Zscaler's Earnings Misses Expectations, Shares Plunge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 27 2026
0mins
Source: CNBC
- Zscaler Earnings Miss: Zscaler's revenue guidance for the current quarter is between $875 million and $878 million, falling short of the $879 million analysts expected, leading to a more than 23% drop in shares, indicating market concerns about its future growth.
- Peer Impact: Following Zscaler's disappointing results, shares of Palo Alto Networks and CrowdStrike fell by 4% and over 3%, respectively, reflecting a decline in market confidence across the cybersecurity sector.
- Bath & Body Works Strong Performance: The company reported better-than-expected first-quarter earnings and forecasted second-quarter EPS between 20 to 25 cents, exceeding the 21 cents expected by analysts, resulting in a 15% increase in shares, showcasing resilience in market demand.
- Semtech's Impressive Results: Semtech posted first-quarter adjusted earnings and revenue that surpassed estimates, with guidance for current-quarter earnings and EBITDA also exceeding analyst expectations, leading to a 7% rise in shares, highlighting its strong performance in the semiconductor market.
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Analyst Views on MU
Wall Street analysts forecast MU stock price to fall
26 Analyst Rating
24 Buy
2 Hold
0 Sell
Strong Buy
Current: 948.800
Low
235.00
Averages
336.12
High
500.00
Current: 948.800
Low
235.00
Averages
336.12
High
500.00
About MU
Micron Technology, Inc. provides memory and storage solutions. The Company delivers a portfolio of high-performance dynamic random-access memory (DRAM), NAND, and NOR memory and storage products through its Micron and Crucial brands. The Company's products enable advancing in artificial intelligence (AI) and compute-intensive applications. Its segments include Cloud Memory Business Unit (CMBU), Core Data Center Business Unit (CDBU), Mobile and Client Business Unit (MCBU) and Automotive and Embedded Business Unit (AEBU). CMBU is focused on memory solutions for large hyperscale cloud customers, and high bandwidth memory (HBM) for all data center customers. CDBU is focused on memory solutions for mid-tier cloud, enterprise, and OEM data center customers and storage solutions for all data center customers. MCBU is focused on memory and storage solutions for mobile and client segments. AEBU is focused on memory and storage solutions for the automotive, industrial, and consumer segments.
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.
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- Growth in Long-Term Contracts: Approximately 40% of Micron's revenue is now tied to long-term agreements, which helps mitigate the cyclical nature of its business, especially amid supply-demand imbalances in the DRAM and NAND markets.
- Potential Stock Split: With shares trading above $900, Micron may consider a stock split to attract more retail investors, although this action would not alter the company's fundamentals, it could enhance market visibility.
See More
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- Strategic Implications: This investment is expected to not only revitalize the US semiconductor industry but also promote research and innovation in related technologies, thereby enhancing the competitiveness of the entire sector.
- Supply Chain Security: By increasing investment in local supply chains, Micron aims to reduce reliance on external suppliers, enhancing the resilience of its supply chain and ensuring stability amid global market fluctuations.
- Economic Impact: The investment is projected to create thousands of high-skilled jobs, stimulate local economic development, and support the US government's semiconductor policy objectives.
See More
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- Nasdaq Debut: Memory giant SK Hynix is set for its Nasdaq debut, with expectations that this major offering will further enhance its market position and capital strength.
- Increased Competitive Pressure: In contrast, Micron and Sandisk saw their stock prices fall, indicating the intense competition in the market and differing views on industry prospects.
- Market Dynamics Shift: Overall market performance remains volatile, prompting investors to monitor industry trends closely to adjust their investment strategies in response to future uncertainties.
See More
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- Broadcom's AI Chip Business: Broadcom achieved a 48% year-over-year growth in its latest quarter, while not hitting the 50% hypergrowth mark, its custom AI chip division is projected to generate $100 billion in revenue by 2027, indicating significant potential in the AI computing market.
- Micron's Memory Chip Shortage: Micron's strong performance in memory chips is driven by high demand in data centers, with expectations that this tight supply will persist beyond 2027, propelling rapid revenue and profit growth and solidifying its status as a hypergrowth company.
- IonQ's Quantum Computing Leadership: IonQ holds the world record for accuracy in quantum computing technology, and despite not being commercially viable yet, its revenue growth rate of 755% year-over-year highlights its immense potential in the future quantum computing market, which could reach $72 billion by 2035.
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See More
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- Portfolio Adjustment: Billionaire Israel Englander sold his shares in Sandisk during Q1, despite the company's stock soaring 3,600% over the past year, indicating a cautious stance towards potential market volatility.
- Sandisk Financial Performance: Sandisk reported a staggering 251% revenue increase to $5.9 billion in Q3 FY2026, driven by strong demand for enterprise SSDs, yet analysts predict a sales decline in 2028, highlighting cyclical market risks.
- Everpure's Growth Potential: Everpure's revenue rose 35% to $1.1 billion in Q1 FY2027, with non-GAAP net income increasing 62% to $0.47 per share, showcasing its robust performance in the AI storage market and future growth prospects.
- Market Competitive Landscape: Everpure was recognized by Gartner as a leader in enterprise storage platforms, with its products eliminating bottlenecks associated with traditional SSDs, enhancing data management efficiency, and expected to continue attracting customers in the AI ecosystem.
See More
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- Broadcom's AI Chip Growth: Broadcom anticipates its custom AI chip business will generate $100 billion in revenue by 2027, with a robust 48% year-over-year growth rate indicating strong market demand, suggesting that the company's strategic positioning in AI computing will yield significant long-term benefits.
- Micron's Memory Chip Shortage: Micron benefits from a persistent memory chip shortage, expected to last until 2027, driving substantial revenue and profit increases, highlighting its critical role in data center operations and reinforcing its market position.
- IonQ's Quantum Computing Leadership: IonQ holds the world record for accuracy in quantum computing technology, with a staggering 755% year-over-year growth despite the lack of commercially viable products, indicating strong performance in early-stage research system sales and partnerships, suggesting immense future market potential.
- Optimistic Market Outlook: As the AI computing market focuses, Broadcom, Micron, and IonQ exhibit hypergrowth potential, particularly IonQ, which could see the quantum computing market reach $72 billion in annual sales by 2035, underscoring the strategic importance of these companies in future technology sectors.
See More
