10 Stocks Losing Their Bite Before Thanksgiving

2. Zscaler, Inc. (NASDAQ:ZS)

Zscaler snapped two straight days of gains on Wednesday, declining 13.03 percent to close at $251.97 apiece as investors appeared to have priced in a strong earnings performance for the first quarter of fiscal year 2026 and resorted to profit-taking ahead of the Thanksgiving holiday.

In an updated report, Zscaler, Inc. (NASDAQ:ZS) said it narrowed its net loss by 3.7 percent to $11.6 million from $12.05 million in the same period last year. Revenues jumped by 25 percent to $788 million from $627.9 million year-on-year.

Looking ahead, Zscaler, Inc. (NASDAQ:ZS) expects the full fiscal year to generate revenues of $3.282 billion to $3.301 billion, as well as annual recurring revenues between $3.698 billion and $3.718 billion.

It also targets non-GAAP operating income of $732 million to $740 million, and earnings per share (EPS) of $3.78 to $3.82.

For the second quarter, revenues are expected to end at $797 million to $799 million, while non-GAAP income from operations is targeted at $172 million to $174 million. EPS is projected at $0.89 to $0.90.

“Our outstanding Q1 results demonstrate the strong demand we are experiencing for our Zero Trust and AI Security platform. With over $3.2 billion in Annual Recurring Revenue, growing over 25 percent year-over-year, and Rule-of-78 performance, I’m very pleased to share that an increasing number of customers are relying on our platform for better security, lower operational costs, and reduced IT complexity,” said Zscaler, Inc. (NASDAQ:ZS) Chairman and CEO Jay Chaudhry.

“Zero Trust security is the linchpin for AI-Security, and Zscaler pioneered Zero Trust security with our cloud-native switchboard architecture. By integrating the recently acquired SPLX technology with our comprehensive AI Security offerings, we are expanding our best-in-class AI Security solutions to solve emerging security challenges,” he noted.