Zscaler's stock is down significantly due to decelerating ARR growth, but the company's long-term outlook and reasonable valuation suggest a potential 'hold' or buying opportunity for patient investors.
Source Post
Why Is Zscaler Stock Crashing and is it a Generational Buying Opportunity? | ZS Stock Analysis
Parkev Tatevosian, CFAMay 28, 2026
Zscaler's stock dropped 31% after disappointing quarterly results, primarily due to decelerating net new ARR growth which is not sustainable at current revenue growth rates. Despite this, the company's management remains optimistic about long-term growth, and the stock's valuation is considered reasonable, not cheap, compared to the S&P 500 average. While operational losses slightly improved as a percentage of revenue, free cash flow as a percentage of revenue worsened.
Linked Mentions
Tickers discussed in this post
Linked Signals
Tracked calls opened from this post
No linked signals were opened directly from this post.