Zscaler Jumps 6% on Reaffirmed Revenue Outlook and IBM Security Pact; Palo Alto and CrowdStrike Gain 4%
Zscaler Jumps 6% on Reaffirmed Revenue Outlook and IBM Security Pact; Palo Alto and CrowdStrike Gain 4%
David MoadelFri, October 9, 2026 at 6:02 PM UTC
0
Shutterstock (Shutterstock)Quick Read -
Zscaler surged 6% after reaffirming full-year revenue guidance in a range of $3.91 billion to $3.94 billion, easing fears that enterprise security spending is slowing.
Palo Alto climbed 4% and CrowdStrike gained 4%, with the cybersecurity ETF CIBR rising 3% versus the S&P 500's 0.5% gain.
Zscaler's IBM and Red Hat collaboration targets the dangerous gap between a vulnerability's public disclosure and its patch release.
Just released. Our analysts combed the entire stock market and named the ten best stocks to buy right now, and Palo Alto Networks didn't make the cut. Enter your email to see the names that beat PANW. The report is free. Enter your email and see if any of your stocks made the cut.
A reaffirmed revenue outlook and a fresh security partnership have pushed cybersecurity to the front of the market, and the group's leader is setting the pace. Zscaler (NASDAQ:ZS) shares are up 6% to $230.74, heading a rally that's lifting the sector's largest platform vendors along with it.
Meanwhile, Palo Alto Networks (NASDAQ:PANW) stock is up 4% to $415.78, trailing the gain in Zscaler stock while still posting a strong advance for a company of its scale. Also, CrowdStrike Holdings (NASDAQ:CRWD) shares are up 4% to $272.77, another solid climb that sits behind the leader's.
Broader fund readings confirm that the strength runs well beyond three tickers. The First Trust NASDAQ Cybersecurity ETF (NASDAQ:CIBR) is up 3%, a gain spread across the wider security basket. That compares favorably to the SPDR S&P 500 ETF Trust, which is up 0.5%, leaving cybersecurity far ahead of the broad market.
Reaffirmed Outlook and IBM Pact Lift Zscaler
Free Report, Just Released
Why Didn't PANW Make The Top 10 List?
24/7 Wall St has helped investors make money for over two decades, and our top analysts just finished ranking the definitive Top 10 Stocks To Buy Now. Not the ten biggest companies. Not the ten everyone is arguing about. The ten best stocks to buy right now.
And PANW didn't make the cut!
The report is free, and you can see why we think each stock is a top investment today.
Enter Your Email and See the Ten →
Advertisement
ZS Price Target — 24/7 Wall St.
Zscaler reaffirmed its full-year revenue outlook earlier this week, guiding to $3.91 billion to $3.94 billion. Confirming that range eases a worry that has hung over the whole group, namely that enterprise security spending was beginning to slow, a concern that would hit every vendor in the space. For a company holding its guidance, a steady forecast carries more weight than a routine update typically would.
Zscaler made an announcement alongside the outlook. It announced a collaboration with IBM (NYSE:IBM) and Red Hat aimed at protecting private applications during the window between the public disclosure of a software vulnerability and the arrival of a patch. That gap is the period when attackers move fastest, which makes it one of the most exposed moments in any enterprise's security program, and both items landed earlier in the week, so the rally reflects a continued response to that news.
With Zscaler stock at the front of the rally, Zscaler's guidance stands as the cleanest evidence available on where security budgets are heading. The cybersecurity fund's 3% gain, set against the S&P 500 fund's 0.5% rise, supports that interpretation. A confirmed range from a pure-play zero-trust vendor offers a clear look at whether enterprises are still putting money to upgrading their defenses.
What to Watch Next
Zscaler's bull case is that confirming guidance removes the fear that security spending was slowing. Supporters can also point to the vulnerability window as a problem enterprises pay to solve, which gives the IBM and Red Hat work a clear commercial purpose. On that view, the steady outlook and the new collaboration point in the same direction, toward durable demand for zero-trust security.
However, the bear case deserves equal attention, and it centers on what a repeated forecast can't deliver, since reaffirming an existing outlook adds no new growth and Zscaler shares have already rallied sharply in the session. That leaves little room for error if the next quarter disappoints.
Shareholders can watch for whether the IBM and Red Hat collaboration turns into customer wins that support Zscaler's reaffirmed range. Early evidence of demand for the vulnerability-window protection could help settle the debate between those two camps. Position sizes should stay measured, since a stock that has climbed this far can reverse quickly on any stumble.
Got $1,000? Before You Buy PANW, Read This
If you have cash sitting in your account right now, give this two minutes. After more than two decades of helping investors beat the market, our top analysts at 24/7 Wall St. put together a definitive report on the Top 10 Stocks To Buy Today. And PANW wasn't one of them.
They combed the entire market. It's not 10 ideas, not 10 stocks everyone is talking about, it's what their research points to as the 10 best stocks to buy right now, and it's free. Read more here and see which stocks made the list -->>
Contact editorial@247wallst.com for any questions or corrections.
Source: “AOL Money”
