EL7.AI
StocksMedium•26 May 2026•
1 min read

US Tech Earnings Surge on AI Demand and Cloud Security Strength

Key Facts

1Zscaler reported stronger-than-expected fiscal third-quarter results, driven by growth in annual recurring revenue and demand for its zero-trust platform.
2Semtech achieved record quarterly revenue in its fiscal first quarter, led by strength in data center and LoRa businesses.
3Digital Turbine's Q4 results exceeded expectations, supported by acceleration in its app growth platform and AI integration.

As enterprises accelerate their digital transformation, the latest round of US tech earnings reveals a sector benefiting significantly from structural shifts in IT spending. Zscaler reported robust fiscal third-quarter results driven by its zero-trust security platform and recurring revenue growth, while Semtech reached record revenue levels fueled by its data center division. Additionally, Digital Turbine outperformed expectations as its app growth platform gained momentum through AI integration.

This strength mirrors broader industry trends where cloud security firms are capturing larger portions of corporate budgets; for instance, peer firm CrowdStrike recently posted a 33% year-over-year revenue increase according to its latest earnings filing. Semtech’s record data center performance also aligns with the massive infrastructure build-out seen in the semiconductor space, as market data indicates that AI-related hardware remains a primary driver of capital expenditure for hyperscalers.

Regarding current valuations, ZS closed at $192.40 and SMTC at $44.15 (close May 26, 2026). Traders should look ahead to the upcoming FOMC Minutes for signals on interest rate trajectories which impact tech valuations, as well as Manufacturing PMI data from major economies in the economic calendar to gauge the health of global industrial demand.