ZS is trading 27.3% down at $134.16 after its latest earnings report, where strong Q3 results were overshadowed by a cautious outlook for Q4 and FY27.
- The company issued below-consensus Q4 revenue guidance and projected a slower 16–17% growth rate for FY27, triggering a sharp reset in growth expectations.
- Investors are reacting to trimmed free cash flow margin guidance as the company ramps up AI-related investments.
- Despite solid current-quarter execution and raised FY26 revenue targets, the more measured long-term trajectory is driving the sell-off.