Zscaler (NASDAQ:ZS) Announces Earnings Results, Beats Expectations By $0.08 EPS

Zscaler (NASDAQ:ZS) issued its earnings results on Tuesday. The company reported $1.08 EPS for the quarter, beating analysts’ consensus estimates of $1.00 by $0.08, FiscalAI reports. The firm had revenue of $850.48 million for the quarter, compared to analyst estimates of $835.60 million. Zscaler had a positive return on equity of 0.06% and a negative net margin of 2.25%. Zscaler updated its Q4 2026 guidance to 1.080-1.090 EPS and its FY 2026 guidance to 4.100-4.110 EPS.

Zscaler Stock Performance

Zscaler stock traded up $2.23 during mid-day trading on Tuesday, hitting $184.60. The company had a trading volume of 8,813,780 shares, compared to its average volume of 2,888,969. The company has a current ratio of 1.90, a quick ratio of 1.90 and a debt-to-equity ratio of 0.78. Zscaler has a 12-month low of $114.63 and a 12-month high of $336.99. The company’s fifty day moving average is $145.14 and its 200-day moving average is $193.63. The company has a market capitalization of $29.68 billion, a price-to-earnings ratio of -439.52 and a beta of 0.96.

Wall Street Analyst Weigh In

A number of brokerages recently commented on ZS. Rosenblatt Securities dropped their target price on Zscaler from $250.00 to $223.00 and set a “buy” rating on the stock in a research report on Monday, May 18th. Needham & Company LLC dropped their target price on Zscaler from $310.00 to $180.00 and set a “buy” rating on the stock in a research report on Friday, February 27th. Royal Bank Of Canada dropped their target price on Zscaler from $250.00 to $205.00 and set an “outperform” rating on the stock in a research report on Friday, February 27th. Barclays set a $220.00 target price on Zscaler in a research report on Thursday, February 19th. Finally, KeyCorp upped their target price on Zscaler from $160.00 to $190.00 and gave the company an “overweight” rating in a research report on Monday, May 18th. Two analysts have rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, eight have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $261.26.

Insiders Place Their Bets

In other Zscaler news, CFO Kevin Rubin sold 1,682 shares of the company’s stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total value of $263,384.38. Following the sale, the chief financial officer owned 46,479 shares in the company, valued at approximately $7,278,146.61. This represents a 3.49% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, insider Adam Geller sold 2,094 shares of the company’s stock in a transaction that occurred on Wednesday, March 18th. The stock was sold at an average price of $153.53, for a total value of $321,491.82. Following the completion of the sale, the insider owned 46,949 shares in the company, valued at approximately $7,208,079.97. This represents a 4.27% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 12,130 shares of company stock worth $1,892,487. Corporate insiders own 17.20% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. First Trust Advisors LP lifted its position in shares of Zscaler by 15.9% during 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 lifted its position in shares of Zscaler by 43.3% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 2,572,358 shares of the company’s stock valued at $578,576,000 after buying an additional 777,414 shares in the last quarter. State Street Corp lifted its position in shares of Zscaler by 3.4% during the 4th quarter. State Street Corp now owns 2,337,604 shares of the company’s stock valued at $525,774,000 after buying an additional 77,800 shares in the last quarter. AQR Capital Management LLC lifted its position in shares of Zscaler by 61.8% during the 3rd quarter. AQR Capital Management LLC now owns 1,941,571 shares of the company’s stock valued at $576,083,000 after buying an additional 741,756 shares in the last quarter. Finally, Morgan Stanley lifted its position in shares of Zscaler by 25.4% during the 4th quarter. Morgan Stanley now owns 1,557,640 shares of the company’s stock valued at $350,345,000 after buying an additional 315,498 shares in the last quarter. Hedge funds and other institutional investors own 46.45% of the company’s stock.

Zscaler News Roundup

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler reported third-quarter fiscal 2026 revenue of $850.5 million, up 25% year over year, with ARR also rising 25% to $3.525 billion. Free cash flow improved to $136 million, highlighting solid operating momentum. Article Title
• Positive Sentiment: The company issued FY 2026 EPS guidance of $4.10-$4.11, well above Wall Street’s $3.21 estimate, signaling management confidence in earnings growth. Article Title
• Positive Sentiment: Zscaler also guided Q4 EPS to $1.08-$1.09, ahead of the $0.83 consensus, reinforcing the upbeat outlook heading into the next quarter. Article Title
• Neutral Sentiment: Coverage ahead of earnings highlighted broader strength in cybersecurity stocks and AI-related demand, which helped set a favorable tone for ZS. Article Title
• Negative Sentiment: Some commentary noted Zscaler’s premium valuation still requires stronger execution to fully justify the stock’s price, which could limit upside if growth slows. Article Title

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.