On September 4, Zscaler Inc. fell 5.01% in pre-market trading to $168.42/share, with turnover of $33.45 million, fully erasing a post-earnings surge that had briefly lifted shares above $200.

The company reported fiscal Q4 adjusted earnings of $1.19 per diluted share, well above the consensus estimate of $1.09 and up from $0.89 a year ago. Revenue also exceeded expectations, growing approximately 25% year-over-year. Management issued Q1 and full-year guidance above Street estimates, with FY2027 Q1 revenue of $935-$939 million versus the expected $927 million and full-year adjusted EPS of $4.86-$4.90 versus the $4.60 consensus. However, ARR growth guidance of 16.6%-17.4% for FY2027 marked a sharp deceleration from 25% in FY2026, raising investor concerns about slowing momentum. Despite RBC raising its price target to $210 and multiple analysts maintaining bullish ratings, the stock exhibited a classic profit-taking pattern. Cybersecurity peers also traded lower, with CrowdStrike down 1.35% and Palo Alto Networks down 1.02%, reflecting broader sector weakness.

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