Breakfast News: ZS Sinks Despite Beat

Breakfast News: ZS Sinks Despite Beat

November 26, 2025

With markets closed Thursday for Thanksgiving, Breakfast News will be back in your inbox on Friday, 28 November.

1. Tuesday's Key Stock Advisor Earnings

Cloud security specialist Zscaler (ZS +3.35%) looks set to open around 8% down this morning, despite beating analyst expectations with a 26% rise in Q1 revenue year over year. Continuing operating losses, of $36.4 million in the quarter, clearly disappointed traders.

• Watch for revenue between $7.15 billion and $7.17 billion: Autodesk (ADSK +1.58%) raised its full-year guidance after the design software developer posted an 18% rise in Q3 – as CFO Janesh Moorjan assured us "The macroeconomic environment has been broadly stable though uncertainty remains elevated." The stock gained 7% pre-market.
• Q4 forecasts only slightly above estimates raise fears of softening demand: Enterprise software provider Workday (WDAY +3.11%) dipped 5.5% in early trading, though third-quarter subscription revenue matched Wall Street estimates – up 14.6% to $2.24 billion. CFO Zane Rowe told us to "expect fiscal 2026 subscription revenue of $8.83 billion."

2. The 'Best of the Rest' From Yesterday

Urban Outfitters (URBN +9.76%) soared 19% in pre-market trading today, as the retailer posted top- and bottom-line beats in Q3 after yesterday's close. Revenue gained 12.3% year over year, with same-store sales up 8%. That's four quarters in a row of new sales records.

• Superscore of 73 on our Rule Breakers Primary database: RB recommendation Nutanix (NTNX +0.77%) slumped 17% overnight, after downgrading the full-year revenue outlook for its cloud software business to between $2.82 billion and $2.86 billion. Annual recurring revenue in Q1 grew 18% from a year ago to $2.28 billion, though higher operating expenses led to a margin decline.
• AI driving tech expectations: Dell (DELL 1.02%) and HP (HPQ 0.25%) saw mixed reactions to their latest earnings. Dell gained 3% pre-market on the back of record AI infrastructure growth and upgraded FY guidance. HP fell 5% after revealing potential job losses of 4,000 to 6,000, as CEO Enrique Lores told Yahoo Finance "There are many things ... that in the future AI will do better and will do faster."

3. Other News You Might Have Missed

Chipotle (CMG +6.89%) has appointed Josh Weinstein, previously CEO at Carnival (CCL +3.88%), to its board of directors – and the stock popped 7% after the announcement. Fool analyst Jason Moser recently noted a partnership with Zipline "to offer select customers in the Dallas area the option to have their Chipotle delivered via drone," adding "It will be interesting to see how this initiative progresses."

• "The Tesla Robotaxi fleet in Austin should roughly double next month": Tesla (TSLA +0.42%) CEO Elon Musk announced the taxi expansion following from June's rollout, with safety monitors still mandated in the driverless vehicles. Actual taxi numbers are not clear.
• "An absolutely exploding economy and democracy": Marriott (MAR +2.75%) chief commercial officer John Toomey told Business Insider the hotel chain plans to double its business in India, aiming for more than 150 new hotels in the country.

4. Next Up: Farming Insights From Deere

Agricultural machinery maker Deere (DE +2.24%) reported Q4 earnings this morning of $3.93 per share – ahead of the $3.85 consensus, but behind the $4.55 in the same quarter last year – as profit dipped under the weight of weaker margins. The stock dropped 5% in early trading.

• Considered a key barometer for farm incomes and commodity prices: The company – which earns close to 50% of its revenue in the U.S. – has been hit by a combination of weaker crop prices and tariff costs.
• Happy holiday season: With markets closed tomorrow and only opening half a day Friday, all at the Breakfast News team wish you a happy and relaxing Thanksgiving!

5. Food for Thought

Just as Thanksgiving celebrates the rewards of a patient harvest, successful investors know that wealth grows over time, not overnight.