Zscaler (NASDAQ:ZS) Posts Earnings Results, Beats Expectations By $0.11 EPS

Zscaler (NASDAQ:ZS) issued its quarterly earnings results on Tuesday. The company reported $0.96 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.85 by $0.11, FiscalAI reports. The business had revenue of $788.11 million for the quarter, compared to analyst estimates of $773.86 million. Zscaler had a negative return on equity of 0.47% and a negative net margin of 1.55%. Zscaler updated its FY 2026 guidance to 3.780-3.820 EPS and its Q2 2026 guidance to 0.890-0.900 EPS.

Zscaler Trading Up 3.3%

Zscaler stock traded up $9.38 during mid-day trading on Tuesday, hitting $289.73. 2,899,150 shares of the company’s stock were exchanged, compared to its average volume of 1,964,253. The company’s 50 day simple moving average is $305.66 and its 200-day simple moving average is $291.08. The company has a quick ratio of 2.01, a current ratio of 2.01 and a debt-to-equity ratio of 0.95. The firm has a market capitalization of $45.86 billion, a P/E ratio of -1,073.07 and a beta of 1.06. Zscaler has a fifty-two week low of $164.78 and a fifty-two week high of $336.99.

Analyst Ratings Changes

Several analysts have weighed in on ZS shares. Stifel Nicolaus boosted their price objective on Zscaler from $295.00 to $330.00 and gave the stock a “buy” rating in a report on Wednesday, September 3rd. Barclays boosted their price target on shares of Zscaler from $320.00 to $350.00 and gave the stock an “overweight” rating in a research note on Wednesday, November 12th. Zacks Research raised shares of Zscaler from a “strong sell” rating to a “hold” rating in a research note on Thursday, October 2nd. Weiss Ratings reiterated a “sell (d-)” rating on shares of Zscaler in a research report on Wednesday, October 8th. Finally, BMO Capital Markets increased their price target on Zscaler from $295.00 to $315.00 and gave the company an “outperform” rating in a research note on Wednesday, September 3rd. One equities research analyst has rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, Zscaler has a consensus rating of “Moderate Buy” and an average target price of $316.65.

Insiders Place Their Bets

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

Institutional Investors Weigh In On Zscaler

Large investors have recently made changes to their positions in the stock. Binnacle Investments Inc acquired a new stake in shares of Zscaler during the third quarter worth $25,000. Front Row Advisors LLC boosted its stake in Zscaler by 141.3% in the 3rd quarter. Front Row Advisors LLC now owns 386 shares of the company’s stock worth $116,000 after purchasing an additional 226 shares during the period. Parallel Advisors LLC increased its holdings in Zscaler by 10.9% during the 3rd quarter. Parallel Advisors LLC now owns 397 shares of the company’s stock worth $119,000 after purchasing an additional 39 shares in the last quarter. State of Wyoming acquired a new stake in shares of Zscaler in the 2nd quarter valued at about $129,000. Finally, Smartleaf Asset Management LLC raised its stake in shares of Zscaler by 7.5% in the 2nd quarter. Smartleaf Asset Management LLC now owns 648 shares of the company’s stock valued at $204,000 after purchasing an additional 45 shares during the period. Institutional investors own 46.45% of the company’s stock.

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.