Zscaler sees downbeat quarterly revenue as competition heats up in cybersecurity market

[출처/시간] Reuters - 4:36 PM ET, 05/26/2026

May 26 (Reuters) - Zscaler forecast fourth-quarter revenue below estimates ?on Tuesday, signaling intensifying competition in ?the cybersecurity market as enterprises scrutinize ?spending on cloud security products, sending shares down 15% in extended trading.

* Despite the push to secure modern IT environments, Zscaler faces competition from larger rivals such as Palo Alto Networks , which are vying for more market share with their own platform offerings.

* Zscaler primarily competes in the Secure ?Access Service Edge (SASE) market, which combines networking and ?security ?into a single platform to connect users, devices ?and applications from anywhere.

* SASE is one of the fastest-growing segments of cybersecurity as cloud adoption driven by ?the ?artificial intelligence boom continues to transform network ?security architectures.

* The cloud-based security solution provider expects fourth-quarter ?revenue between $875 million and $878 million, below analysts' average estimate ?of $878.6 ?million, according to data compiled by ?LSEG.

* Zscaler expects adjusted profit between $1.08 ?and $1.09 per share in the fourth quarter, compared with estimates of $1.03.

* The company reported revenue of $850.5 ?million in the third ?quarter, above estimates of $835.4 ?million.

* Its third-quarter total operating expenses rose about ?25% to $687.5 million from $547.5 million a year ago. (Reporting by Harshita Mary Varghese ?in Bengaluru; Editing ?by Shreya Biswas)