Zscaler Stock Jumps 4.7% After Snowflake Earnings Calm 'SaaSpocalypse' Fears

Shares of cloud security platform Zscaler (NASDAQ:ZS) jumped 4.7% in the afternoon session after Snowflake's impressive earnings results provided clearer evidence that the 'SaaSpocalypse' — a rolling selloff that had erased approximately $2 trillion from software market values since late 2025 on fears that AI would make subscription software obsolete — had been overstated for platforms sitting at the centre of AI workflows.

Potential Reasons

The main catalyst for Zscaler's rise was Snowflake's (SNOW) strong quarterly results, which demonstrated that demand for cloud data platforms remains robust, alleviating concerns that AI might render subscription software obsolete. As Zscaler offers cloud-based security subscriptions, any positive signal for the software sector boosts its stock.

Context

Prior to this gain, Zscaler's stock had fallen about 25% year-to-date, caught in the 'SaaSpocalypse' selloff that swept the software sector. However, Snowflake's earnings suggest that companies continue to invest in cloud infrastructure and AI, restoring confidence in firms like Zscaler.

Similar Moves in the Sector

Zscaler was not alone in the uptick; shares of Microsoft (MSFT), Oracle (ORCL), ServiceNow (NOW), and Palantir (PLTR) also saw modest gains, reflecting a broader improvement in investor sentiment toward software stocks.