On September 4, Zscaler Inc. fell 6.23% in regular trading, trading at $168.43/share, with turnover of $156 million. The stock had surged over 12% to above $200 in after-hours trading following its fiscal Q4 earnings release on September 3, but gave back all gains during the regular session.

Zscaler reported fiscal Q4 adjusted earnings of $1.19 per diluted share, beating the consensus estimate of $1.09 and up from $0.89 a year ago. Revenue also exceeded the Street's $877 million expectation. However, the core concern driving the selloff centered on a notable deceleration in forward guidance: full-year fiscal 2027 revenue growth guidance of approximately 16.6%-17.5% and ARR growth of 16.6%-17.4% fell well below the prior fiscal year's roughly 25% pace, implying a meaningful step-down in organic growth momentum.

Despite multiple analysts raising price targets — RBC to $210, BofA to $210, and Needham into the $210-$215 range — all maintaining bullish ratings, the stock exhibited a classic sell-the-news pattern. The broader cybersecurity sector also showed weakness, with CrowdStrike and other peers trading lower.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)