ZS Zscaler, Inc.

bearish · high conviction track record → $139.73 +9.69 (+7.5%)
Mkt Cap $30B 52wk $114.62 - $336.99 13h ago
Factor divergence: DIVERGENCE: estimate_revisions, price_momentum, narrative_gap bullish vs analyst_revisions bearish
Est. revisions: +5.3%
Factor Model (net -0.2)

Factor Model

net -0.2 2.2 / 10
Est. Revisions
+0.3
Insider Activity
+0.0
Momentum
+0.3
Analyst Rev.
-1.0
Narrative Gap
+0.5

Zscaler plunges 31.5% despite earnings beat

Watch: Next earnings release for updates on AI integration progress and sales recovery after leadership losses.

Zscaler shares plunged over 31.5% on May 27 after beating revenue and profit estimates but issuing weak FY2027 guidance and warning of a 2% rise in capex due to memory shortages and rising costs. The quarter saw two sales leaders depart, shaking market confidence. Despite strong AI spending announcements and analyst buy ratings across major firms, decelerating revenue growth and infrastructure costs pressure the outlook.

The sharp stock drop reflects investor concern over rising costs and cautious guidance, signaling potential growth headwinds that may undermine recent earnings strength and analyst optimism.

Evidence

6h ago Why Zscaler Stock Plummeted This Week yahoo-finance
12h ago Dell, Snowflake, And Okta Are Among Top 10 Large-Cap Gainers Last Week (May 25-May 29): Are the Others in Your Portfolio? benzinga
14h ago MarketBeat Week in Review – 05/25 - 05/29 yahoo-finance
Updated Friday Stocks Slip Before the Open as U.S.-Iran Flare-Up Lifts Oil and Bond Yields, PCE Inflation Data in Focus yahoo-finance
Updated Thursday Wells Fargo main ZS: Overweight → Overweight
4d ago B. Riley Securities main ZS: Buy → Buy
4d ago JP Morgan main ZS: Overweight → Overweight
4d ago UBS main ZS: Buy → Buy
7 older signals
4d ago Mizuho main ZS: Outperform → Outperform
4d ago RBC Capital main ZS: Outperform → Outperform
4d ago Piper Sandler main ZS: Neutral → Neutral
4d ago Macquarie main ZS: Outperform → Outperform
4d ago Stifel main ZS: Buy → Buy
4d ago Barclays main ZS: Overweight → Overweight
4d ago Canaccord Genuity main ZS: Buy → Buy
Fundamentals & Data ▾
Zscaler, Inc. Technology · Software - Infrastructure
Mkt Cap
$30B
52w Range
$114.62 - $336.99
Short Interest
10.2M 9.76%
Days to Cover
3.6 +24%
Technicals downtrend
vs 20d MA
-9.5%
vs 50d MA
-2.7%
from 52w Hi
-24.3%
Vol (20d)
132%
1w return
-18.3%
1m return
+3.7%
Vol ratio
2.4x
Insiders
selling 0B / 15S
Analysts
mixed
EPS Estimate
$1.09 +5.3% 30d 0up / 1dn
Est. Dispersion
8% 41 analysts
Analyst Target
$194 $145 - $250
Options P/C
0.47 4C / 1P unusual
Fund Convergence
strong Citadel, Tiger Global, Renaissance, D.E. Shaw, Two Sigma
Financials
Revenue
$816M +26% YoY
FCF
$169M
Gross Margin
77%
Op Margin
-6%
Momentum: decelerating
Top Holders
Citadel $366M
Tiger Global $355M
Renaissance $32M
D.E. Shaw $30M
Two Sigma $25M
Recent Filings & Data
analyst rating 2
Evercore ISI Group down → In-Line 4d ago
B. Riley Securities up → Buy 13d ago
Track Record (1/1 correct) ▾

Direction History

1/1 correct at 5 days
2026-04-16 bearish -1.0% ✓
Full track record across all stocks →
bearish for 1d | 15 signals · latest 6h ago

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