TLDR ZS hit a new 52-week low of $140.56, down 8.16% on the day Stock is down 34.48% over the past year and roughly 47% over six months Q2 fiscal 2026 revenue roseTLDR ZS hit a new 52-week low of $140.56, down 8.16% on the day Stock is down 34.48% over the past year and roughly 47% over six months Q2 fiscal 2026 revenue rose

Zscaler (ZS) Stock Drops 8% to 52-Week Low Despite Earnings Beat – Here’s Why

2026/03/25 19:53
3 min read
For feedback or concerns regarding this content, please contact us at [email protected]

TLDR

  • ZS hit a new 52-week low of $140.56, down 8.16% on the day
  • Stock is down 34.48% over the past year and roughly 47% over six months
  • Q2 fiscal 2026 revenue rose 26% year-over-year to $815.8 million, beating estimates
  • Analysts at TD Cowen, BMO Capital, and Stifel all cut price targets following earnings
  • Wells Fargo initiated with Overweight and a $200 target, calling current levels a buying opportunity

Zscaler hit a fresh 52-week low on Monday, falling 8.16% to $140.56. That’s a painful drop for a stock that was trading above $300 not too long ago.


ZS Stock Card
Zscaler, Inc., ZS

The sell-off came despite the company posting a strong fiscal Q2. Revenue came in at $815.8 million, up 26% year-over-year and ahead of the $798 million consensus. Non-GAAP EPS of $1.01 also beat the $0.89 estimate by a wide margin.

So why is the stock down? Guidance.

Management’s billings growth outlook and cautious profit forecast for fiscal 2025 spooked investors. The market read it as the company’s high-growth phase beginning to cool — and it sold first, asked questions later.

Year-to-date, ZS is down around 32.51%. Over the past six months, the stock has lost close to 47%.

The technical picture isn’t pretty either. The stock carries a Sell signal on technical sentiment, and the market cap has dropped to around $24.41 billion.

Analysts moved quickly after earnings. TD Cowen trimmed its price target to $220 from $260, citing concerns over market contraction. BMO Capital cut its target to $210 from $315, raising its fiscal 2026 annual recurring revenue estimate by $32 million but attributing the target reduction to largely inorganic factors.

Stifel went furthest, slashing its target to $180 from $320. Even so, Stifel acknowledged that Zscaler’s Q2 results exceeded its own guidance and estimates across key metrics.

Wells Fargo Takes a Different View

Not everyone is bearish. On March 3, Wells Fargo initiated coverage with an Overweight rating and a $200 price target. The firm said concerns around Red Canary created a favorable entry point.

Wells Fargo cited Zscaler’s grip on large enterprises — 45% of the Fortune 500 and 40% of the Global 2000 — as a key structural advantage. It sees new logo additions contributing $300 to $400 million annually and called market saturation fears “overstated.”

The firm expects 20% growth to be sustained through Zero Trust Exchange, data security, and AI-driven offerings.

On the fundamentals side, Zscaler maintains a 77% gross margin and annual recurring revenue grew 25% to keep pace with revenue growth. The company also announced a planned data center deployment in Canada, expanding its data sovereignty capabilities.

Analyst Targets vs. Current Price

Thirty-nine analysts have revised earnings estimates upward recently, according to InvestingPro, which also flags the stock as undervalued at current levels.

For Q3 fiscal 2026, Zscaler guided for revenue of $834 to $836 million and EPS of $1.00 to $1.01, both slightly ahead of consensus estimates at the time.

The stock closed at $140.56 on March 24, 2026 — its lowest point in 52 weeks.

The post Zscaler (ZS) Stock Drops 8% to 52-Week Low Despite Earnings Beat – Here’s Why appeared first on CoinCentral.

Market Opportunity
Audiera Logo
Audiera Price(BEAT)
$0.62395
$0.62395$0.62395
-0.30%
USD
Audiera (BEAT) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact [email protected] for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Fed forecasts only one rate cut in 2026, a more conservative outlook than expected

Fed forecasts only one rate cut in 2026, a more conservative outlook than expected

The post Fed forecasts only one rate cut in 2026, a more conservative outlook than expected appeared on BitcoinEthereumNews.com. Federal Reserve Chairman Jerome Powell talks to reporters following the regular Federal Open Market Committee meetings at the Fed on July 30, 2025 in Washington, DC. Chip Somodevilla | Getty Images The Federal Reserve is projecting only one rate cut in 2026, fewer than expected, according to its median projection. The central bank’s so-called dot plot, which shows 19 individual members’ expectations anonymously, indicated a median estimate of 3.4% for the federal funds rate at the end of 2026. That compares to a median estimate of 3.6% for the end of this year following two expected cuts on top of Wednesday’s reduction. A single quarter-point reduction next year is significantly more conservative than current market pricing. Traders are currently pricing in at two to three more rate cuts next year, according to the CME Group’s FedWatch tool, updated shortly after the decision. The gauge uses prices on 30-day fed funds futures contracts to determine market-implied odds for rate moves. Here are the Fed’s latest targets from 19 FOMC members, both voters and nonvoters: Zoom In IconArrows pointing outwards The forecasts, however, showed a large difference of opinion with two voting members seeing as many as four cuts. Three officials penciled in three rate reductions next year. “Next year’s dot plot is a mosaic of different perspectives and is an accurate reflection of a confusing economic outlook, muddied by labor supply shifts, data measurement concerns, and government policy upheaval and uncertainty,” said Seema Shah, chief global strategist at Principal Asset Management. The central bank has two policy meetings left for the year, one in October and one in December. Economic projections from the Fed saw slightly faster economic growth in 2026 than was projected in June, while the outlook for inflation was updated modestly higher for next year. There’s a lot of uncertainty…
Share
BitcoinEthereumNews2025/09/18 02:59
The U.S. Department of Justice files civil forfeiture lawsuit for over $225 million in crypto fraud funds

The U.S. Department of Justice files civil forfeiture lawsuit for over $225 million in crypto fraud funds

PANews reported on June 18 that according to an official announcement, the U.S. Department of Justice filed a civil forfeiture lawsuit in the U.S. District Court for the District of
Share
PANews2025/06/18 23:59
Stellar’s XLM price climbs 7% as traders rotate into payment coins – can it go higher?

Stellar’s XLM price climbs 7% as traders rotate into payment coins – can it go higher?

Stellar’s XLM price jumps toward the top of its range as traders rotate into payment and remittance tokens amid rising volumes, stablecoin pilots, and CBDC tests
Share
Crypto.news2026/03/25 22:07