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Zscaler beats Q3 earnings estimates but shares drop nearly 25% on cautious guidance.

Company Fundamentals
27 May 2026
Lekha Gupta
View Source
Neutral
pluang ai news

Zscaler reported strong third-quarter results with revenue of $850.48 million and adjusted earnings of $1.08 per share, both surpassing analyst expectations. Annual recurring revenue grew 25% to $3.5 billion, driven by demand for its Zero Trust platform and AI security products. Despite raising its full-year revenue and earnings guidance, shares fell nearly 25% due to concerns over recent sales leadership changes impacting near-term outlook. The company remains optimistic about 16-17% growth in ARR and revenue for fiscal 2027.

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