Zscaler Stock (ZS) Drops on Earnings; Price Target Trimmed
Zscaler Inc. (NASDAQ:ZS), a cloud security leader, saw its stock price decline despite reporting strong first-quarter fiscal 2026 earnings that surpassed analyst expectations. The market’s reaction reflects concerns about future growth and guidance, leading several analysts to adjust their price targets.
In pre-market trading, Zscaler’s stock traded 6.11% lower following the earnings release. This downturn occurred even as the company reported adjusted earnings per share (EPS) of $0.96, exceeding the consensus estimate of $0.86.
Revenue also impressed, reaching $788.1 million, a 26% year-over-year increase that outpaced the expected $773.26 million. Annual Recurring Revenue (ARR) grew by 26% to $3.2 billion, with deferred revenue…
