1258 ET - Zscaler's F3Q results were "messy," according to Stifel in a research note. The analysts say a projected revenue slowdown in FY27 is the main driver in the stock's more than 30% nosedive. On top of that, two top sales leaders beneath the Chief Revenue Officer departed, and management expects capital expenditures to rise, the analysts say. AI is an opportunity for the cybersecurity firm, but tailwinds aren't expected until the new fiscal year, according the analysts. "The bottom line is that Zscaler is certainly in the penalty box," the analysts say. "It will take several quarters for the company to demonstrate it is working through these dynamics and disprove investor bear questions around increasing competition." (katherine.hamilton@wsj.com)

(END) Dow Jones Newswires

May 27, 2026 12:58 ET (16:58 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.