Zscaler Clinches Deal To Acquire Red Canary To Bolster Agentic AI-Driven Security Offerings: Retail Wary As Stock Trades At 3-Year High

The combined company will deliver a “unified, agentic Security Operations Center” that combines artificial intelligence-driven workflows with human expertise.
 Building with logo for ZScaler in the Silicon Valley, Santa Clara, California, January 3, 2021.
Building with logo for ZScaler in the Silicon Valley, Santa Clara, California, January 3, 2021. (Photo by Smith Collection/Gado/Getty Images)
Profile Image
Shanthi M·Stocktwits
Updated Jul 02, 2025 | 8:31 PM GMT-04
Share this article

Cybersecurity vendor Zscaler, Inc. (ZS) said on Tuesday it will acquire managed detection and response (MDR) company Red Canary to strengthen its security operations.

San Jose, California-based Zscaler said Red Canary has over a decade of expertise in security operations. It enables the customer base to investigate threats up to 10 times faster with near-perfect accuracy while also streamlining workflows through automated remediation.

The combined company will deliver a “unified, agentic Security Operations Center (SOC)” that combines artificial intelligence (AI)-driven workflows with human expertise. 

CEO Jay Chaudhry said, “The proposed acquisition of Red Canary is a natural expansion of our capabilities into managed detection and response and threat intelligence to accelerate our vision of AI-powered SOC of the future.”

“By integrating Red Canary with Zscaler, we will deliver to our customers the power of a fully integrated Zero Trust platform and AI-powered security operations.”

The deal terms were not disclosed, but Zscaler said the acquisition is subject to customary closing conditions, including regulatory approvals, and would close in Aug. 2025.

Denver-based Red Canary said in March that its enterprise new customer bookings increased 23% sequentially in the fourth quarter and annual recurring revenue (ARR) exceeded $140 million.

More details on the deal could be forthcoming when Zscaler reports its quarterly results Thursday after the market closes. 

According to the Finchat-compiled consensus, the company is expected to report adjusted earnings per share (EPS) of $0.76 and revenue of $667.09 million for the third quarter of the fiscal year 2025.

On Stocktwits, retail sentiment toward Zscaler stock was ‘neutral’ (44/100) by late Tuesday, and the message volume stayed ‘low.’

Screenshot 2025-05-28 at 2.48.14 AM.png
ZS sentiment and message volume as of 2:49 a.m. ET, May 28 | source: Stocktwits

A bearish watcher remains wary of the Zscaler stock as it traded at new 52-week highs. ‘Over pumped,’ they said. Some also expressed uneasiness following the negative reaction to Okta’s (OKTA) earnings.

On the other hand, a bullish user said the rally in Zscaler stock wouldn’t stop.

Zscaler stock fell 0.37% to $256.36 in Tuesday’s after-hours session, although it is up about 43% year-to-date.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Subscribe to The Litepaper
All Newsletters
Get the daily crypto email you’ll actually love to read. It's value-packed, data-driven, and seasoned with wit.

Read Next: Elon Musk Can’t Shake Lawsuit Over DOGE As Judge Flags ‘Unchecked’ Power

Read about our editorial guidelines and ethics policy

Advertisement. Remove ads.