Stocks Are Exhibiting Uncommon Behavior, Indicating Potential Opportunities.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 17 2026
0mins
Source: Barron's
- Stock Market Volatility: Individual stock returns have been inconsistent, creating potential buying opportunities for investors.
- Investment Opportunities: Cybersecurity and financial services sectors are highlighted as promising areas for investment.
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Analyst Views on ZS
Wall Street analysts forecast ZS stock price to rise
30 Analyst Rating
24 Buy
6 Hold
0 Sell
Strong Buy
Current: 130.040
Low
260.00
Averages
325.62
High
390.00
Current: 130.040
Low
260.00
Averages
325.62
High
390.00
About ZS
Zscaler, Inc. is a cloud security company. The Company has developed a platform incorporating core security functionalities needed to enable fast and secure access to cloud resources based on identity, context and an organization's policies. Its Zscaler Zero Trust Exchange is a cloud-native platform that securely connects users, devices, applications and workloads, including artificial intelligence (AI) agents, without relying on hub-and-spoke network architecture and firewall-centric security. It delivers its solutions using a software-as-a-service (SaaS) business model and sells subscriptions to customers to access its cloud platform, together with related support services. Its services include Zscaler Internet Access (ZIA), Zscaler Private Access (ZPA), and Zscaler Digital Experience (ZDX). ZIA provides secure access to externally managed applications, including SaaS applications and internet destinations, regardless of device, location or network.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Zscaler Executives Depart, Stock Plummets Amid Conservative Guidance
- Executive Departures Impact: Zscaler recently lost two key executives, prompting management to issue conservative revenue guidance for fiscal 2027, leading to a sharp 31% drop in stock price post-announcement, reflecting investor anxiety about the company's future.
- Annual Recurring Revenue Growth: Despite the challenges posed by executive departures, Zscaler reported an annual recurring revenue (ARR) of $3.5 billion at the end of Q3 FY2026, marking a 25% year-over-year increase, indicating continued market demand for its core products.
- Market Reaction and Valuation: Zscaler's stock has fallen 42%, with a price-to-sales (P/S) ratio of 6.6, close to its lowest since the 2018 IPO; however, it is still viewed as an attractive value investment opportunity for investors.
- Uncertainty in Future Growth: Management anticipates a slowdown in ARR growth to 16% for FY2027, raising concerns on Wall Street, although Zscaler has a history of exceeding expectations, yet short-term adjustments in the sales team may impact performance.
See More
Zscaler Q3 Results Exceed Expectations but Stock Plummets
- Strong Performance: Zscaler's fiscal Q3 report revealed an adjusted profit of $1.08 per share on sales of $850.48 million, with a year-over-year sales increase of 25.4%, surpassing Wall Street estimates by $14.82 million, indicating robust performance in the cybersecurity sector.
- ARR Target Increase: The company raised its annual recurring revenue (ARR) target for fiscal 2026 to between $3.740 billion and $3.749 billion, up from previous guidance of $3.730 billion to $3.745 billion, reflecting management's confidence in future revenue growth.
- Deceleration in Growth Expected: While the ARR is projected to grow approximately 24% in fiscal 2026, management anticipates a slowdown in ARR and revenue growth to between 16% and 17% in fiscal 2027, which may affect investor confidence regarding the company's future performance.
- Significant Stock Decline: Despite exceeding expectations, Zscaler's stock plummeted 18.3% this week, now down about 49% year-over-year, highlighting market concerns over the anticipated slowdown in growth, which could influence investor risk appetite.
See More
Zscaler Q3 Results Beat Estimates but Stock Plummets
- Strong Earnings Beat: Zscaler reported an adjusted profit of $1.08 per share and sales of $850.48 million for Q3 FY2026, with a year-over-year sales increase of 25.4%, surpassing Wall Street estimates by $14.82 million, yet the stock plummeted 18.3% following the announcement.
- Upgraded Full-Year Targets: The company raised its fiscal 2026 annual recurring revenue (ARR) target to between $3.740 billion and $3.749 billion, and sales projections were also increased from $3.309 billion-$3.322 billion to $3.3295 billion-$3.3325 billion, indicating management's confidence in future performance.
- Growth Deceleration Expected: While Zscaler anticipates a 24% growth in ARR for FY2026, management expects a slowdown in growth for FY2027, projecting ARR and revenue increases of only 16% to 17%, which may affect investor confidence in the company's long-term prospects.
- Market Reaction: Despite exceeding earnings expectations, Zscaler's stock has dropped approximately 49% over the past year, reflecting market concerns about the anticipated slowdown in growth, potentially leading to sell-offs by risk-averse investors.
