Zscaler (NASDAQ:ZS) Releases FY 2026 Earnings Guidance

Zscaler (NASDAQ:ZS) issued an update on its FY 2026 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of 4.100-4.110 for the period, compared to the consensus estimate of 3.210. The company issued revenue guidance of $3.3 billion-$3.3 billion, compared to the consensus revenue estimate of $3.3 billion. Zscaler also updated its Q4 2026 guidance to 1.080-1.090 EPS.

Zscaler Stock Performance

NASDAQ ZS opened at $184.60 on Wednesday. The company’s 50 day moving average is $145.75 and its 200-day moving average is $192.65. Zscaler has a 12-month low of $114.63 and a 12-month high of $336.99. The company has a quick ratio of 1.90, a current ratio of 1.90 and a debt-to-equity ratio of 0.78. The firm has a market cap of $29.68 billion, a P/E ratio of -439.52 and a beta of 0.96.

Zscaler (NASDAQ:ZS) last posted its earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share for the quarter, topping analysts’ consensus estimates of $1.01 by $0.07. The business had revenue of $850.48 million for the quarter, compared to analyst estimates of $835.60 million. Zscaler had a negative net margin of 2.25% and a positive return on equity of 0.06%. Zscaler’s revenue was up 25.4% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.84 EPS. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. Sell-side analysts predict that Zscaler will post -0.03 earnings per share for the current year.

Analysts Set New Price Targets

Several research firms have recently commented on ZS. Cantor Fitzgerald reaffirmed an “overweight” rating on shares of Zscaler in a research report on Wednesday, May 20th. Robert W. Baird dropped their target price on shares of Zscaler from $360.00 to $300.00 and set an “outperform” rating for the company in a research report on Monday, February 23rd. UBS Group reaffirmed a “buy” rating on shares of Zscaler in a research report on Wednesday, May 20th. JPMorgan Chase & Co. dropped their target price on shares of Zscaler from $354.00 to $267.00 and set an “overweight” rating for the company in a research report on Friday, February 20th. Finally, Berenberg Bank dropped their target price on shares of Zscaler from $390.00 to $320.00 and set a “buy” rating for the company in a research report on Friday, February 27th. Two research analysts have rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating, eight have issued a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $259.11.

Insider Buying and Selling at Zscaler

In other news, insider Adam Geller sold 2,094 shares of the firm’s stock in a transaction dated Wednesday, March 18th. The shares were sold at an average price of $153.53, for a total transaction of $321,491.82. Following the sale, the insider owned 46,949 shares of the company’s stock, valued at $7,208,079.97. This trade represents a 4.27% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Robert Schlossman sold 2,263 shares of the firm’s stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total transaction of $354,363.17. Following the sale, the insider directly owned 72,390 shares in the company, valued at approximately $11,335,550.10. The trade was a 3.03% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 12,130 shares of company stock worth $1,892,487 in the last 90 days. Insiders own 17.20% of the company’s stock.

Key Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler reported fiscal Q3 revenue of $850.5 million, up 25% year over year, and EPS of $1.08, both ahead of estimates, showing continued execution and demand for its cloud security platform. Zscaler Announces Strong Third-Quarter Fiscal 2026 Results
• Positive Sentiment: The company raised full-year fiscal 2026 EPS guidance, signaling confidence in profitability despite ongoing investment in growth and AI security initiatives. ZS Q3 Earnings Call Flags Prudent Growth Outlook
• Positive Sentiment: B. Riley upgraded Zscaler to Buy from Neutral, citing product-line expansion and improving business momentum, though the firm lowered its price target. B.Riley Upgrades Zscaler (ZS) Rating to Buy Amid Product Line Expansion
• Neutral Sentiment: Zscaler continued to emphasize AI security as a growth driver, and commentary around record margins and recurring revenue suggests the long-term story remains intact. ZS Q3 Earnings Call Flags Prudent Growth Outlook
• Negative Sentiment: Investors reacted to weaker fourth-quarter revenue guidance and a lower free cash flow outlook, suggesting tougher near-term demand conditions and more cautious spending by customers. Zscaler sees downbeat quarterly revenue as competition heats up in cybersecurity market
• Negative Sentiment: Several reports noted that competition is heating up in cybersecurity, which is weighing on sentiment around Zscaler’s ability to sustain rapid growth and premium valuation. Zscaler tumbles as mixed guidance outshines strong Q3 results

Institutional Trading of Zscaler

A number of institutional investors have recently made changes to their positions in ZS. Sunbelt Securities Inc. boosted its holdings in shares of Zscaler by 92.9% in the fourth quarter. Sunbelt Securities Inc. now owns 3,755 shares of the company’s stock worth $845,000 after buying an additional 1,808 shares during the last quarter. Kovitz Investment Group Partners LLC boosted its holdings in shares of Zscaler by 618.0% in the fourth quarter. Kovitz Investment Group Partners LLC now owns 6,785 shares of the company’s stock worth $1,526,000 after buying an additional 5,840 shares during the last quarter. Mcguire Capital Advisors Inc. purchased a new position in shares of Zscaler in the fourth quarter worth approximately $32,000. Invesco Ltd. boosted its holdings in shares of Zscaler by 13.8% in the fourth quarter. Invesco Ltd. now owns 1,469,657 shares of the company’s stock worth $330,555,000 after buying an additional 178,692 shares during the last quarter. Finally, Corient Private Wealth LLC boosted its holdings in shares of Zscaler by 70.4% in the fourth quarter. Corient Private Wealth LLC now owns 53,981 shares of the company’s stock worth $12,141,000 after buying an additional 22,299 shares during the last quarter. Hedge funds and other institutional investors own 46.45% of the company’s stock.

About Zscaler

Zscaler is a cloud security company that delivers a cloud-native platform to protect users, applications and data as organizations move away from traditional, network-centric security architectures. The company focuses on a zero trust approach that assumes no implicit trust for users or devices, providing secure access to the internet, SaaS applications and private applications regardless of where users are located. Zscaler positions its services as an alternative to legacy appliances and site-centric VPNs, aiming to simplify security while enabling modern, distributed workforces.

Key offerings are built around the Zscaler Zero Trust Exchange, a multi-tenant cloud platform that enforces security and access policies in-line.