Zscaler Stock Plunges 30% After Earnings Beat with Weak Guidance

Zscaler's stock price dropped significantly despite beating earnings estimates, due to concerns over weak guidance for future growth. Analysts lowered their price targets, but remain optimistic about the company's strong NRR. Zscaler cited sales leadership transitions as a reason for disappointing outlook.

Zscaler ZS saw its stock price plummet by 30% on May 27, 2026, despite the company reporting a solid Q3 earnings beat. However, the drop was primarily triggered by Zscaler's guidance for future growth, which fell short of analysts' expectations.

According to news reports, the disappointing outlook was largely attributed to the transition of sales leadership. Zscaler's management cited this as a reason for cautious guidance.

Although analysts have lowered their price targets, they remain optimistic about the company's strong Net Revenue Retention (NRR). Market experts argue that the temporary dip in stock price presents a buying opportunity for those with a long-term view on the company's fundamentals.

Zscaler Stock Plunges 30% After Earnings Beat with Weak Guidance

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