Zscaler Shares Plunge 31% as Cybersecurity Firm’s Downbeat Forecast Rattles Investors
Shares of Zscaler were headed for a record one-day decline of more than 31% after the cybersecurity company surprised investors with a downbeat revenue outlook.
Revenue Forecast Disappoints
The sharp sell-off followed Zscaler’s release of a revenue projection that fell short of market expectations. The company’s guidance triggered a broad reassessment of its near-term growth trajectory, with analysts cutting price targets and downgrading the stock. Zscaler did not provide specific revised revenue figures in the original report.
Market Reaction and Trading
The anticipated 31% drop would mark the largest single-day percentage decline in Zscaler’s history as a public company. The move erased billions of dollars in market capitalization and placed the stock among the worst performers in the technology sector. Trading volume surged as investors rushed to adjust positions.
Background on the Company
Zscaler provides cloud-based cybersecurity solutions, catering to enterprises shifting to remote work and zero-trust security models. The downbeat forecast contrasts with the company’s prior growth narrative, which had driven its stock to elevated valuations over the past year.
Market Context
- USD/RUB: 70.90 RUB (change: -0.77)
- EUR/RUB: 82.72 RUB (change: -0.58)
- Bitcoin: $74,372 (24-hour change: -1.7%)
- Oil: ~$72 per barrel (estimated)
- Date: May 27, 2026