- Premarket move: Zscaler shares fell 6.9% to $269.80.
- Revenue outlook: The company raised full-year revenue guidance to $3.28B–$3.30B, up from $3.27B–$3.28B.
- Q1 performance: Beat estimates on revenue and profit, driven by strong demand for cloud and AI security solutions.
- Acquisition: Purchased Red Canary to accelerate AI-driven security innovation, but lack of guidance for Red Canary prompted investor concerns.
- Analyst reactions: At least three brokerages cut price targets following results.
- Current broker consensus: 38 of 48 rate the stock “buy” or higher, 10 “hold”.
- Median price target: $335.
- Year-to-date performance: Stock is up 60.6% YTD.