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insidermonkey.comSEP 42 min read$ZS

There Are A Lot Of Zscaler Inc. (NASDAQ:ZS) Shorts, Says Jim Cramer

Zscaler Inc. (ZS) reported Q4 revenue of $898M, up 25% YoY, and non-GAAP EPS of $1.19, beating estimates. ARR grew 35% to $3.77B, with 17% net new ARR growth excluding acquisitions. FY27 guidance suggests slower growth (16.6-17.5%). Jim Cramer noted high short interest (5.9% of float).

Original reporting
insidermonkey.com
Published Sep 4, 2026, 11:30 PM UTC
Analysis
alphai AI DeskAI-generated
Added to alphai Sep 4, 2026, 11:33 PM UTC. Informational, not investment advice.
How this was made
alphai summarizes source reporting and applies a structured AI analysis for relevance, timing, sentiment and ticker impact. Always verify material claims with the original publisher.
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There Are A Lot Of Zscaler Inc. (NASDAQ:ZS) Shorts, Says Jim Cramer — source image
Source · insidermonkey.com
Decision brief

The 30-second read

$ZSBullishHigh
01

Why it matters

Earnings beat and ARR growth provide bullish catalysts, while guidance suggests moderated growth, creating a mixed outlook.

02

Market read

First report of Zscaler's earnings and guidance, material for traders targeting cybersecurity stocks.

03

What to watch

Short interest at 5.9% may attract short-covering rallies; AI initiatives' cost base could affect margins.

Relevance 8/10Novelty 8/10Timing: pre-market today

Background

Zscaler's Q4 earnings and FY27 outlook were released, with commentary from CEO Jay Chaudhry on AI security bookings.

Company-level read

Ticker impact

$ZSBullishHigh confidence
Context

Zscaler reported Q4 revenue of $898M and FY27 guidance of $3.91B, beating estimates and providing new guidance.

Expected impact

Potential short-term rally on beat, but caution on guidance may cap upside.

Evidence & confidence

Beat on revenue and EPS, plus ARR acceleration, typically drive buying; guidance slowdown may temper enthusiasm.

Market effects

Sector

Highlights strength in cybersecurity sector, may lift peers like Palo Alto Networks and CrowdStrike.

Regional

U.S. tech market may see modest lift in cybersecurity stocks.

Global

Reinforces global demand for zero-trust solutions, supporting broader tech sentiment.

Counterpoint

What could challenge this read

Guidance slowdown and high R&D spend could pressure valuation despite beat.

Key entities

  • company
    Zscaler Inc.

    Cybersecurity firm reporting earnings.

  • executive
    Jay Chaudhry

    CEO of Zscaler commenting on AI security bookings.

Read at source← All news

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