Zscaler stock declined 10.3% on February 23, 2026, due to two primary factors. First, the White House announced plans to raise global tariffs to 15%, effective immediately, which sparked broad market uncertainty and caused major stock indexes including the S&P 500 and Nasdaq to decline. Second, Anthropic released Claude Code Security, a tool designed to autonomously scan codebases for vulnerabilities and suggest software patches. This announcement caused concern among investors about potential disruption to the cybersecurity software industry from artificial intelligence advancements. The tool's ability to autonomously write, test, and refactor code raised questions about the long-term pricing power of traditional cybersecurity firms. Multiple analysts responded by reducing their price targets for Zscaler, though most maintained positive ratings. The company is scheduled to report Q2 fiscal 2026 earnings on February 26 after market close.
Read full analysisZscaler stock declined 10.3% on February 23, 2026, due to two primary factors. First, the White House announced plans to raise global tariffs to 15%, effective immediately, which sparked broad market uncertainty and caused major stock indexes including the S&P 500 and Nasdaq to decline. Second, Anthropic released Claude Code Security, a tool designed to autonomously scan codebases for vulnerabilities and suggest software patches. This announcement caused concern among investors about potential disruption to the cybersecurity software industry from artificial intelligence advancements. The tool's ability to autonomously write, test, and refactor code raised questions about the long-term pricing power of traditional cybersecurity firms. Multiple analysts responded by reducing their price targets for Zscaler, though most maintained positive ratings. The company is scheduled to report Q2 fiscal 2026 earnings on February 26 after market close.
Zscaler is a cloud-based cybersecurity company that provides zero trust network security, replacing traditional firewalls and VPNs with a cloud-native platform that secures internet traffic for enterprises. The company has recently expanded into browser security via its SquareX acquisition and flexible licensing through its Z-Flex program. Its core business — selling security software subscriptions to large enterprises — sits squarely in the crosshairs of the AI disruption narrative triggered by Anthropic's autonomous vulnerability-scanning tool, while a new tariff shock adds macro pressure ahead of its Q2 earnings report on February 26.