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

Shares of Zscaler stock opened at $126.41 on Thursday. Zscaler has a one year low of $114.63 and a one year high of $336.99. The firm has a market capitalization of $20.33 billion, a price-to-earnings ratio of -263.35 and a beta of 0.96. The business has a 50-day simple moving average of $145.21 and a 200 day simple moving average of $191.30. The company has a debt-to-equity ratio of 0.78, a current ratio of 1.90 and a quick ratio of 1.90.

Zscaler (NASDAQ:ZS) last issued its earnings results on Tuesday, May 26th. The company reported $1.08 EPS for the quarter, beating analysts’ consensus estimates of $1.01 by $0.07. Zscaler had a negative return on equity of 0.39% and a negative net margin of 2.44%.The business had revenue of $850.48 million during the quarter, compared to analyst estimates of $835.14 million. During the same period in the previous year, the company posted $0.84 EPS. The firm’s revenue was up 25.4% compared to the same quarter last year. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. On average, research analysts anticipate that Zscaler will post -0.03 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of analysts recently commented on ZS shares. Morgan Stanley decreased their target price on Zscaler from $155.00 to $145.00 and set an “equal weight” rating for the company in a research report on Wednesday. UBS Group decreased their target price on Zscaler from $260.00 to $225.00 and set a “buy” rating for the company in a research report on Wednesday. Sanford C. Bernstein decreased their target price on Zscaler from $228.00 to $224.00 and set an “outperform” rating for the company in a research report on Wednesday. KeyCorp lifted their price target on Zscaler from $160.00 to $190.00 and gave the company an “overweight” rating in a research note on Monday, May 18th. Finally, Royal Bank Of Canada cut their price target on Zscaler from $205.00 to $200.00 and set an “outperform” rating for the company in a research note on Wednesday. One research analyst has rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating, seven have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $216.62.

Insider Transactions at Zscaler

In other news, insider Adam Geller sold 2,094 shares of the business’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 transaction, the insider owned 46,949 shares in the company, valued at $7,208,079.97. The trade was a 4.27% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Raj Judge sold 2,488 shares of the business’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 $389,595.92. Following the completion of the transaction, the executive vice president owned 67,906 shares in the company, valued at $10,633,400.54. The trade was a 3.53% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 12,130 shares of company stock worth $1,892,487. 17.20% of the stock is owned by insiders.

More Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler posted strong Q3 results, with EPS of $1.08 topping estimates and revenue of $850.5 million beating consensus, while revenue grew 25% year over year. The company also highlighted solid demand for its Zero Trust and AI security offerings, along with strong ARR growth. Zscaler Announces Strong Third-Quarter Fiscal 2026 Results
• Positive Sentiment: Several analysts kept bullish ratings even after trimming price targets, citing Zscaler’s strong net new recurring revenue and long-term positioning in cybersecurity. Zscaler collapses over outlook; analysts lower targets but remain upbeat on strong NRR
• Neutral Sentiment: Management said it is taking a “prudent” approach to guidance amid memory, storage, and processor cost pressures, plus sales team changes and departures of senior sales leaders. Zscaler Issues ‘Prudent’ Outlook Amid Memory Shortage, Sales Team Changes — Update
• Negative Sentiment: The main driver of the selloff was Zscaler’s fiscal Q4 revenue outlook of $875 million to $878 million, which came in slightly below expectations and raised concerns about slowing growth and tougher competition in cybersecurity. Zscaler sees downbeat quarterly revenue as competition heats up in cybersecurity market
• Negative Sentiment: Reports of leadership turnover in sales, along with investor investigations and fraud-related alerts, may add near-term uncertainty and pressure sentiment around the stock. Shareholder Alert: Ademi LLP Investigates Claims of Securities Fraud against Zscaler, Inc.

Hedge Funds Weigh In On Zscaler

A number of hedge funds and other institutional investors have recently modified their holdings of the business. First Trust Advisors LP boosted its stake 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 worth $580,945,000 after buying an additional 354,763 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its stake in shares of Zscaler by 43.3% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 2,572,358 shares of the company’s stock worth $578,576,000 after buying an additional 777,414 shares during the last quarter. State Street Corp raised its holdings in shares of Zscaler by 3.4% in the 4th 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 period. AQR Capital Management LLC raised its holdings in shares of Zscaler by 61.8% in the 3rd 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 during the period. Finally, Morgan Stanley raised 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 worth $350,345,000 after purchasing an additional 315,498 shares during the period. Hedge funds and other institutional investors own 46.45% of the company’s stock.

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.