A strong quarter did little when Zscaler's guidance spooked investors already nervous about AI eating their lunch.
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Zscaler expects Q4 revenue of $875 million to $878 million, slightly below Wall Street estimates of $878.6 million.
Shares of Zscaler fell late Tuesday after fiscal third-quarter earnings and revenue surpassed Wall Street’s expectations but sales guidance fell short. The cybersecurity company posted adjusted earnings of $1.08 a share, compared with 84 cents a share a year ago and above Wall Street’s expectations of $1.01 a share. Revenue grew 25% to $850.5 million, topping the analyst consensus of $835.6 million, according to FactSet.
Zscaler stock tumbled after the cybersecurity firm beat fiscal Q3 estimates but missed views with its revenue guidance.
FSLY sinks nearly 42% after a Q1 beat. Investors eye slower Network Services growth, pricing erosion and rising 2026 infra spend.