On September 8, Zscaler Inc. fell 5.04% in regular trading, trading around $160.68/share, with turnover of approximately $111 million. The decline extends post-earnings selling pressure as the market digests a significantly slower growth outlook for fiscal 2027.

While Zscaler delivered a robust fiscal Q4 with adjusted EPS of $1.19 versus the $1.09 consensus estimate, and revenue also beat expectations, the forward guidance disappointed. The company guided fiscal 2027 revenue to approximately $3.91 billion to $3.94 billion, implying growth of just 16.6%-17.5%, a sharp deceleration from the prior fiscal year's 25% pace. ARR growth guidance of 16.6%-17.4% similarly reflected the step-down. Analysts at Macquarie called the guidance raise \"overly cautious,\" while RBC noted a cautious tone amid a sales-leadership transition and slower-than-expected uptake of new products. Despite multiple target price upgrades — RBC to $210, Barclays to $200, Piper Sandler to $175 — the stock has exhibited a classic \"sell the news\" pattern. Sector peers also traded lower, with CrowdStrike down 2.18% and ServiceNow down 4.90%.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)