See More
Zscaler's Q3 Results Fail to Boost Stock Price
- Stock Price Plunge: Zscaler's stock plummeted 18.3% following the release of its Q3 fiscal 2026 results, despite sales and earnings exceeding Wall Street expectations, indicating market concerns about future growth.
- Strong Report but Dim Outlook: The company reported a non-GAAP profit of $1.08 per share on sales of $850.48 million, a 25.4% year-over-year increase; however, management anticipates significant deceleration in growth for fiscal 2027, projecting ARR and revenue growth rates of only 16%-17%.
- Annual Targets Raised: Zscaler raised its ARR target for fiscal 2026 to between $3.740 billion and $3.749 billion, with sales projections also increased to between $3.3295 billion and $3.3325 billion, reflecting confidence in future performance despite slower growth rates.
- Investor Sentiment Deteriorates: Despite exceeding financial expectations, the market's tepid response and the exclusion of Zscaler from the list of top investment stocks by analysts suggest a cautious outlook on its growth potential moving forward.
See More
Zscaler Reports Strong Earnings but Stock Plummets
- Earnings Highlights: Zscaler reported $3.5 billion in annual recurring revenue (ARR) for Q3 FY2026, reflecting a 25% year-over-year growth, indicating sustained momentum in the zero-trust architecture sector despite increasing market concerns about future growth.
- Executive Departures Impact: The departure of two senior sales executives raised market concerns regarding the stability of Zscaler's sales team, prompting management to issue conservative revenue guidance for FY2027, projecting a slowdown in ARR growth to 16%, which directly contributed to a 31% stock drop post-earnings release.
- Competitive Market Pressure: Zscaler's price-to-sales (P/S) ratio stands at 6.6, close to its lowest since the 2018 IPO, and while it appears cheaper compared to competitors like Palo Alto Networks and CrowdStrike, the market's lack of confidence in its future growth may limit stock rebound potential.
- Customer Growth Momentum: By the end of Q3, Zscaler had 700 customers, more than tripling from the previous year, indicating a rapidly increasing demand for its zero-trust architecture, although the company faces challenges from sales team adjustments in the near term.
See More
Zscaler Reports Strong Q3 but Issues Cautious Outlook
- Strong Earnings: Zscaler's Q3 revenue rose 25% year-over-year to $850.5 million, surpassing management's previous guidance, indicating robust performance in the zero-trust security market.
- Cautious Outlook: The company forecasts Q4 revenue growth of 22% to between $875 million and $878 million, which falls short of the $878.6 million consensus, reflecting challenges in attracting new customers.
- High Customer Retention: Zscaler achieved a 115% net dollar retention rate over the past 12 months, indicating high satisfaction among existing customers, but the struggle to add new clients may impact future performance.
- Executive Departures Impact: The departure of two sales executives has raised market concerns, and while the Red Canary acquisition is projected to contribute $136 million in ARR for fiscal 2026, the weakness in core business remains a point of focus.
See More
Zscaler Executives Depart, Stock Plummets Amid Conservative Guidance
- Executive Departures Impact: Zscaler recently lost two key executives, prompting management to issue conservative revenue guidance for fiscal 2027, leading to a sharp 31% drop in stock price post-announcement, reflecting investor anxiety about the company's future.
- Annual Recurring Revenue Growth: Despite the challenges posed by executive departures, Zscaler reported an annual recurring revenue (ARR) of $3.5 billion at the end of Q3 FY2026, marking a 25% year-over-year increase, indicating continued market demand for its core products.
- Market Reaction and Valuation: Zscaler's stock has fallen 42%, with a price-to-sales (P/S) ratio of 6.6, close to its lowest since the 2018 IPO; however, it is still viewed as an attractive value investment opportunity for investors.
- Uncertainty in Future Growth: Management anticipates a slowdown in ARR growth to 16% for FY2027, raising concerns on Wall Street, although Zscaler has a history of exceeding expectations, yet short-term adjustments in the sales team may impact performance.
See More
Zscaler Q3 Results Exceed Expectations but Stock Plummets
- Strong Performance: Zscaler's fiscal Q3 report revealed an adjusted profit of $1.08 per share on sales of $850.48 million, with a year-over-year sales increase of 25.4%, surpassing Wall Street estimates by $14.82 million, indicating robust performance in the cybersecurity sector.
- ARR Target Increase: The company raised its annual recurring revenue (ARR) target for fiscal 2026 to between $3.740 billion and $3.749 billion, up from previous guidance of $3.730 billion to $3.745 billion, reflecting management's confidence in future revenue growth.
