Zscaler’s 0.90% Stock Decline Juxtaposed with Record $1.55B Volume Surge to 43rd Market Rank

Zscaler (ZS) closed 0.90% lower on Sept. 2, 2025, despite a 272.94% surge in trading volume to $1.55 billion, ranking it 43rd in market activity. The stock’s performance followed the release of its Q4 and fiscal 2025 results, which highlighted 21% year-over-year revenue growth to $719.2 million and a 22% rise in Annual Recurring Revenue (ARR) to $3.015 billion. Non-GAAP net income reached $146.7 million, up from $115.8 million in the prior year, while deferred revenue grew 30% to $2.468 billion.

Key drivers included the acquisition of Red Canary to enhance AI-driven threat intelligence and the launch of AI Guardrails to secure public and private applications. The company also introduced Zscaler Cellular, a SIM-based Zero Trust solution for IoT/OT connectivity, and expanded its Zero Trust portfolio to address rising ransomware threats. Management emphasized robust demand for its AI security offerings, with calculated billings surging 32% to $1.202 billion, underscoring long-term contract strength.

Zscaler’s cash position strengthened, with $3.572 billion in cash and equivalents as of July 31, 2025, up $1.163 billion from the prior year. The firm issued $1.725 billion in convertible senior notes in July 2025 and repaid $1.15 billion in 2025 notes, reflecting strategic debt management. For fiscal 2026, Zscaler projected revenue of $3.265–$3.284 billion and non-GAAP net income per share of $3.64–$3.68, maintaining confidence in its growth trajectory despite a GAAP net loss of $17.6 million in Q4.

Zscaler’s stock closed at a 0.90% decline, with a trading volume of $1.55 billion on Sept. 2, 2025, representing a 272.94% increase compared to the prior day’s volume.