Zscaler shares plunge 25% on weak guidance, dragging cybersecurity peers down with it
Zscaler's shares fell 25% following a disappointing Q4 revenue outlook, despite beating Q3 revenue estimates. This decline triggered a sell-off across the cybersecurity sector, impacting companies like Palo Alto Networks and CrowdStrike. Investors are now concerned about potential broader deceleration in enterprise security spending amidst Zscaler's leadership changes and reduced cash flow margin guidance.
- ▪Zscaler's shares dropped more than 24% on May 27, 2026, after issuing Q4 revenue guidance below analyst expectations.
- ▪The company reported a 25% year-over-year revenue increase for its fiscal third quarter, totaling $850.5 million.
- ▪Concerns about pipeline health and deal velocity arose due to recent departures in Zscaler's sales leadership team.
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Zscaler shares plunge 25% on weak guidance, dragging cybersecurity peers down with it The cloud security giant beat Q3 revenue estimates but spooked investors with a Q4 outlook that missed consensus by a razor-thin margin, triggering a sector-wide sell-off. Share Add us on Google by Editorial Team May. 27, 2026 window.sevioads = window.sevioads || []; var sevioads_preferences = []; sevioads_preferences[0] = {}; sevioads_preferences[0].zone = "01f21ccf-2092-46b1-9ac7-8c44cc782e0f"; sevioads_preferences[0].adType = "native"; sevioads_preferences[0].inventoryId = "c5700508-581b-472c-8fdd-a931cdbfc8e1"; sevioads_preferences[0].accountId = "1e47efc1-ec2d-4fca-a8b9-354e249e5095"; sevioads.push(sevioads_preferences); Zscaler posted a 25% year-over-year revenue increase for its fiscal third…
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