Zscaler (ZS) Slashes 13% on Profit-Taking

We precocious published 10 Stocks Losing Their Bite Before Thanksgiving. Zscaler, Inc. (NASDAQ:ZS) is 1 of the worst-performing stocks connected Wednesday.

Zscaler snapped 2 consecutive days of gains connected Wednesday, declining 13.03 percent to adjacent astatine $251.97 apiece arsenic investors appeared to person priced successful a beardown net show for the archetypal 4th of fiscal twelvemonth 2026 and resorted to profit-taking up of the Thanksgiving holiday.

In an updated report, Zscaler, Inc. (NASDAQ:ZS) said it narrowed its nett nonaccomplishment by 3.7 percent to $11.6 cardinal from $12.05 cardinal successful the aforesaid play past year. Revenues jumped by 25 percent to $788 cardinal from $627.9 cardinal year-on-year.

Looking ahead, Zscaler, Inc. (NASDAQ:ZS) expects the afloat fiscal twelvemonth to make revenues of $3.282 cardinal to $3.301 billion, arsenic good arsenic yearly recurring revenues betwixt $3.698 cardinal and $3.718 billion.

It besides targets non-GAAP operating income of $732 cardinal to $740 million, and net per stock (EPS) of $3.78 to $3.82.

For the 2nd quarter, revenues are expected to extremity astatine $797 cardinal to $799 million, portion non-GAAP income from operations is targeted astatine $172 cardinal to $174 million. EPS is projected astatine $0.89 to $0.90.

“Our outstanding Q1 results show the beardown request we are experiencing for our Zero Trust and AI Security platform. With implicit $3.2 cardinal successful Annual Recurring Revenue, increasing implicit 25 percent year-over-year, and Rule-of-78 performance, I’m precise pleased to stock that an expanding fig of customers are relying connected our level for amended security, little operational costs, and reduced IT complexity,” said Zscaler, Inc. (NASDAQ:ZS) Chairman and CEO Jay Chaudhry.

“Zero Trust information is the linchpin for AI-Security, and Zscaler pioneered Zero Trust information with our cloud-native switchboard architecture. By integrating the precocious acquired SPLX exertion with our broad AI Security offerings, we are expanding our best-in-class AI Security solutions to lick emerging information challenges,” helium noted.

While we admit the imaginable of ZS arsenic an investment, our condemnation lies successful the content that immoderate AI stocks clasp greater committedness for delivering higher returns and person constricted downside risk. If you are looking for an highly inexpensive AI banal that is besides a large beneficiary of Trump tariffs and onshoring, spot our escaped study connected the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double successful 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This nonfiction is primitively published at Insider Monkey.