Zscaler (NASDAQ:ZS) Updates Q1 2027 Earnings Guidance

Zscaler (NASDAQ:ZS) issued an update on its first quarter 2027 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 1.150-1.160 for the period, compared to the consensus estimate of 0.860. The company issued revenue guidance of $935.0 million-$939.0 million, compared to the consensus revenue estimate of $925.5 million. Zscaler also updated its FY 2027 guidance to 4.860-4.900 EPS.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on ZS shares. Wolfe Research reaffirmed an “outperform” rating and issued a $150.00 target price on shares of Zscaler in a research report on Thursday, June 11th. Stephens set a $215.00 price target on Zscaler in a research note on Friday. Wedbush restated an “outperform” rating and set a $220.00 price target on shares of Zscaler in a research report on Wednesday, June 10th. Weiss Ratings raised Zscaler from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Thursday, August 27th. Finally, Sanford C. Bernstein cut their price objective on Zscaler from $228.00 to $224.00 and set an “outperform” rating on the stock in a report on Wednesday, May 27th. Thirty-four equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Zscaler currently has a consensus rating of “Moderate Buy” and a consensus price target of $217.08.

Zscaler Price Performance

Shares of NASDAQ ZS opened at $169.80 on Friday. The stock has a market cap of $27.46 billion, a P/E ratio of -435.38, a P/E/G ratio of 104.65 and a beta of 0.95. 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 $161.26 and a two-hundred day moving average of $150.53. The company has a current ratio of 1.86, a quick ratio of 1.86 and a debt-to-equity ratio of 0.72.

Zscaler (NASDAQ:ZS) last announced its earnings results on Thursday, September 3rd. The company reported $1.19 EPS for the quarter, beating analysts’ consensus estimates of $1.09 by $0.10. Zscaler had a negative net margin of 1.88% and a positive return on equity of 1.29%. The business had revenue of $898.19 million for the quarter, compared to analysts’ expectations of $876.96 million. During the same period in the previous year, the company posted $0.89 EPS. The company’s quarterly revenue was up 24.9% on a year-over-year basis. Zscaler has set its FY 2027 guidance at 4.860-4.900 EPS and its Q1 2027 guidance at 1.150-1.160 EPS. On average, research analysts forecast that Zscaler will post 0.13 earnings per share for the current year.

Insider Buying and Selling at Zscaler

In related news, insider Adam Geller sold 2,817 shares of the firm’s stock in a transaction dated Monday, June 22nd. The stock was sold at an average price of $122.60, for a total transaction of $345,364.20. Following the transaction, the insider owned 42,314 shares of the company’s stock, valued at $5,187,696.40. This trade represents a 6.24% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Robert Schlossman sold 3,146 shares of the business’s stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $126.43, for a total value of $397,748.78. Following the completion of the transaction, the insider owned 69,366 shares in the company, valued at $8,769,943.38. This trade represents a 4.34% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 16,772 shares of company stock valued at $2,139,799. Company insiders own 17.20% of the company’s stock.

Zscaler News Summary

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Strong fiscal fourth-quarter results: Zscaler reported adjusted EPS of $1.19 versus the $1.09 consensus and revenue of $898.2 million versus $877.0 million expected. Revenue and annual recurring revenue (ARR) each increased 25% year over year, while non-GAAP operating margin reached a record 24%. Zscaler Announces Strong Fourth Quarter and Fiscal 2026 Financial Results
• Positive Sentiment: AI and platform demand remain catalysts: Management highlighted growing demand for Security for AI, Agentic SecOps, non-seat-based products and large enterprise deals. Analysts including Baird, Stephens, Needham, Canaccord and Cantor raised price targets, generally citing the earnings beat and potential for conservative guidance to be exceeded. Zscaler Analysts Boost Their Forecasts After Better-Than-Expected Q4 Earnings
• Neutral Sentiment: Analyst opinion is divided: Some analysts called the fiscal 2027 outlook overly cautious and maintained bullish ratings, while others noted that the forecast reflects competitive pressure, the Red Canary acquisition and a more measured growth profile.
• Negative Sentiment: Fiscal 2027 growth is expected to decelerate: Zscaler guided for revenue growth of 16.6% to 17.5% and ARR growth of 16.6% to 17.4%, well below the 25% growth delivered in fiscal 2026. The slower outlook overshadowed the quarterly beat and renewed valuation concerns for high-growth cybersecurity stocks. Zscaler Fiscal 2027 Growth Forecast
• Negative Sentiment: Free cash flow weakened sharply: Fourth-quarter free cash flow fell 65% year over year to $60.8 million, versus approximately $66.9 million expected, as capital expenditures and internal-use software spending increased. Zscaler also announced a restructuring affecting about 3% of its workforce, adding execution concerns. Zscaler Shares Fall Despite Earnings Beat

Institutional Investors Weigh In On Zscaler

Several hedge funds have recently modified their holdings of ZS. Integrated Wealth Concepts LLC raised its position in Zscaler by 19.9% during the 1st quarter. Integrated Wealth Concepts LLC now owns 1,439 shares of the company’s stock worth $285,000 after buying an additional 239 shares during the last quarter. NewEdge Advisors LLC boosted its holdings in shares of Zscaler by 8.2% in the first quarter. NewEdge Advisors LLC now owns 4,899 shares of the company’s stock valued at $972,000 after acquiring an additional 370 shares in the last quarter. Empowered Funds LLC increased its stake in shares of Zscaler by 9.2% during the first quarter. Empowered Funds LLC now owns 2,811 shares of the company’s stock worth $558,000 after acquiring an additional 238 shares during the period. Sivia Capital Partners LLC purchased a new position in Zscaler during the second quarter worth about $252,000. Finally, Jump Financial LLC acquired a new stake in Zscaler in the second quarter valued at about $3,019,000. 46.45% of the stock is 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.