ZS FY2027 guidance (~17%) is much lower than current growth (25%), leading to negative market reaction and underperformance vs peers.

The stock reversed course from its after-hours trading position following the results announcement, but Zscaler was lagging behind peers like CrowdStrike or Palo Alto Networks before these results.

It has not received the same level of attention on Wall Street as others in the field of cybersecurity.

Now, the company has achieved superiority in profits and revenues. The adjusted earnings per share amounted to $1.19. That was better than expected. Market expectations were for $1.09.

Revenues reached $898.19 million, also better than expected , with annual recurring revenue growth of 25%. This growth is also rising by 25% here. This indicates that demand for a " zero trust" platform is strong.

New security tools for AI agents, they say, are gaining early momentum. So, the profit margin was there. And as this continued until this morning, it seems that it was not enough for the investors.

Clearly, the overall weakness in the market today is not helping "Z Skiller". As for their annual recurring revenue growth and forecasts, their outlook for fiscal year 2027 points to growth of around 17%, which is slower than the 25% forecast.

They were conservative in the past. Well, Wall Street hasn't responded well to that before. And they are not responding well to it today either. If this is the actual course of action from now on.

In other words, growth is there, but there is a big difference between 17% and 25%. And so they decided not to care, and we will stick with those we love in the cybersecurity sector.

Yes. I mean, I was just looking at "Ze Skeller," by the way, just to go back to that for a moment, because I heard it was higher at one point. Do you know what I mean? I actually saw a strange deal above $200, $201 in after-hours trading .

But, as we noted, it is now at $170, and is actually falling, not far from its session low of $165.06.