Zscaler's stock dropped over 30% following its fiscal third-quarter earnings report, marking its worst trading day ever. Although the company beat earnings and revenue estimates, it issued cautious guidance for fiscal 2027, projecting annual recurring revenue growth below analyst expectations. The firm also faced leadership changes with the loss of two sales leaders and warned of increased capital expenditures due to rising costs. Investor concerns about AI disrupting software and cybersecurity business models have further pressured the stock, which has lost half its value over the past year. Despite challenges, Zscaler's CEO highlighted strong long-term opportunities in cybersecurity amid growing AI-driven threats.
Cybersecurity stocks surged after IBM CEO Arvind Krishna highlighted cyber threats as a top concern for customers in the company's preliminary Q2 results. Krishna noted that some major deals were delayed as businesses reconsidered spending due to evo...
Zscaler's stock dropped sharply by 31.5% on May 27, 2026, after the company issued weaker-than-expected guidance and revealed disruptions linked to sales leadership changes. This decline followed concerns about slowing growth, weaker customer expansi...
