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Zscaler shares drop 4% as slower FY2027 growth outlook overshadows strong earnings.

Company Fundamentals
04 Sep 2026
24/7 Wall Street
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Bearish
Zscaler shares drop 4% as slower FY2027 growth outlook overshadows strong earnings.

Zscaler reported a strong fiscal Q4 with 25% revenue growth and earnings beating expectations, but its fiscal 2027 growth guidance of 16.6% to 17.5% revenue increase disappointed investors, causing its stock to fall 4%. This slowdown contrasts with the previous year's 25% growth and includes a 3% workforce reduction. Peers Palo Alto and CrowdStrike also showed strong results but faced similar market pressure due to tempered growth forecasts. Investors will watch upcoming events like Zscaler's Investor Day and new product launches for signs of stabilizing growth amid sector-wide valuation adjustments.

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