Zscaler (NASDAQ:ZS) Updates FY 2027 Earnings Guidance

Zscaler (NASDAQ:ZS) issued an update on its FY 2027 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 4.860-4.900 for the period, compared to the consensus earnings per share estimate of 3.700. The company issued revenue guidance of $3.9 billion-$3.9 billion, compared to the consensus revenue estimate of $3.9 billion. Zscaler also updated its Q1 2027 guidance to 1.150-1.160 EPS.

Wall Street Analyst Weigh In

ZS has been the topic of several research analyst reports. Canaccord Genuity Group reiterated a “buy” rating and issued a $210.00 price objective on shares of Zscaler in a report on Thursday, June 11th. Cantor Fitzgerald reiterated an “overweight” rating and set a $225.00 price target on shares of Zscaler in a research note on Wednesday, August 19th. UBS Group lowered their price objective on shares of Zscaler from $260.00 to $225.00 and set a “buy” rating for the company in a research note on Wednesday, May 27th. Stephens reaffirmed an “overweight” rating and set a $200.00 target price on shares of Zscaler in a research note on Friday, June 12th. Finally, BMO Capital Markets reduced their target price on shares of Zscaler from $210.00 to $178.00 and set an “outperform” rating on the stock in a report on Wednesday, May 27th. Thirty-four equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Zscaler has an average rating of “Moderate Buy” and an average price target of $213.10.

Zscaler Stock Up 2.9%

Shares of ZS traded up $5.07 during midday trading on Thursday, hitting $177.80. The company had a trading volume of 8,161,736 shares, compared to its average volume of 3,349,032. The company’s 50-day simple moving average is $159.43 and its 200-day simple moving average is $150.39. The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.86 and a current ratio of 1.86. The firm has a market capitalization of $28.75 billion, a P/E ratio of -370.41, a P/E/G ratio of 104.98 and a beta of 0.95. Zscaler has a 1 year low of $114.63 and a 1 year high of $336.99.

Insider Activity

In related news, insider Robert Schlossman sold 3,146 shares of Zscaler stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $126.43, for a total value of $397,748.78. Following the completion of the transaction, the insider owned 69,366 shares in the company, valued at $8,769,943.38. The trade was a 4.34% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Jagtar Chaudhry sold 2,878 shares of the business’s stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total transaction of $363,865.54. Following the transaction, the chief executive officer owned 343,038 shares of the company’s stock, valued at $43,370,294.34. This trade represents a 0.83% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 16,772 shares of company stock worth $2,139,799 in the last ninety days. 17.20% of the stock is owned by insiders.

More Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Revenue and ARR beat expectations: Fiscal Q4 revenue rose 25% year over year to $898.2 million, exceeding the roughly $877 million consensus estimate. Annual recurring revenue also increased 25% to $3.77 billion, supported by strong large-deal activity, non-seat-based products and the Red Canary acquisition. Zscaler Announces Strong Fourth Quarter and Fiscal 2026 Financial Results
• Positive Sentiment: Adjusted earnings topped estimates: Non-GAAP earnings were $1.19 per diluted share, up from $0.89 a year earlier and above the $1.09 consensus. The company also reported a record 24% non-GAAP operating margin. The reported GAAP loss was $0.02 per share, which likely explains conflicting headlines citing a $0.14 EPS figure. Zscaler stock soars on earnings beat, upbeat guidance
• Positive Sentiment: Guidance exceeded expectations: Zscaler forecast first-quarter fiscal 2027 revenue of $935 million to $939 million, with adjusted EPS of $1.15 to $1.16. Full-year revenue guidance of $3.908 billion to $3.938 billion and ARR guidance of $4.396 billion to $4.426 billion point to continued growth, while management highlighted rising demand for AI and agentic-security tools. Zscaler beats sales expectations
• Positive Sentiment: Cybersecurity positioning remains favorable: Coverage of a Microsoft Exchange vulnerability highlighted Zscaler’s zero-trust platform as a potential tool for helping organizations reduce exposure to emerging threats. Microsoft Exchange Vulnerability and Zscaler
• Neutral Sentiment: Broader software shares also gained as Treasury yields pulled back and investors responded positively to recent technology-sector results, providing an additional tailwind for ZS. Software shares rise
• Negative Sentiment: Profitability and restructuring risks remain: Zscaler posted a $3.4 million GAAP net loss for Q4 and announced plans to eliminate approximately 3% of its workforce while reallocating resources toward AI and growth initiatives. Quarterly free-cash-flow margin fell to 7% from 24%, largely because of significantly higher capital expenditures and internal-use software spending. Zscaler Loss Narrows as Revenue Soars

Hedge Funds Weigh In On Zscaler

Several hedge funds have recently added to or reduced their stakes in the stock. First Trust Advisors LP boosted its holdings in shares of Zscaler by 15.9% in the 4th quarter. First Trust Advisors LP now owns 2,582,897 shares of the company’s stock valued at $580,945,000 after buying an additional 354,763 shares in the last quarter. Price T Rowe Associates Inc. MD boosted its stake in Zscaler by 43.3% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,572,358 shares of the company’s stock valued at $578,576,000 after acquiring an additional 777,414 shares in the last quarter. State Street Corp grew its holdings in shares of Zscaler by 3.4% during the fourth quarter. State Street Corp now owns 2,337,604 shares of the company’s stock worth $525,774,000 after purchasing an additional 77,800 shares during the last quarter. AQR Capital Management LLC increased its position in shares of Zscaler by 61.8% during the third quarter. AQR Capital Management LLC now owns 1,941,571 shares of the company’s stock worth $576,083,000 after purchasing an additional 741,756 shares in the last quarter. Finally, Morgan Stanley lifted its holdings in shares of Zscaler by 25.4% in the 4th quarter. Morgan Stanley now owns 1,557,640 shares of the company’s stock valued at $350,345,000 after purchasing an additional 315,498 shares during the last quarter. 46.45% of the stock is currently owned by hedge funds and other institutional investors.

Zscaler Company Profile

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.