Zscaler Stock Drops Amid Ongoing Q1 Operating Losses
Zscaler’s recent financial report for the first quarter of fiscal 2026 has stirred mixed reactions in the market. Despite surpassing analysts’ expectations, the company’s stock experienced a notable decline.
Zscaler Stock Drops Following Q1 Financial Results
On Tuesday, Zscaler (ZS) announced its financial performance for the first quarter. The report revealed an operating loss amounting to $36.4 million, which represents 5% of the company’s total revenue.
Market Reaction and Stock Performance
Following the announcement, Zscaler’s stock dropped by 8% during early pre-market trading. This decline occurred even as the company exceeded consensus estimates for the quarter, highlighting the investors’ concerns over ongoing losses.
Key Financial Highlights
- Operating Loss: $36.4 million
- Percentage of Revenue: 5%
These results underscore the challenges Zscaler faces as it continues to work towards profitability, prompting discussions among investors and analysts alike about the company’s future prospects.
