Cybersecurity Stocks One Looks Promising Earnings - May 26

The Big Picture

Cybersecurity stocks are surging, and one name is drawing distinct trader attention ahead of its earnings report. CNBC reports trader Mike Khouw is long Zscaler into earnings after the close, a signal some market participants treat as momentum into a key catalyst.

For investors, that means short-term volatility could accelerate around the report, creating both opportunity and risk depending on your time horizon and strategy.

What's Happening

The headline development is straightforward: market interest in cybersecurity is rising, and a well-known options trader has taken a long position ahead of Zscaler's earnings. Here are the specific data points available from the reporting and additional context.

• 163% — Advanced Innergy Holdings reported an earnings surge of 163% year over year, included in the additional context and highlighting how earnings momentum can shift attention across sectors.
• 1 — One prominent trader, Mike Khouw, is publicly long Zscaler into earnings after the close, per CNBC.
• May 26, 2026 — The date of the coverage, which frames the current market move and timing around the earnings focus.
• 2026 — The year referenced in the reporting and context around sector activity and upcoming catalysts.

Those facts suggest two related dynamics: first, sector momentum is lifting interest in cybersecurity names; second, concentrated positioning ahead of earnings can amplify price moves when results or guidance arrive. Zscaler, the stock singled out by the trader, becomes a near-term focal point for traders and event-driven investors.

Why It Matters For Your Portfolio

Short-term traders often follow public positioning from high-profile market participants because it can indicate where liquidity and implied volatility may move. For longer-term investors, earnings still serve as a reset point for fundamentals and guidance.

Who should care: growth investors and event-driven traders will pay closest attention to $ZS around its report, while sector-focused funds and active managers may adjust weights if cybersecurity momentum sustains. Analysts and market commentators are already watching, which can increase headline-driven flows into the stock.

Risks To Consider

• Event Risk: Earnings reports can produce outsized moves in either direction, especially when public positioning is concentrated. A disappointing print or conservative guidance could trigger a sharp pullback.
• Volatility Risk: Publicly disclosed long positions into earnings often coincide with elevated options activity, which can widen spreads and increase implied volatility, making short-term entries more expensive.
• Sector Rotation: Cybersecurity momentum could fade if broader market leadership shifts, leaving individual names vulnerable to relative underperformance even if fundamentals remain solid.

What To Watch Next

Focus on the earnings report and immediate market reaction. Watch how guidance and subscription trends are described, since those items often drive post-earnings moves in security software names.

• Earnings release timing and the company’s commentary, including any updates to subscription growth or ARR dynamics.
• Options volume and implied volatility for $ZS before and after the report, which will signal how traders are positioned.
• Analyst notes and any revisions from Wall Street following the earnings print, which could influence flows into the sector.

The Bottom Line

• Market interest in cybersecurity is elevated, and public positioning into earnings is amplifying near-term risk and opportunity.
• Mike Khouw’s long position in Zscaler highlights trader conviction ahead of the company’s report, but it also raises the odds of a volatile reaction to the print.
• Investors should treat the earnings event as a catalyst, not a certainty; fundamentals and guidance will determine the medium-term trajectory.
• Consider monitoring implied volatility and liquidity conditions if you’re planning a near-term trade, and watch analyst commentary after the report for shifts in sentiment.
• Use objective triggers for action: results that materially change guidance or subscription trends, or clear shifts in analyst estimates, can justify repositioning your exposure.

FAQ

Q: Is Zscaler the only cybersecurity stock traders are watching?

A: No. The coverage notes Zscaler is a focal point because a trader went long into earnings, but broader sector momentum is driving interest across multiple cybersecurity names.

Q: What specific metric should I watch in the earnings report?

A: Investors typically watch subscription growth and guidance for recurring revenue, as well as commentary on enterprise demand and gross margin trends, since those factors drive the stock’s valuation trajectory.

Q: How should I manage risk around the earnings event?

A: Monitor implied volatility and position size, avoid oversized exposure into an earnings print, and consider waiting for the immediate market reaction and analyst revisions before making larger portfolio decisions.