Zscaler Stock Falls on Weak Outlook Despite Revenue and Earnings Beats
Zscaler's Mixed Performance Analysis
Shares in Zscaler Inc. fell 14% in late trading today after the company reported its earnings. For its fiscal 2025 first quarter, Zscaler expects adjusted earnings per share of 62 to 63 cents on revenue of $604 million. This weak outlook has raised concerns among investors, overshadowing the positive revenue and earnings beats seen in the latest financial results.
Financial Highlights
- Adjusted Earnings Per Share Forecast: 62 to 63 cents
- Revenue Expectations: $604 million
- Stock Price Decline: 14% drop in late trading
Investor Sentiment
While the earnings report showcased strong revenue growth, the guidance for the upcoming period has deterred investors, leading to a notable drop in share prices. This serves as a reminder of the volatility inherent in technology stocks.
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