Zscaler Shares Drop on Weak Fourth Quarter Revenue Outlook
Zscaler forecast fourth quarter revenue below estimates as cloud security competition grows. Shares fell 15% despite beating third quarter revenue expectations.
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ZSCALER INC forecast fourth-quarter revenue between $875 million and $878 million, signaling a decline of 15% in shares on May 26. The outlook fell short of LSEG analyst estimates of $878.6 million as enterprises tighten spending on cloud security products. Intensifying competition in the SASE market threatens Zscaler's growth despite the broader artificial intelligence boom driving cloud adoption.
