Zscaler's Q1 Beat, SASE Growth Fuels Stock Dip
Update: 2025-11-25
Description
Zscalers robust quarterly results, surpassing Wall Streets expectations, are attributed to high demand for cloud and AI security solutions. The companys flexible purchasing options have led to larger, multi-year contracts with businesses seeking digital threat protection. Zscaler raised its fiscal year 2026 adjusted earnings per share forecast, reflecting confidence in continued growth. Despite positive numbers, Zscalers stock dipped due to a smaller-than-expected revenue outlook increase, despite a first-quarter revenue beat and earnings per share exceeding estimates. The company operates in the SASE market, a growing sector combining networking and security, driven by cloud technology and AI adoption.
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