Zscaler (ZS) stock fell 4% after its FY2027 revenue and annual recurring revenue (ARR) growth guidance of 16.6%-17.5% came in significantly below the FY2026 growth rate of 25%.
Zscaler's FY27 growth guidance, which was significantly below market expectations, overshadowed its better-than-expected Q4 revenue and adjusted EPS. This led to pressure on the cybersecurity sector, with CrowdStrike (CRWD) shares falling 1% and Palo Alto (PANW) shares remaining flat. Zscaler also announced a 3% workforce reduction.
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