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Today is Wednesday, May 27, 2026.
The Early Bird Index today is 89.24.
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What Went Wrong at Zscaler? 🤔
Strong financial earnings results should have boosted Zscaler’s $ZS ( ▲ 1.22% ) stock in after-hours trading on Tuesday. Instead, the cloud security company plunged 20.78%.
Financials: Zscaler reported earnings of $1.08 per share in the past quarter and revenue of $850.5 million. Both were better than expected.
Quote: “ARR grew 25%, or 21%, excluding the contribution from the Red Canary acquisition, and non-GAAP operating margin reached an all-time high of 23%.” - CFO Kevin Rubin.
Outlook: The issue with the results was the outlook. Zscaler expects revenue of $875 million to $878 million for the current quarter, which was lower than expected. The full-year free cash flow margin of 22.8% to 23.3% is also lower than the company’s prior projection due to capital expenditures.
Early Bird’s Nest Egg Gains: The future revenue did not look strong enough to justify the stock’s valuation, so investors treated it as a “good quarter, weak setup” reaction. Investors saw future revenue as the key signal for future growth, and the miss there overshadowed the beat on current-period results.
Final Thoughts: Zscaler’s stock was already down 16.31% this year.
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Notables
Notable Earnings Today: Salesforce (NYSE: CRM), Dick's Sporting Goods (NYSE: DKS), Marvell Technology (Nasdaq: MRVL), Snowflake (NYSE: SNOW), HP Inc. (NYSE: HPQ), Bath & Body Works (NYSE: BBWI), Synopsys (Nasdaq: SNPS), Abercrombie & Fitch (NYSE: ANF), Nutanix (Nasdaq: NTNX), Agilent (NYSE: A), HEICO (NYSE: HEI), Capri Holdings (NYSE: CPRI), Dycom (HYSE: DY), Everpure (NYSE: P), nCino (Nasdaq: NCNO), Bank of Montreal (NYSE: BMO), Braze (Nasdaq: BRZE), American Superconductor (Nasdaq: AMSC), Mediwound (Nasdaq; MDWD), Monro Muffler (Nasdaq: MNRO), PDD Holdings (Nasdaq: PDD), Phreesia (NYSE: PHR), Sound Point Meridian Capital (NYSE: SPMC).
Notable IPOs Today: Disciplined Growth Acquisition Corporation (NYSE: DGAC), Powerlaw Corp. Common Stock (Nasdaq: PWRL).
Notable Equity Crowdfunding Campaigns Ending Today: Blueberry (Republic), The Marketplace and Tacos by Lotería Grill (Honeycomb), Favela (Crowdcube).
Notable Economic Events Today: ADP Employment Change Weekly (8:15 a.m. ET), API Weekly Crude Oil Stock (4:30 p.m. ET).
Digital Turbine's Key Factors
Digital Turbine $APPS ( ▲ 5.71% ) surged 17.52% in after-hours trading on Tuesday after the ad-tech and mobile software company posted strong financial earnings results.
Financials: Digital Turbine reported earnings of 16 cents per share in the past quarter and revenue of $142.5 million. Both were better than expected.
Quote: “One of the key factors for our markedly improved performance has been our ability to more effectively utilize our unique first-party data in order to drive better results for our rapidly expanding global network of advertisers, publishers, carriers and OEMs.” - CEO Bill Stone.
Also: The company raised its full-year outlook. It expects revenue between $630 million and $650 million.
Final Thoughts: Digital Turbine’s stock is finally showing signs of life after starting 2026 with very little gain.
Hyperliquid Falls After Big Gains
The price of the popular blockchain Hyperliquid $HYPE ( ▲ 2.72% ) fell about 2% on Tuesday after recent gains, suggesting that investors were ready to sell some profits.
Final Thoughts: Hyperliquid is up 24% in the past week and 40% in the past 30 days.
Trends to Watch
Proxy Truce: Lululemon nears deal to settle proxy war with founder Chip Wilson (Reuters)
$1 Trillion Success Story: Micron’s stock reaches a major milestone as UBS slaps on an out-of-sight price target (MarketWatch)
Uh-Oh: CDC asks staff to volunteer to help with Ebola screenings at airports amid DRC outbreak (ABC News)
Auto-Bad: AutoZone stock has worst day in four years, despite retailer beating Wall Street estimates (CNBC)
Ethereum Goals: Tom Lee's BitMine Makes Biggest Ethereum Buy Yet in 2026 (Decrypt)
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The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations, and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.
