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Zscaler downgraded to sell after weak Q3 and slowing growth outlook for FY27

Analyst Insights
27 May 2026
Seeking Alpha
View Source
Bearish
pluang ai news

Zscaler reported a disappointing Q3 FY26 with organic revenue growth stagnant at 21%, and it lowered its FY27 growth guidance to 16-17%. The company is facing challenges winning new enterprise customers amid competitive pressures from integrated platforms and leadership departures, which are hurting its sales pipeline and growth momentum. These structural issues have led to a downgrade to "sell" and expectations for lower price targets as the company struggles to regain growth. Investors should watch for further updates on Zscaler's ability to address these headwinds.

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