ZS Stock Recent News

Despite ZS stock's 19% drop, the company's leadership in cloud security and strong growth potential make it worth retaining.

Zscaler delivered beats on the top and bottom lines Tuesday afternoon. Sales growth remained strong, but management forecast a growth slowdown in its fiscal 2025.

Shares of Zscaler Inc ZS tanked in early trading on Wednesday, even after the company reported upbeat fiscal fourth-quarter results.

Zscaler published Q4 results yesterday after market hours, and the stock is down by 15-18% in pre-market today. Billings growth in H1 could be weak, but investors should take note of the back-ended effect from contracted, non-cancellable billings. Gross margins may drop due to a focus on emerging products, and FCF margins could decline as CAPEX commitments increase, though the overall cash position still remains strong.

CNBC's Jim Cramer delivers his daily Mad Dash.

Despite a double beat, Zscaler stock crashed 16% after reporting earnings.

John Blank from Zacks Investment Research discusses Zscaler's Q4 earnings and his recommendation.

Zscaler's stock dropped 15% after hours due to its projected 10th consecutive quarter of revenue growth deceleration, now priced at 46x forward non-GAAP operating profits. Despite a rock-solid balance sheet and strong medium-term growth prospects, Zscaler's slowing growth and competitive pressures raise concerns. Zscaler's fiscal Q1 2025 will likely show lower profit margins, contradicting expectations for higher profitability as the company scales.

Shares in Zscaler (ZS) plunged in extended trading Tuesday after the provider of cloud-based cybersecurity services issued current quarter and full-year earnings guidance that came in significantly below Wall Street expectations, as enterprise customers manage technology budgets and spending more carefully against a backdrop of economic uncertainty.

Zscaler forecast fiscal 2025 revenue and profit below Wall Street estimates on Tuesday, as it grapples with weak spending on its cybersecurity products, sending its shares down more than 12% in extended trading.