:32:19 EST: On Friday, May 30, 2025 Zscaler Inc. stock [NASDAQ: ZS] is trending up by 9.18%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Zscaler’s Earnings and Financial Health Analysis

Trading in modern markets requires discipline and strategy, where a nuanced understanding is crucial for success. As millionaire penny stock trader and teacher Tim Sykes, says, “Cut losses quickly, let profits ride, and don’t overtrade.” This philosophy highlights the importance of managing risks wisely and knowing when to seize opportunities without getting carried away. Traders must remain vigilant and adaptive, as adhering to these principles can greatly increase the likelihood of long-term success in the fast-paced world of trading.

Zscaler’s recent financial performance paints a picture of growth and resilience. The Q3 earnings were robust, with revenue trails and the earnings per share surpassing prior records and Analysts’ expectations. This financial boon was attributed to strong operational performance and strategic forecasting. When examining the earnings report, one sees Zscaler’s considerable escalated deferred revenue and accelerated billing growth, both indicative of the company’s expanding influence in the security sector.

Analyzing the revenue trajectory, Zscaler has paved its path of consistent growth. From the data, revenue increased dramatically from the prior fiscal years, climbing steadily through innovative strategies and strong market positioning. The Q4 guidance reflects this positive momentum, with an optimistic outlook on both earnings per share and revenue forecasts. This bullish trend suggests not just transient growth but lays the groundwork for long-term elevation.

Despite a backdrop of challenging market conditions, Zscaler’s acquisition of Red Canary is likely one of the bold moves set to drive its next wave of security innovation. As AI and machine learning powers security operations, Zscaler’s portfolio likewise strengthens, capitalizing on its acquisition to magnify its cybersecurity service capabilities.

From its profitability metrics, despite the negative EBIT margin and operating profit margins, the company maintains a strong gross margin at 77.8%, signaling cost-effective production structures. However, the negative profit margins paint the picture of a growth-focused company heavily reinvesting in its infrastructure.

More Breaking News

Additional financial insights reveal dynamic cash flow changes, including a positive net change in cash reflecting effective financial management. As Zscaler directs proceeds from share offerings, it reinforces its asset base while favorably adjusting its equity ratios.

Impact of Recent News on Market Valuations

The impact of these developments stretches beyond the numbers. Zscaler’s strengthened earnings and heightened operational forecast have reverberated throughout its market evaluation. The stock’s reaction to financial announcements often aligns with the rough stair-step pattern observed in trading. On analysis of the trading data, Zscaler’s stock followed a consistent upward trail, closing at $274.15 from its recent price of $262.83.

Such price ascent reflects the optimism embedded in market expectations backed by solid financial performance and the strategic acquisition announcement. Analysts have picked up the cues, enhancing price targets and advocating for a prospective ‘buy’, with incremental upside anticipated.

The appointment of a seasoned CFO underscores a reinforced strategic vision, aligning operational performance with financial growth ambitions. Key ratios such as the price-to-sales and price-to-book multiples exhibit robust valuations in tandem with elevated sales performance.

Conclusion: Navigating the Future

As Zscaler continues its journey to leverage market conditions while intensifying its cybersecurity architect, its strategic plan comprises robust growth potential. In a challenging economy, its narrative remains rooted in operational execution and innovation. As millionaire penny stock trader and teacher Tim Sykes, says, “You must adapt to the market; the market will not adapt to you.” This principle is embodied in Zscaler’s approach, reflecting adaptable strategies underpinned by technological improvements and market immersion as key elements of its evolving success story. For traders, Zscaler represents a compelling opportunity—not devoid of risks—but one that wields the resilience and foresight to rise amidst cyber shifts. Shielding operations through strategic acquisition and leadership transition becomes Zscaler’s mantra as it elevates its vision for the future.

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.

Dive deeper into the world of trading with Timothy Sykes, renowned for his expertise in penny stocks. Explore his top picks and discover the strategies that have propelled him to success with these articles:

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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”