Equities Analysts Offer Predictions for Zscaler Q2 Earnings

Zscaler, Inc. (NASDAQ:ZS) – Investment analysts at KeyCorp issued their Q2 2026 earnings per share estimates for shares of Zscaler in a research note issued on Monday, January 12th. KeyCorp analyst E. Heath expects that the company will post earnings of ($0.05) per share for the quarter. KeyCorp currently has a “Overweight” rating and a $300.00 target price on the stock. The consensus estimate for Zscaler’s current full-year earnings is ($0.10) per share. KeyCorp also issued estimates for Zscaler’s Q3 2026 earnings at $0.01 EPS, Q4 2026 earnings at $0.03 EPS, FY2026 earnings at $0.01 EPS and FY2027 earnings at $0.22 EPS.

Zscaler (NASDAQ:ZS) last posted its earnings results on Tuesday, November 25th. The company reported $0.96 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.85 by $0.11. The business had revenue of $788.11 million for the quarter, compared to analyst estimates of $773.86 million. Zscaler had a negative net margin of 1.45% and a negative return on equity of 0.12%. Zscaler’s revenue was up 25.5% compared to the same quarter last year. During the same period last year, the business posted $0.77 EPS. Zscaler has set its FY 2026 guidance at 3.780-3.820 EPS and its Q2 2026 guidance at 0.890-0.900 EPS.

Several other equities research analysts have also weighed in on the stock. Bank of America lowered their target price on shares of Zscaler from $355.00 to $335.00 and set a “buy” rating on the stock in a report on Wednesday, November 26th. Zacks Research upgraded Zscaler from a “strong sell” rating to a “hold” rating in a research report on Thursday, October 2nd. Wedbush raised their price target on Zscaler from $330.00 to $350.00 and gave the company an “outperform” rating in a report on Monday, November 10th. Piper Sandler reduced their price objective on Zscaler from $280.00 to $260.00 and set a “neutral” rating on the stock in a research note on Monday, January 5th. Finally, Scotiabank lowered their target price on Zscaler from $334.00 to $320.00 and set a “sector outperform” rating for the company in a research note on Wednesday, November 26th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, Zscaler currently has an average rating of “Moderate Buy” and an average target price of $317.63.

Zscaler Trading Down 1.2%

Shares of ZS stock opened at $214.27 on Thursday. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.82 and a current ratio of 1.82. The firm has a fifty day moving average of $251.92 and a 200-day moving average of $279.05. Zscaler has a 52-week low of $164.78 and a 52-week high of $336.99. The stock has a market cap of $34.17 billion, a price-to-earnings ratio of -824.08, a P/E/G ratio of 4,157.99 and a beta of 1.02.

Insider Transactions at Zscaler

In related news, CEO Jagtar Singh Chaudhry sold 2,843 shares of the stock in a transaction that occurred on Tuesday, December 16th. The shares were sold at an average price of $230.82, for a total value of $656,221.26. Following the sale, the chief executive officer directly owned 347,857 shares in the company, valued at $80,292,352.74. This trade represents a 0.81% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Raj Judge sold 3,438 shares of the stock in a transaction on Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total transaction of $793,559.16. Following the completion of the sale, the executive vice president owned 70,394 shares in the company, valued at approximately $16,248,343.08. This trade represents a 4.66% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 22,550 shares of company stock valued at $5,511,509. 17.20% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Zscaler

A number of hedge funds and other institutional investors have recently made changes to their positions in ZS. Bessemer Group Inc. boosted its holdings in Zscaler by 3.2% during the third quarter. Bessemer Group Inc. now owns 1,021 shares of the company’s stock worth $306,000 after purchasing an additional 32 shares during the last quarter. Cox Capital Mgt LLC grew its holdings in shares of Zscaler by 0.6% in the 3rd quarter. Cox Capital Mgt LLC now owns 5,576 shares of the company’s stock valued at $1,671,000 after acquiring an additional 33 shares in the last quarter. Brookstone Capital Management increased its position in shares of Zscaler by 3.7% in the third quarter. Brookstone Capital Management now owns 936 shares of the company’s stock valued at $280,000 after acquiring an additional 33 shares during the last quarter. Wedbush Securities Inc. raised its holdings in Zscaler by 0.7% during the third quarter. Wedbush Securities Inc. now owns 5,129 shares of the company’s stock worth $1,537,000 after acquiring an additional 34 shares in the last quarter. Finally, Goldstream Capital Management Ltd raised its holdings in Zscaler by 0.3% during the third quarter. Goldstream Capital Management Ltd now owns 12,450 shares of the company’s stock worth $3,731,000 after acquiring an additional 34 shares in the last quarter. 46.45% of the stock is currently owned by institutional investors and hedge funds.

Zscaler News Roundup

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: KeyCorp reiterated an “Overweight” rating and a $300 price target while publishing updated quarterly and annual EPS forecasts that show Zscaler moving toward profitability (KeyCorp models: FY2026 ~ $0.01 EPS, FY2027 ~ $0.22 EPS). That upward multi-quarter/annual outlook supports a constructive medium-term earnings trajectory for the stock.
• Positive Sentiment: Partner win — WEI achieved Zscaler Premier Partner status, which should help channel reach and enterprise adoption of Zscaler’s zero‑trust and secure AI offerings, supporting revenue growth prospects. WEI Achieves Zscaler Premier Partner Status
• Positive Sentiment: Buy-side / media pieces continue to pitch Zscaler as a long-term growth story (deepening zero-trust demand and AI security tailwinds), which can support investor sentiment beyond near-term noise. See coverage arguing Zscaler is a top growth stock for the long term. Why Zscaler is a top growth stock Zacks: Top growth stock
• Neutral Sentiment: Market commentary noted a recent intraday decline in Zscaler shares (coverage pointing to the stock dipping more than the broader market), which reflects short-term trading pressure rather than new company-specific fundamentals. Zacks: Why Zscaler dipped
• Negative Sentiment: Citigroup trimmed its price target from $350 to $305 (still a “buy”), and that cut—despite remaining above current levels—can create downward pressure as some investors react to the lower upside projection. Citi lowers Zscaler price target

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.