🔴 ZS is trading 21.3% down today after lowering free cash flow margin guidance despite a Q3 revenue beat

ZS is trading at $145.30 (21.3% down) in pre-market after reporting third-quarter fiscal 2026 results where a lowered free cash flow margin outlook overshadowed a revenue beat.

• The company posted 25% revenue growth to $850.5 million and raised its full-year revenue and EPS guidance.
• The downward revision to free cash flow margin guidance is the primary negative takeaway for investors, driving the sharp decline despite the top-line strength.
• The drop comes despite a generally risk-on tape with the Nasdaq up 0.45%, highlighting the company-specific nature of the move.