The company posted a 26% growth in second-quarter revenue to $815.8 million, above estimates of $815.7 million, according to Fiscal.ai data.

  • For the full fiscal year 2026, Zscaler set a revenue guidance of $3.309 billion to $3.322 billion.
  • JPMorgan lowered its price target to $250 from $267 and maintained an ‘Overweight’ rating, according to The Fly.
  • Mizuho said the selloff post earnings could be seen as a buying opportunity.

Shares of Zscaler (ZS) tumbled 15% on Friday, sinking to their lowest level in more than 30 months, following a string of price target cuts despite the company’s better-than-expected second-quarter print.

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If the current levels hold at close, ZS shares would record their steepest intraday slide since September 2024.

Zscaler reported a 26% jump in second-quarter (Q2) revenue to $815.8 million, just above Wall Street’s estimates of $815.7 million, according to Fiscal.ai data. Earnings came in at $1.01 per share, beating the $ 0.9-per-share estimate.

For the third quarter of fiscal 2026, the company projects revenue of $834 million to $836 million, marking 23% growth, with earnings of $1.00 to $1.01 per share. For the full fiscal year 2026, Zscaler raised its guidance to $3.309 billion to $3.322 billion, up from an earlier guidance of $3.282 billion to $3.301 billion. The company also forecast full-year EPS of $3.99 to $4.02.

JPMorgan Says Zscaler’s Organic ARR Was “A Bit Lighter” Than Expectations

JPMorgan lowered its price target on Zscaler to $250 from $267 and maintained an ‘Overweight’ rating, according to The Fly. The firm said that despite “solid” Q2 results, Zscaler’s organic annual recurring revenue came in “a bit lighter” than expectations. JPMorgan added that the target reduction reflects recent multiple contractions across the peer group.

Mizuho lowered Zscaler’s price target to $250 from $265 and kept an ‘Outperform’ rating, adding that the share selloff post earnings could be seen as a buying opportunity.

How Did Stocktwits Users React?

Despite the sharp selloff, retail sentiment on Stocktwits remained in the ‘extremely bullish’ territory over the past 24 hours. Chatter on the platform grew 500% in 24 hours, as of Friday morning, according to Stocktwits data.

One user said they were buying the dip.

Another user saw “huge upside going forward.”

Year-to-date, ZS shares have declined more than 37%.

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