Zscaler Stock Plunges Over 30% on Weak Guidance and Sales Shake-Up
Zscaler (ZS) shares crashed over 30% on May 27, 2026, after the cybersecurity firm reported fiscal Q3 earnings that beat analyst estimates—$1.08 EPS on $850.48 million revenue—but issued disappointing Q4 revenue guidance of $875–$878 million, below consensus. The selloff was amplified by the loss of two sales leaders, rising infrastructure costs, and broader AI-driven market fears about software sector disruption. Despite raising full-year guidance slightly, the stock’s record decline reflects investor anxiety over decelerating growth.
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Zscaler Stock Plummets 18% Despite Q3 Earnings Beat on Weak Growth Outlook
Zscaler (NASDAQ: ZS) stock crashed 18.3% this week after reporting fiscal Q3 2026 results that beat analyst estimates but issued a disappointing growth forecast. The cybersecurity company posted non-GAAP earnings of $1.08 per share on revenue of $850.48 million, exceeding expectations by $0.07 and $14.82 million respectively. Revenue grew 25.4% year-over-year. Management raised full-year fiscal 2026 ARR guidance to $3.74-$3.749 billion and revenue to $3.3295-$3.3325 billion, implying ~24% growth. However, the company projected fiscal 2027 ARR and revenue growth of only 16-17%, signaling significant deceleration. The stock is now down approximately 49% over the past year. The S&P 500 and Nasdaq Composite rose 1.8% and 2.6% respectively during the same period.
Yahoo FinanceZscaler Stock Plunges on Weak Guidance Amid AI-Driven Market Fears
Zscaler (ZS) shares plunged over 31.5% on May 27, 2026, marking one of the worst single-day declines in the company's history, after issuing weak guidance that failed to meet Wall Street expectations. Despite revenue and profit exceeding analyst estimates, investors were spooked by cautious forward-looking statements, the loss of two sales leaders, and rising infrastructure costs. The company warned that memory shortages, higher prices, and climbing infrastructure costs would increase capital expenditures by 200 basis points in FY2027. The selloff reflects broader anxiety in the software sector, where rapid advances in artificial intelligence are prompting companies to consider building in-house tools instead of purchasing services from vendors like Zscaler. Zscaler, a cloud-native cybersecurity firm based in San Jose, California, specializes in Zero Trust architecture and protects users, internet traffic, and private applications. The stock's decline underscores investor concerns about AI disrupting traditional software business models.
Yahoo FinanceZscaler Stock Plunges Over 31% on Disappointing Revenue Forecast
Shares of Zscaler, a cybersecurity company, experienced a record one-day decline of more than 31% after releasing a downbeat revenue outlook that surprised investors. The sharp drop reflects market disappointment with the company's future revenue projections, marking a significant negative event for the firm's stock performance.
MarketWatch.com - Top StoriesZscaler Stock Plunges 30% Despite Earnings Beat on Weak Guidance
Zscaler (NASDAQ: ZS) stock crashed over 30% on May 27, 2026, following the company's fiscal Q3 2026 earnings report. While Zscaler reported non-GAAP earnings per share of $1.08 on revenue of $850.48 million, beating analyst estimates of $1.01 EPS and $835.66 million revenue, the market reacted negatively to the company's Q4 guidance. Zscaler forecast Q4 revenue between $875 million and $878 million, suggesting approximately 22% year-over-year growth, which fell short of the average analyst estimate of $878.66 million. The company did narrowly raise its full-year sales target to between $3.3295 billion and $3.3225 billion. Revenue grew 25.4% year over year, with annual recurring revenue reaching $3.525 billion. Free cash flow increased 14% to $136 million. The article suggests the market may be overreacting to the guidance shortfall.
Yahoo FinanceZscaler Stock Plunges 30% Despite Q3 Earnings Beat on Weak Guidance
Zscaler (NASDAQ: ZS) stock crashed 30.7% on May 27, 2026, following the company's fiscal Q3 2026 earnings report. While Zscaler reported non-GAAP earnings per share of $1.08 on revenue of $850.48 million, beating analyst estimates of $1.01 EPS and $835.66 million revenue, investors focused on weaker-than-expected Q4 guidance. The company forecast Q4 revenue between $875 million and $878 million, below the consensus estimate of $878.66 million, implying approximately 22% year-over-year growth. Despite this, Zscaler raised its full-year revenue guidance slightly to between $3.3225 billion and $3.3295 billion. The article notes the market may be overreacting given the Q3 beat partially offset the Q4 guidance shortfall.
Yahoo FinanceZscaler Plunges on Weak Guidance Amid Sales Shake-Up
Zscaler (ZS) stock plunged on Wednesday after the cybersecurity firm reported fiscal third-quarter earnings and revenue that exceeded analyst estimates, but issued revenue guidance that fell short of expectations. The company reported adjusted earnings of $1.08 per share, up 28% year-over-year, and revenue of $850.5 million, a 25% increase. The disappointing forward guidance, coupled with a sales shake-up, triggered a sharp sell-off in the stock. The results were released after the market close on Tuesday, leading to the Wednesday decline. The article is from Investor's Business Daily via Yahoo Finance.
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