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May 27, 2026 4:00 AM

Jim Cramer Warns Of 'Slowing Sales' As Zscaler Stock Crashes After Soft Q4 Guidance, Leadership Shakeup

CNBC's Jim Cramer warned investors of “slowing sales” ahead for Zscaler Inc. (NASDAQ:ZS) after the cybersecurity firm’s soft fourth-quarter revenue guidance sent shares tumbling.

Despite a strong third-quarter financial beat, the market focused squarely on cooling forward projections and sudden internal executive disruptions.

Cramer Reacts To Post-Earnings Plunge

Following the company's Tuesday evening release, Cramer flagged the cloud security provider’s deceleration, noting that immediate market enthusiasm faded as future metrics weighed on sentiment.

Investors reacted aggressively to the caution, sending Zscaler shares diving 20.78% to $146.24 in after-hours trading. The steep drop highlighted Wall Street’s sensitivity to forward-looking growth over past performance.

Oh boy, the Zscaler call was tough when it said two sales leaders left and it warned of slowing sales. The analysts, or at least most of the analysts, showed great respect to Jay and his team. But it didn't matter….

— Jim Cramer (@jimcramer) May 27, 2026

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