Tim Beyers

Both fully caffeinated, good weekends?

Half caffeinated is better than uncaffeinated.

Let's just say that.

All right.

Today, we'll be talking about fiscal Q1 2026 earnings from Zscaler and Q3 2026 earnings from Workday, tickers ZS and WDAY, and predicting which of these two will be the better performer over the next decade.

We'll also tackle some mindset questions and a potential new feature we're calling Mindset Monday.

We are going to ask for your feedback.

We want to know if you want more mindset content.

But we start with earnings, and let's quickly review what we saw last week starting with Zscaler.

We had some good numbers, and I want you both to react to these.

So Zscaler said they exceeded their expectations on both the top and bottom line.

They say they blew past what they call rule of 78.

They're just making stuff up here.

There's a rule of 40 number that is very common, which is growth compared to margins.

If the growth is materially above 40 over the margin, that's a good sign for the company.

They say, forget about 40, we're at 78.

I think that's a little nonsensical, but revenue did grow 26% year-over-year.

Annual recurring revenue was up 26% year-over-year.

Their backlog now is $3.2 billion in annual recurring revenue, $1 billion of that

are some very high-growth initiatives, including what they are calling AI security.