Zscaler stock plummets on disappointing profit outlook

Shares of Zscaler (ZS) are plummeting after its guidance for the upcoming 2025 fiscal year disappointed investors. Morning Brief Hosts Brad Smith and Madison Mills break down the cloud security company's latest earnings and some of the tailwinds ahead for Zscaler as it seeks to regain investor favorability.

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This post was written by Melanie Riehl

Video Transcript

Time now for a look at our trending tickers on the Yahoo finance platform.

Let's start things off with ticker symbol, Zsz Scaler.

It's down around 17% this morning after the cloud security company offered disappointing profit guidance for the upcoming fiscal year.

Shares are reacting as we mentioned here, the company's revenue outlook though that's topped the consensus.

And then additionally, here as they're looking for and anticipating um this range of 604 million to $606 million in revenue.

That is essentially above what was the prior $603 million that was looked for by analyst.

Yeah, it's interesting Brad, because this is a stock that's already been under pressure.

It's down about 9% year to date though over the past year, it's up about 18% an analyst over at Barclays saying it's had a very oddly shaped year, but they are looking ahead to growth in the free cash flow space for the company.

So hopefully experiencing less macro pressures to come for the