Zscaler (NASDAQ:ZS) Issues Q4 2026 Earnings Guidance

Zscaler (NASDAQ:ZS) updated its fourth quarter 2026 earnings guidance on Tuesday. The company provided earnings per share guidance of 1.080-1.090 for the period, compared to the consensus earnings per share estimate of 0.830. The company issued revenue guidance of $875.0 million-$878.0 million, compared to the consensus revenue estimate of $878.5 million. Zscaler also updated its FY 2026 guidance to 4.100-4.110 EPS.

Zscaler Stock Up 1.2%

Shares of ZS stock opened at $184.60 on Wednesday. The company has a current ratio of 1.90, a quick ratio of 1.90 and a debt-to-equity ratio of 0.78. Zscaler has a twelve month low of $114.63 and a twelve month high of $336.99. The stock has a 50 day moving average of $145.75 and a 200 day moving average of $192.65. The stock has a market cap of $29.68 billion, a P/E ratio of -439.52 and a beta of 0.96.

Zscaler (NASDAQ:ZS) last issued its quarterly earnings data on Tuesday, May 26th. The company reported $1.08 EPS for the quarter, beating the consensus estimate of $1.01 by $0.07. Zscaler had a positive return on equity of 0.06% and a negative net margin of 2.25%.The company had revenue of $850.48 million for the quarter, compared to analyst estimates of $835.60 million. During the same period last year, the company earned $0.84 earnings per share. Zscaler’s quarterly revenue was up 25.4% compared to the same quarter last year. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. As a group, sell-side analysts expect that Zscaler will post -0.03 EPS for the current year.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on ZS. B. Riley Financial raised Zscaler from a “neutral” rating to a “buy” rating and decreased their price target for the company from $275.00 to $225.00 in a research note on Monday, May 18th. Stephens decreased their price target on Zscaler from $340.00 to $225.00 and set an “overweight” rating on the stock in a research note on Monday, February 23rd. The Goldman Sachs Group decreased their price target on Zscaler from $290.00 to $257.00 and set a “neutral” rating on the stock in a research note on Monday, March 2nd. Mizuho set a $185.00 price target on Zscaler in a research note on Wednesday. Finally, Oppenheimer decreased their price target on Zscaler from $280.00 to $250.00 and set an “outperform” rating on the stock in a research note on Tuesday, March 10th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating, eight have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Zscaler has a consensus rating of “Moderate Buy” and a consensus target price of $259.11.

Insider Activity

In other Zscaler news, insider Adam Geller sold 2,094 shares of the firm’s 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 completion of the transaction, 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 transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CFO Kevin Rubin sold 1,682 shares of Zscaler stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total value of $263,384.38. Following the completion of the sale, the chief financial officer directly owned 46,479 shares of the company’s stock, valued at approximately $7,278,146.61. This represents a 3.49% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 12,130 shares of company stock valued at $1,892,487 in the last 90 days. Insiders own 17.20% of the company’s stock.

Key Stories Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler reported fiscal Q3 revenue of $850.5 million, up 25% year over year, and EPS of $1.08, both ahead of estimates, showing continued execution and demand for its cloud security platform. Zscaler Announces Strong Third-Quarter Fiscal 2026 Results
• Positive Sentiment: The company raised full-year fiscal 2026 EPS guidance, signaling confidence in profitability despite ongoing investment in growth and AI security initiatives. ZS Q3 Earnings Call Flags Prudent Growth Outlook
• Positive Sentiment: B. Riley upgraded Zscaler to Buy from Neutral, citing product-line expansion and improving business momentum, though the firm lowered its price target. B.Riley Upgrades Zscaler (ZS) Rating to Buy Amid Product Line Expansion
• Neutral Sentiment: Zscaler continued to emphasize AI security as a growth driver, and commentary around record margins and recurring revenue suggests the long-term story remains intact. ZS Q3 Earnings Call Flags Prudent Growth Outlook
• Negative Sentiment: Investors reacted to weaker fourth-quarter revenue guidance and a lower free cash flow outlook, suggesting tougher near-term demand conditions and more cautious spending by customers. Zscaler sees downbeat quarterly revenue as competition heats up in cybersecurity market
• Negative Sentiment: Several reports noted that competition is heating up in cybersecurity, which is weighing on sentiment around Zscaler’s ability to sustain rapid growth and premium valuation. Zscaler tumbles as mixed guidance outshines strong Q3 results

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. Binnacle Investments Inc acquired a new position in shares of Zscaler in the third quarter worth about $25,000. AlphaCentric Advisors LLC acquired a new position in shares of Zscaler in the fourth quarter worth about $29,000. Mcguire Capital Advisors Inc. acquired a new position in shares of Zscaler in the fourth quarter worth about $32,000. Strive Financial Group LLC acquired a new position in shares of Zscaler in the fourth quarter worth about $39,000. Finally, Sumitomo Mitsui Financial Group Inc. lifted its stake in shares of Zscaler by 105.5% in the fourth quarter. Sumitomo Mitsui Financial Group Inc. now owns 215 shares of the company’s stock worth $49,000 after acquiring an additional 4,111 shares in the last quarter. Institutional investors and hedge funds own 46.45% of the company’s stock.

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.