Zscaler Inc. (ZS) experienced a significant 24-hour plunge of 9.19% during Thursday's post-market trading session 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, investors reacted negatively as the company lowered its full-year revenue outlook to a new range of $3.31 billion to $3.32 billion, down from previous projections.
Despite raising its fiscal 2026 adjusted EPS guidance from $3.99 to $4.02, the downward revision in revenue guidance appears to have overshadowed the earnings beat, leading to the sharp decline in extended trading hours. The company also reported a GAAP net loss of $34.312 million for the quarter, highlighting ongoing profitability challenges under standard accounting measures.