Zscaler Inc. (ZS) shares tumbled 7.73% in pre-market trading on Wednesday, following the company's fiscal first-quarter earnings report. The cybersecurity firm reported better-than-expected results but failed to impress investors with its forward guidance.

The company posted Q1 revenue of $788.1 million, up 26% year-over-year and beating estimates of $773.75 million. Adjusted earnings per share came in at $0.96, surpassing the $0.86 consensus. Despite these strong results, the stock fell as the company's raised annual revenue forecast of $3.282 billion to $3.301 billion was seen as insufficient given the Q1 beat.

Analysts noted that while Zscaler's performance remains solid, the guidance raise was less than the Q1 revenue beat, suggesting the market had higher expectations for the cloud security leader's growth trajectory.