ZS Zscaler, Inc.

bearish · high conviction track record → $139.73 +9.69 (+7.5%)
Mkt Cap $30B 52wk $114.62 - $336.99 Updated Saturday
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 3.6 / 10
Est. Revisions
+0.3
Insider Activity
+0.0
Momentum
+0.3
Analyst Rev.
-1.0
Narrative Gap
+0.5

Zscaler plunges 31.5% on weak guidance

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

Zscaler shares plunged over 31.5% on May 27 despite beating revenue and profit estimates. The company warned of 200 basis points higher capital expenditures in FY2027 due to memory shortages and rising costs. Two key sales leaders left this quarter, weakening market confidence amid cautious outlook and infrastructure cost pressures.

The weak guidance and rising costs signal slowing growth, weighing heavily on valuation and investor confidence despite strong recent earnings and analyst bullishness.

Evidence

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
4d ago Mizuho main ZS: Outperform → Outperform
4d ago RBC Capital main ZS: Outperform → Outperform
7 older signals
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
4d ago Baird main ZS: Outperform → Outperform
4d ago Scotiabank main ZS: Sector Outperform → Sector Outperform
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
-15.5%
from 52w Hi
-29.6%
Vol (20d)
130%
1w return
-25.5%
1m return
-4.4%
Vol ratio
2.3x
Insiders
selling 0B / 14S
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%
bearish for 1d | 15 signals · latest Updated Saturday

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