Zscaler’s Q3 adjusted earnings of $1.08 per share topped estimates, but forward guidance disappointed investors.
Zscaler (ZS) shares plunged 14% in after-hours trading as the cybersecurity firm’s mixed guidance eclipsed stronger-than-expected third-quarter results. The company reported adjusted earnings of $1.08 per share, up from the prior year, while revenue climbed 25% year-over-year to $538.2 million for the period ending April 30.
Analysts had anticipated earnings of $1.05 per share on revenue of $530 million, according to consensus estimates. Despite the beat, investors focused on the company’s outlook, which failed to meet elevated expectations.
The sell-off reflects concerns over growth sustainability amid broader macroeconomic pressures on enterprise spending.