Schall, Brown & Schwartz Investigates Zscaler Over Q3 2026 Revenue Miss and CRO Departure

Schall, Brown & Schwartz LLP is investigating Zscaler, Inc. for possible violations of the securities laws on behalf of investors, the firm said in a Business Wire announcement. The investigation concerns whether Zscaler issued false or misleading statements or withheld information pertinent to investors.

What the Zscaler Investigation Examines

Zscaler reported its Q3 2026 financial results on May 26, 2026, projecting current-quarter revenues that fell below analyst expectations. Shares of Zscaler fell by more than 31.5% on that news. On September 24, 2026, the company announced the departure of Chief Revenue Officer Mike Rich, and shares fell by more than 10% the next day.

The firm said it is examining whether Zscaler issued false or misleading statements or failed to disclose information pertinent to investors. Schall, Brown & Schwartz describes itself as a national shareholder rights litigation firm that represents investors in securities class action lawsuits. The announcement names founding partners Brian Schall, Andrew Brown and David Schwartz.

Zscaler's Scale and Recent Moves

Zscaler is a publicly traded cloud cybersecurity vendor that runs the Zero Trust Exchange platform, protecting users, workloads, branches and devices for large enterprises and government agencies through subscription-based annual contracts, according to akta.pro company records. The same records show the company was founded in 2008 and is headquartered in San Jose.

Zscaler acquired Symmetry Systems in May 2026 to embed identity and data access graph technology into the Zero Trust Exchange. In June 2026 the company decided to exit direct delivery for the sub-5,000-user commercial segment and entrust that book entirely to channel and GSI partners, refocusing internal field sales on enterprise accounts.

Earlier Zscaler Investor Claims

Pomerantz LLP said in October 2026 that it was investigating securities fraud claims on behalf of Zscaler investors, according to FinancialContent Business Page. A Pomerantz alert published on October 13, 2026 tied its investigation to Zscaler's Q3 2026 results, which missed guidance and preceded a 31.52% stock drop, and to Rich's departure, which preceded a 10.06% drop.

On October 21, 2026, D.A. Davidson began coverage of Zscaler with a Neutral rating and a $125 price target, TradingView reported. The analyst cited Zscaler's market leadership in Secure Access Service Edge alongside persistent competition and commoditization as headwinds.

Zscaler's Next Scheduled Disclosure

Zscaler has not stated a date for its next quarterly results in the announcement.