How will the reported fourth‑quarter revenue and earnings versus expectations impact Zscaler's short‑term price action?

Fundamental backdrop – Zscaler’s Q4‑2025 numbers came in ahead of consensus (revenue and EPS both topped the Street’s forecasts). The beat was reinforced by a “very strong” billings‑to‑revenue ratio and a healthier-than‑expected net‑retention rate, which signals continued subscription momentum in a market that is still hungry for zero‑trust solutions. In a sector where peers are mixed on growth, the upside surprise is likely to tilt short‑term sentiment decidedly bullish, especially given the modest 15‑point sentiment score that already skews positive.

Technical & price‑action outlook – The stock is sitting near its recent intraday high (~$148) with a clear, upward‑sloping 50‑day SMA and a bullish bullish‑flag formation on the 4‑hour chart. A post‑earnings breakout above the $150 resistance line would likely trigger algorithmic buying and trigger‑order flow, propelling the price 4‑6% in the next 2‑3 sessions. Traders could look to enter on a pull‑back to the breakout level (e.g., $149‑$150) with a stop just below the prior swing low around $143. If the beat is muted or guidance is softened, the stock could retest the $140–$142 support zone, where a short‑cover rally may occur but the downside risk would be limited to the $135‑$136 area (the 200‑day SMA). In either scenario, expect a spike in volume and implied‑volatility compression in the near‑term options chain, offering tight‑risk directional plays.