Levi & Korsinsky notifies investors that it has commenced an investigation into Zscaler, Inc. (NASDAQ: ZS) concerning potential violations of the federal securities laws.
Zscaler reported Q3 revenue of $850 million, up 25% year-over-year, and ARR of $3.5 billion. However, the company's Q4 outlook came in below analyst expectations, and management simultaneously disclosed reduced cash-flow-margin projections for the remainder of fiscal 2026. Alongside the guidance, Zscaler disclosed the departure of senior sales executives. Several major Wall Street analysts downgraded the stock the following morning, and trading volume surged to three to four times the 30-day average. The cybersecurity sector was broadly rallying during the same period, making ZS's decline stand out against its peer group.
If you suffered a loss on your Zscaler, Inc. securities and would like to explore a potential recovery under the federal securities laws, submit to us or contact Joseph E. Levi, Esq. via email at [email protected] or call 212-363-7500 to speak to our team of experienced shareholder advocates.
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