Zscaler (NASDAQ:ZS) Releases FY 2026 Earnings Guidance

Zscaler (NASDAQ:ZS) updated its FY 2026 earnings guidance on Tuesday. 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.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on the stock. Canaccord Genuity Group dropped their price objective on shares of Zscaler from $340.00 to $275.00 and set a “buy” rating for the company in a research note on Friday, February 27th. Barclays set a $220.00 price objective on shares of Zscaler in a research note on Thursday, February 19th. Needham & Company LLC dropped their price objective on shares of Zscaler from $310.00 to $180.00 and set a “buy” rating for the company in a research note on Friday, February 27th. HC Wainwright raised shares of Zscaler from a “buy” rating to a “buy” rating in a research note on Monday, May 18th. Finally, UBS Group restated a “buy” rating on shares of Zscaler in a research report on Wednesday, May 20th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating, eight have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $261.26.

Zscaler Trading Up 1.2%

Shares of ZS traded up $2.23 during trading hours on Tuesday, hitting $184.60. 8,152,230 shares of the stock were exchanged, compared to its average volume of 2,869,938. Zscaler has a fifty-two week low of $114.63 and a fifty-two week high of $336.99. The company has a debt-to-equity ratio of 0.78, a current ratio of 1.90 and a quick ratio of 1.90. The business has a 50-day moving average of $145.14 and a 200-day moving average of $193.63. The firm has a market capitalization of $29.68 billion, a P/E ratio of -439.52 and a beta of 0.96.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings data on Tuesday, May 26th. The company reported $1.08 earnings per share for the quarter, topping the consensus estimate of $1.00 by $0.08. Zscaler had a negative net margin of 2.25% and a positive return on equity of 0.06%. The company had revenue of $850.48 million during the quarter, compared to analysts’ expectations of $835.60 million. 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 expect that Zscaler will post -0.03 EPS for the current year.

Insider Activity at Zscaler

In other news, Director James A. Beer sold 177 shares of the stock in a transaction on Wednesday, March 18th. The shares were sold at an average price of $153.53, for a total transaction of $27,174.81. Following the completion of the sale, the director directly owned 4,384 shares in the company, valued at $673,075.52. This represents a 3.88% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Adam Geller sold 2,094 shares of the stock in a transaction on Wednesday, March 18th. The stock was sold at an average price of $153.53, for a total transaction of $321,491.82. Following the sale, the insider owned 46,949 shares of the company’s stock, valued at approximately $7,208,079.97. This trade represents a 4.27% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 12,130 shares of company stock valued at $1,892,487 over the last 90 days. 17.20% of the stock is owned by company insiders.

More Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler reported third-quarter fiscal 2026 revenue of $850.5 million, up 25% year over year, with ARR also rising 25% to $3.525 billion. Free cash flow improved to $136 million, highlighting solid operating momentum. Article Title
• Positive Sentiment: The company issued FY 2026 EPS guidance of $4.10-$4.11, well above Wall Street’s $3.21 estimate, signaling management confidence in earnings growth. Article Title
• Positive Sentiment: Zscaler also guided Q4 EPS to $1.08-$1.09, ahead of the $0.83 consensus, reinforcing the upbeat outlook heading into the next quarter. Article Title
• Neutral Sentiment: Coverage ahead of earnings highlighted broader strength in cybersecurity stocks and AI-related demand, which helped set a favorable tone for ZS. Article Title
• Negative Sentiment: Some commentary noted Zscaler’s premium valuation still requires stronger execution to fully justify the stock’s price, which could limit upside if growth slows. Article Title

Institutional Investors Weigh In On Zscaler

A number of large investors have recently bought and sold shares of ZS. Price T Rowe Associates Inc. MD grew its holdings in Zscaler by 43.3% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,572,358 shares of the company’s stock worth $578,576,000 after purchasing an additional 777,414 shares during the period. AQR Capital Management LLC grew its holdings in Zscaler by 61.8% in the third 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. Alyeska Investment Group L.P. acquired a new stake in Zscaler in the third quarter worth $109,440,000. First Trust Advisors LP grew its holdings in Zscaler by 15.9% in the fourth quarter. First Trust Advisors LP now owns 2,582,897 shares of the company’s stock worth $580,945,000 after purchasing an additional 354,763 shares during the period. Finally, Morgan Stanley grew its holdings in Zscaler by 25.4% in the fourth 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. 46.45% of the stock is currently owned by institutional investors and hedge funds.

About Zscaler

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.