ZS · PEAD ↓ 100

Zscaler reported Q3 FY2026 EPS of $1.08 on 2026-05-26, beating the $1.01 consensus by $0.07 (+6.9%).

Print-day reaction was a modest +1.2% versus the prior close, with shares barely budging despite the earnings beat. The overnight gap into T+1 open was a severe -25.7%, signalling a sharp after-hours reversal that overwhelmed the initial positive print-day move. Over the subsequent two trading sessions the price drifted an additional +10.5%, a partial recovery that failed to recoup the overnight collapse. Cumulative abnormal return of -24.8% versus SPY.US puts this firmly in PEAD short territory; drift confirmed the overnight rejection, and the holding window runs through 2026-08-21.