Zscaler (NASDAQ:ZS) Issues Earnings Results, Misses Estimates By $0.75 EPS

Zscaler (NASDAQ:ZS) announced its quarterly earnings results on Wednesday. The company reported ($0.06) EPS for the quarter, missing the consensus estimate of $0.69 by ($0.75), Zacks reports. Zscaler had a negative net margin of 1.58% and a negative return on equity of 0.75%. Zscaler updated its Q3 2025 guidance to 0.750-0.760 EPS and its FY 2025 guidance to 3.040-3.090 EPS.

Zscaler Price Performance

ZS traded up $2.63 during trading on Wednesday, reaching $196.45. 3,459,433 shares of the stock were exchanged, compared to its average volume of 1,867,949. Zscaler has a 1 year low of $153.45 and a 1 year high of $217.84. The company has a market capitalization of $30.14 billion, a price-to-earnings ratio of -785.80 and a beta of 0.89. The business’s 50 day moving average price is $195.83 and its two-hundred day moving average price is $191.54.

Analyst Ratings Changes

ZS has been the subject of a number of research reports. Barclays reissued an “overweight” rating on shares of Zscaler in a research report on Wednesday. Jefferies Financial Group boosted their target price on Zscaler from $225.00 to $245.00 and gave the company a “buy” rating in a report on Tuesday, November 26th. Needham & Company LLC restated a “buy” rating and set a $240.00 price target on shares of Zscaler in a research note on Wednesday. BMO Capital Markets boosted their price objective on Zscaler from $197.00 to $222.00 and gave the company an “outperform” rating in a research note on Tuesday, December 3rd. Finally, Guggenheim restated a “neutral” rating on shares of Zscaler in a research report on Tuesday, December 3rd. Ten equities research analysts have rated the stock with a hold rating and twenty-three have assigned a buy rating to the stock. According to data from MarketBeat, Zscaler presently has an average rating of “Moderate Buy” and an average price target of $226.94.

Insider Activity

In related news, insider Syam Nair sold 3,682 shares of the company’s stock in a transaction that occurred on Tuesday, December 17th. The stock was sold at an average price of $200.32, for a total value of $737,578.24. Following the sale, the insider now owns 142,866 shares of the company’s stock, valued at approximately $28,618,917.12. This represents a 2.51 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Remo Canessa sold 3,703 shares of the firm’s stock in a transaction on Tuesday, December 17th. The stock was sold at an average price of $200.32, for a total value of $741,784.96. Following the transaction, the chief financial officer now directly owns 220,635 shares of the company’s stock, valued at $44,197,603.20. The trade was a 1.65 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 10,248 shares of company stock worth $2,052,879 over the last 90 days. 18.10% of the stock is currently owned by corporate insiders.

Zscaler Company Profile

Zscaler, Inc operates as a cloud security company worldwide. The company offers Zscaler Internet Access solution that provides users, workloads, IoT, and OT devices secure access to externally managed applications, including software-as-a-service (SaaS) applications and internet destinations; and Zscaler Private Access solution, which is designed to provide access to managed applications hosted internally in data centers, and private or public clouds.