Why Zscaler Stock Is Crashing Today

Zscaler (NASDAQ: ZS) banal is getting crushed connected Wednesday pursuing the company's latest quarterly report. The cybersecurity company's stock terms was down 30.7% arsenic of 10:40 a.m. ET.

After yesterday's marketplace close, Zscaler published results for the 3rd 4th of its 2026 fiscal twelvemonth -- which ended April 30. While the institution reported income and net that bushed Wall Street's targets, the banal is inactive getting deed with a large pullback.

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Zscaler's fiscal Q3 results really looked beauteous beardown

Zscaler posted non-GAAP (adjusted) net per stock of $1.08 connected income of $850.48 cardinal successful fiscal Q3. Meanwhile, the mean Wall Street expert estimation had targeted per-share net of $1.01 connected income of $835.66 million.

Zscaler grew its gross 25.4% twelvemonth implicit twelvemonth successful the quarter, and the concern closed retired the play with yearly recurring gross of $3.525 cardinal -- besides up astir 25% annually. Free currency travel grew 14% twelvemonth implicit twelvemonth to deed $136 million.

Zscaler's guidance wasn't bully capable for investors

Along with its fiscal Q3 report, Zscaler issued guidance for income successful the existent 4th to travel successful betwixt $875 cardinal and $878 cardinal -- suggesting year-over-year maturation of astir 22%. For comparison, the mean expert estimation had targeted gross of $878.66 cardinal successful the quarter.

While the company's Q4 guidance came successful beneath Wall Street's expectations, Zscaler really narrowly raised its full-year income people to betwixt $3.3295 cardinal and $3.3225 cardinal -- up from erstwhile guidance for income betwixt $3.309 cardinal and $3.322 billion. With the company's fiscal Q3 income bushed exceeding the shortfall connected Q4 income guidance, it's imaginable that the marketplace is overreacting to Zscaler's caller quarterly study and outlook update.

Should you bargain banal successful Zscaler close now?

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