New York, Feb 24, 2026, 09:55 EST — Regular session
- Zscaler clawed back some ground in early Tuesday trading, its shares ticking up after a sharp plunge the previous session.
- A fresh security tool linked to Anthropic’s Claude model set off a wave of selling in cybersecurity stocks.
- Zscaler’s quarterly numbers land Thursday, setting up the next key test.
Zscaler Inc shares bounced back roughly 2.6% to $146.98 during early Tuesday trading, following a sharp drop the previous session as investors looked ahead to the company’s quarterly report expected later this week.
Shares tumbled Monday along with other cybersecurity names, after Anthropic launched its Claude Code Security tool—designed to spot major vulnerabilities in open-source code and suggest fixes. “What you’re seeing today is really the continuation of a panic-driven, narrative-led selloff,” said Shrenik Kothari, security and infrastructure analyst at Robert W. Baird. He pointed out that Claude Code Security doesn’t cover real-time threats like active intrusions. Reuters
Investors remain jittery, still digesting the broader selloff sparked by tariff headlines and renewed nerves around the pace of AI investment changes in tech. According to Investopedia, U.S. stock futures inched up early Tuesday, trying to steady after Monday’s downturn.
Zscaler shares finished Monday off 10.31% at $143.28, hitting an intraday low of $141.56. Roughly 5.7 million shares changed hands, Yahoo Finance historical data show.
Stephens lowered its price target for Zscaler to $225, down from $340, but stuck with its “Overweight” rating. The analysts cited valuation concerns across the software sector, adding that this quarter might stabilize sentiment. Investing.com
Zscaler offers cloud-based security services, routing internet and application traffic through its own platform. The company pitches a “zero trust” approach, meaning no connection is trusted before verification. It also targets customers building out “SASE” environments—cloud-delivered network and security solutions.
But the story isn’t what matters next—execution is. Any sign in Zscaler’s results or forecast that drags growth, deal size, or customer spending back into doubt, and those Tuesday morning gains could evaporate fast.
Zscaler’s fiscal Q2 numbers land after Thursday’s closing bell. Investors are zeroed in on revenue, billings—which roughly track contracted but not-yet-recognized sales—and whatever the company says about the outlook.
