Zscaler Inc. (ZS) experienced a significant after-hours plunge of 7.69% following the release of its second-quarter fiscal 2026 financial results.

The cloud security company reported quarterly revenue of $815.751 million, beating analyst estimates of $798.8 million and representing 26% year-over-year growth. Adjusted earnings per share came in at $1.01, also exceeding the consensus estimate of $0.90. However, the company reported a GAAP net loss of $34.312 million, or $0.21 per share, for the quarter.

Despite the revenue and adjusted earnings beats, investors reacted negatively in post-market trading. The company provided third-quarter revenue guidance of $834 million to $836 million and raised its full-year annual recurring revenue (ARR) guidance to 24% growth. Market participants may be evaluating the balance between strong top-line performance and continued GAAP losses, leading to the sharp decline in extended trading hours.