SAN DIEGO, June 01, 2026 (GLOBE NEWSWIRE) -- Johnson Fistel, PLLP is investigating whether Zscaler, Inc. (NASDAQ: ZS) or certain of its executive officers violated federal securities laws. The investigation focuses on investors’ losses and whether they may be recovered under federal securities laws.
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Background of the Investigation
On May 26, 2026, Zscaler reported its third quarter fiscal 2026 financial results and lowered its free cash flow margin expectations. The Company stated that it now expected fiscal 2026 free cash flow margin of approximately 22.8% to 23.3%, down from its prior expectations of approximately 26.5% to 27%.
Zscaler further stated that the revised free cash flow outlook reflected capital expenditures in the high single digits as a percentage of revenue, compared to its prior expectation of capital expenditures in the mid-single digits as a percentage of revenue. The Company also stated that it was pulling forward certain investments previously expected to be made in fiscal 2027 into the fourth quarter of fiscal 2026.
Following these disclosures, Zscaler’s stock declined sharply, damaging investors.
In light of these disclosures, Johnson Fistel is investigating whether Zscaler complied with state and federal laws, including the federal securities laws. If you suffered losses, or are a long-term holder of Zscaler stock, contact Johnson Fistel.
About Johnson Fistel, PLLP | Top Law Firm – Securities Fraud & Investor Rights
Johnson Fistel, PLLP is a nationally recognized shareholder rights law firm with offices in California, New York, Georgia, Idaho, and Colorado. The firm represents individual and institutional investors in shareholder class actions and derivative lawsuits. Johnson Fistel has been recognized as one of the Top 10 Plaintiff Law Firms by ISS Securities Class Action Services. In 2024, the firm recovered approximately $90,725,000 for investors.
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Johnson Fistel, PLLP
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San Diego, CA 92101
James Baker, Investor Relations – or – Frank J. Johnson, Esq.
(619) 814-4471 | jimb@johnsonfistel.com | fjohnson@johnsonfistel.com
