Stock Track | Zscaler Plummets 13.87% Intraday on Wider Q2 Loss, Lowered Guidance and Analyst Cuts

Stock Track

02/27

Zscaler Inc. shares plummeted 13.87% during intraday trading on Friday, following a significant pre-market decline.

The sharp drop came after the cloud security firm reported its second-quarter fiscal 2026 results, which revealed a wider net loss of $34.3 million compared to a loss of $7.7 million a year ago. While the company's quarterly revenue and adjusted earnings per share exceeded analyst estimates, it lowered its full-year sales outlook, overshadowing the quarterly beat and disappointing investors.

The negative earnings reaction triggered a wave of analyst price target cuts from major Wall Street firms, including JP Morgan, Piper Sandler, Jefferies, and Deutsche Bank, further contributing to the bearish sentiment and driving the stock lower throughout the trading session.

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