Cloud security firm Zscaler dips after wider quarterly loss

Zscaler

27/02/2026 09:30

** Shares of cloud security firm Zscaler ZS.O down 8.68% at $152.83 premarket

** Co reported Q2 net loss of $34.3 million, up from net loss of $7.7 million a year earlier

** ZS says losses widened as it ramped up spending on sales, marketing and R&D to compete more aggressively

** Forecast Q3 adjusted earnings of $1.00 to $1.01 per share, above analysts' average estimate of 95 cents

** "On memory pricing volatility, ZS has not seen meaningful impact yet but noted this could become a factor with regard to capex if pricing continues to escalate," says J.P. Morgan

** 49 analysts rate the stock "buy" on average; their median PT is $280, according to data compiled by LSEG

** As of last close, stock down 25.59% YTD

 (Reporting by Kanishka Ajmera in Bengaluru)

 ((mail to: Kanishka.Ajmera@thomsonreuters.com))