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Zscaler shares plunge 31% after lowering 2027 growth forecast despite Q3 beat

Company Fundamentals
27 May 2026
Proactive Investors
View Source
Bearish
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Zscaler's shares dropped over 31% following a weaker-than-expected revenue forecast for fiscal 2027, with projected growth of 16-17%, down from prior estimates of 19-20%. Despite beating Q3 earnings and revenue estimates, the company signaled a slowdown due to sales leadership changes and cautious new customer growth. Organic annual recurring revenue grew 21% in Q3, but the outlook reflects a more conservative growth trajectory. The company plans to stabilize through expanded partnerships and deeper enterprise relationships.

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