Zscaler

ZS

Market cap $22.6B

The cybersecurity company disappointed investors in its most recent update.

Zscaler, Inc. plunged 32% after Q3 earnings, despite beating consensus on both revenue and EPS, due to softer-than-expected revenue growth guidance for 2027 and higher AI CapEx. ZS posted robust Q3 results: $850.5M revenue (+25% Y/Y), 81% gross margin, $196M operating income (+33% Y/Y), and $136M free cash flow (+14% Y/Y). The ZS stock selloff was amplified by management guiding for a lower revenue growth rate of 16-17% in FY 2027 vs. market expectations of 19-20% growth.

NEW YORK--(BUSINESS WIRE)---- $ZS #ClassAction--Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Zscaler, Inc. (“Zscaler” or the “Company”) (NASDAQ: ZS). Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com. On May 27, 2026, the Company issued weaker-than-expected guid.

New York, New York--(Newsfile Corp. - May 28, 2026) - Levi & Korsinsky notifies investors that it has commenced an investigation into Zscaler, Inc. ("Zscaler, Inc.") (NASDAQ: ZS) concerning potential violations of the federal securities laws. Zscaler reported Q3 revenue of $850 million, up 25% year-over-year, and ARR of $3.5 billion.

Zscaler's stock plummeted on Wednesday after the company's guidance fell short of expectations. The company didn't miss by much, but with a high valuation, it may have been ripe for a correction.

Zscaler CEO Jay Chaudhry discusses the company's recent numbers, the impact of Mythos on the cybersecurity industry and more on ‘The Claman Countdown.' #fox #media #breakingnews #us #usa #new #news #breaking #foxbusiness #theclamancountdown #lizclaman #zscaler #jaychaudhry #cybersecurity #cybersecuritynews #technology #ai #artificialintelligence #mythos #technews #businessnews #datasecurity #cloudsecurity #ceointerview #wallstreet #innovation

MILWAUKEE, May 27, 2026 /PRNewswire/ -- Ademi LLP is investigating possible securities fraud claims against Zscaler (NASDAQ: ZS). The investigation results from inaccurate statements Zscaler may have made regarding its financial statements, business operations and prospects.

Zscaler stock fell more than 30% after the company issued Q4 guidance below Wall Street expectations and disclosed senior sales leadership departures. NEW YORK, May 27, 2026 /PRNewswire/ -- Zscaler (NASDAQ: ZS) shares dropped approximately 15% in after-hours trading on May 26, 2026, after the company paired strong Q3 fiscal 2026 results with Q4 revenue and cash-flow-margin guidance that fell short of consensus estimates.

Zscaler's stock plummeted more than 30% on Wednesday for its worst day ever after reporting fiscal third-quarter earnings. The company lost two sales leaders, and finance chief Kevin Rubin said Zscaler is taking a "prudent approach" to guidance amid the transitions.

Zscaler has been tapped as a favorite cybersecurity stock by some analysts, but investor optimism seems to have unraveled Wednesday after the company's outlook for revenue in the current quarter fell short of expectations.