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 guidance of 3.780-3.820 for the period, compared to the consensus earnings per share estimate of 2.190. The company issued revenue guidance of $3.7 billion-$3.7 billion, compared to the consensus revenue estimate of $3.3 billion. Zscaler also updated its Q2 2026 guidance to 0.890-0.900 EPS.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on ZS shares. B. Riley initiated coverage on Zscaler in a research report on Tuesday, August 26th. They issued a “neutral” rating and a $275.00 price objective on the stock. UBS Group cut their price target on shares of Zscaler from $365.00 to $350.00 and set a “buy” rating on the stock in a report on Wednesday, September 3rd. Evercore ISI increased their price target on shares of Zscaler from $290.00 to $320.00 and gave the company an “outperform” rating in a research report on Wednesday, September 3rd. Cantor Fitzgerald reaffirmed an “overweight” rating and issued a $340.00 price objective on shares of Zscaler in a research report on Wednesday, September 3rd. Finally, KeyCorp boosted their target price on shares of Zscaler from $345.00 to $350.00 and gave the company an “overweight” rating in a research note on Wednesday, September 3rd. One analyst has rated the stock with a Strong Buy rating, thirty-one have given 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, the stock presently has an average rating of “Moderate Buy” and an average target price of $316.65.

Zscaler Stock Performance

NASDAQ:ZS traded up $9.38 on Tuesday, reaching $289.73. 3,126,276 shares of the company’s stock were exchanged, compared to its average volume of 1,967,999. The firm has a market cap of $45.86 billion, a price-to-earnings ratio of -1,073.07 and a beta of 1.06. The company has a debt-to-equity ratio of 0.95, a current ratio of 2.01 and a quick ratio of 2.01. The stock has a fifty day simple moving average of $305.66 and a 200-day simple moving average of $291.08. Zscaler has a 52 week low of $164.78 and a 52 week high of $336.99.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings results on Tuesday, November 25th. The company reported $0.96 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.85 by $0.11. The company had revenue of $788.11 million for the quarter, compared to analyst estimates of $773.86 million. Zscaler had a negative net margin of 1.55% and a negative return on equity of 0.47%. Zscaler has set its FY 2026 guidance at 3.780-3.820 EPS. Q2 2026 guidance at 0.890-0.900 EPS. As a group, sell-side analysts predict that Zscaler will post -0.1 earnings per share for the current year.

Insider Buying and Selling

In other news, EVP Raj Judge sold 4,524 shares of the firm’s stock in a transaction on Tuesday, September 16th. The stock was sold at an average price of $280.70, for a total value of $1,269,886.80. Following the completion of the transaction, the executive vice president directly owned 73,832 shares of the company’s stock, valued at $20,724,642.40. This trade represents a 5.77% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Robert Schlossman sold 3,200 shares of Zscaler stock in a transaction on Friday, October 24th. The shares were sold at an average price of $325.00, for a total value of $1,040,000.00. Following the completion of the transaction, the insider owned 80,086 shares of the company’s stock, valued at approximately $26,027,950. This trade represents a 3.84% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 43,084 shares of company stock worth $12,446,825. Insiders own 18.10% of the company’s stock.

Hedge Funds Weigh In On Zscaler

Large investors have recently modified their holdings of the company. Binnacle Investments Inc purchased a new position in Zscaler during the third quarter valued at approximately $25,000. Front Row Advisors LLC grew its position in shares of Zscaler by 141.3% during the 3rd quarter. Front Row Advisors LLC now owns 386 shares of the company’s stock valued at $116,000 after purchasing an additional 226 shares in the last quarter. Parallel Advisors LLC grew its position in shares of Zscaler by 10.9% during the 3rd quarter. Parallel Advisors LLC now owns 397 shares of the company’s stock valued at $119,000 after purchasing an additional 39 shares in the last quarter. State of Wyoming bought a new position in shares of Zscaler in the second quarter worth $129,000. Finally, Smartleaf Asset Management LLC raised its position in shares of Zscaler by 7.5% in the second quarter. Smartleaf Asset Management LLC now owns 648 shares of the company’s stock worth $204,000 after buying an additional 45 shares in the last quarter. 46.45% of the stock is currently owned by institutional investors.

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.