- Deceleration in Growth Expected: While the ARR is projected to grow approximately 24% in fiscal 2026, management anticipates a slowdown in ARR and revenue growth to between 16% and 17% in fiscal 2027, which may affect investor confidence regarding the company's future performance.
- Significant Stock Decline: Despite exceeding expectations, Zscaler's stock plummeted 18.3% this week, now down about 49% year-over-year, highlighting market concerns over the anticipated slowdown in growth, which could influence investor risk appetite.
See More
Zscaler Q3 Results Beat Estimates but Stock Plummets
- Strong Earnings Beat: Zscaler reported an adjusted profit of $1.08 per share and sales of $850.48 million for Q3 FY2026, with a year-over-year sales increase of 25.4%, surpassing Wall Street estimates by $14.82 million, yet the stock plummeted 18.3% following the announcement.
- Upgraded Full-Year Targets: The company raised its fiscal 2026 annual recurring revenue (ARR) target to between $3.740 billion and $3.749 billion, and sales projections were also increased from $3.309 billion-$3.322 billion to $3.3295 billion-$3.3325 billion, indicating management's confidence in future performance.
- Growth Deceleration Expected: While Zscaler anticipates a 24% growth in ARR for FY2026, management expects a slowdown in growth for FY2027, projecting ARR and revenue increases of only 16% to 17%, which may affect investor confidence in the company's long-term prospects.
- Market Reaction: Despite exceeding earnings expectations, Zscaler's stock has dropped approximately 49% over the past year, reflecting market concerns about the anticipated slowdown in growth, potentially leading to sell-offs by risk-averse investors.
See More
Zscaler's Q3 Results Fail to Boost Stock Price
- Stock Price Plunge: Zscaler's stock plummeted 18.3% following the release of its Q3 fiscal 2026 results, despite sales and earnings exceeding Wall Street expectations, indicating market concerns about future growth.
- Strong Report but Dim Outlook: The company reported a non-GAAP profit of $1.08 per share on sales of $850.48 million, a 25.4% year-over-year increase; however, management anticipates significant deceleration in growth for fiscal 2027, projecting ARR and revenue growth rates of only 16%-17%.
- Annual Targets Raised: Zscaler raised its ARR target for fiscal 2026 to between $3.740 billion and $3.749 billion, with sales projections also increased to between $3.3295 billion and $3.3325 billion, reflecting confidence in future performance despite slower growth rates.
- Investor Sentiment Deteriorates: Despite exceeding financial expectations, the market's tepid response and the exclusion of Zscaler from the list of top investment stocks by analysts suggest a cautious outlook on its growth potential moving forward.
See More
Zscaler Reports Strong Earnings but Stock Plummets
- Earnings Highlights: Zscaler reported $3.5 billion in annual recurring revenue (ARR) for Q3 FY2026, reflecting a 25% year-over-year growth, indicating sustained momentum in the zero-trust architecture sector despite increasing market concerns about future growth.
- Executive Departures Impact: The departure of two senior sales executives raised market concerns regarding the stability of Zscaler's sales team, prompting management to issue conservative revenue guidance for FY2027, projecting a slowdown in ARR growth to 16%, which directly contributed to a 31% stock drop post-earnings release.
- Competitive Market Pressure: Zscaler's price-to-sales (P/S) ratio stands at 6.6, close to its lowest since the 2018 IPO, and while it appears cheaper compared to competitors like Palo Alto Networks and CrowdStrike, the market's lack of confidence in its future growth may limit stock rebound potential.
- Customer Growth Momentum: By the end of Q3, Zscaler had 700 customers, more than tripling from the previous year, indicating a rapidly increasing demand for its zero-trust architecture, although the company faces challenges from sales team adjustments in the near term.
See More
Zscaler Reports Strong Q3 but Issues Cautious Outlook
- Strong Earnings: Zscaler's Q3 revenue rose 25% year-over-year to $850.5 million, surpassing management's previous guidance, indicating robust performance in the zero-trust security market.
- Cautious Outlook: The company forecasts Q4 revenue growth of 22% to between $875 million and $878 million, which falls short of the $878.6 million consensus, reflecting challenges in attracting new customers.
- High Customer Retention: Zscaler achieved a 115% net dollar retention rate over the past 12 months, indicating high satisfaction among existing customers, but the struggle to add new clients may impact future performance.
- Executive Departures Impact: The departure of two sales executives has raised market concerns, and while the Red Canary acquisition is projected to contribute $136 million in ARR for fiscal 2026, the weakness in core business remains a point of focus.
See More
