Zscaler (NASDAQ:ZS) Issues Q3 2026 Earnings Guidance

Zscaler (NASDAQ:ZS) issued an update on its third quarter 2026 earnings guidance on Thursday morning. The company provided earnings per share guidance of 1.000-1.010 for the period, compared to the consensus earnings per share estimate of 0.950. The company issued revenue guidance of $834.0 million-$836.0 million, compared to the consensus revenue estimate of $831.4 million. Zscaler also updated its FY 2026 guidance to 3.990-4.020 EPS.

Analyst Ratings Changes

Several analysts have recently issued reports on ZS shares. UBS Group decreased their price target on Zscaler from $350.00 to $340.00 and set a “buy” rating for the company in a research note on Wednesday, November 26th. Barclays set a $220.00 target price on Zscaler in a report on Thursday, February 19th. BTIG Research decreased their target price on Zscaler from $365.00 to $209.00 and set a “buy” rating for the company in a research report on Tuesday. Macquarie Infrastructure initiated coverage on Zscaler in a report on Friday, October 31st. They set an “outperform” rating and a $390.00 price target on the stock. Finally, Royal Bank Of Canada restated an “outperform” rating and issued a $250.00 price objective on shares of Zscaler in a research note on Wednesday, February 11th. One analyst has rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $293.84.

Zscaler Stock Performance

ZS stock traded up $11.66 on Thursday, reaching $167.36. 6,325,279 shares of the company were exchanged, compared to its average volume of 2,486,555. The firm has a market capitalization of $26.69 billion, a PE ratio of -643.67, a PEG ratio of 304.47 and a beta of 1.02. Zscaler has a 12 month low of $141.56 and a 12 month high of $336.99. The stock’s fifty day moving average price is $201.91 and its 200 day moving average price is $256.68. The company has a debt-to-equity ratio of 0.86, a current ratio of 1.82 and a quick ratio of 1.82.

Zscaler (NASDAQ:ZS) last issued its quarterly earnings results on Thursday, February 26th. The company reported $1.01 earnings per share for the quarter, beating analysts’ consensus estimates of $0.89 by $0.12. Zscaler had a negative net margin of 1.45% and a negative return on equity of 0.12%. The firm had revenue of $815.75 million during the quarter, compared to the consensus estimate of $798.92 million. Zscaler has set its Q3 2026 guidance at 1.000-1.010 EPS and its FY 2026 guidance at 3.990-4.020 EPS. On average, research analysts anticipate that Zscaler will post -0.1 EPS for the current fiscal year.

Insider Buying and Selling at Zscaler

In other Zscaler news, Director James A. Beer sold 653 shares of the firm’s stock in a transaction that occurred on Friday, January 2nd. The stock was sold at an average price of $226.72, for a total value of $148,048.16. Following the completion of the sale, the director owned 3,485 shares in the company, valued at approximately $790,119.20. This trade represents a 15.78% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Raj Judge sold 3,438 shares of Zscaler stock in a transaction that occurred on Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total value of $793,559.16. Following the sale, the executive vice president directly owned 70,394 shares in the company, valued at $16,248,343.08. The trade was a 4.66% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 19,350 shares of company stock valued at $4,471,509 over the last quarter. Company insiders own 17.20% of the company’s stock.

Zscaler News Roundup

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Q2 results topped expectations and management raised ARR guidance to 24% — Revenue $815.8M vs. ~$799M est; adjusted EPS $1.01 vs. $0.89 est. Management raised FY26 ARR growth target to 24%, a clear positive signal for recurring revenue momentum. Press Release
• Positive Sentiment: ARR and cash-flow expansion: ARR +25% YoY to $3.359B; operating cash flow +14% to $204.1M; free cash flow +18% to $169.1M — these improve the quality of revenue and support valuation arguments for subscription growth. Quarter Summary
• Positive Sentiment: AI security momentum: company’s AI Security offering reportedly reached ~$400M ARR by Q1 2026, providing a fast?growing monetization avenue beyond traditional seat?based SaaS. This supports long?term growth upside if adoption continues. SA Analysis
• Neutral Sentiment: GAAP profitability remains negative: the company reported a GAAP loss of $34.3M (?$0.21/sh) and negative net margin/ROE metrics, meaning adjusted results rely on exclusion of stock comp and one?offs — a mixed read for fundamental investors. Earnings Snapshot
• Neutral Sentiment: Pre?earnings analyst upgrades and revisions anticipated a stronger quarter, which may have amplified the post?earnings move; several analysts updated models ahead of the call. Benzinga Preview
• Negative Sentiment: Analyst skepticism remains: TD Cowen and BTIG published pessimistic forecasts, and some sell?side commentary highlights valuation and competitive pressure as downside risks — these dissenting views can cap upside. TD Cowen Note BTIG Note
• Negative Sentiment: Competitive and valuation concerns highlighted in market coverage may keep volatility high; Investing.com notes competition and stretched multiples remain a test for the stock. Investing.com
• Negative Sentiment: Recent analyst downgrades earlier this week contributed to intraday weakness before the print, showing sensitivity to sell?side views despite underlying ARR growth. Downgrade Coverage

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Integrated Wealth Concepts LLC boosted its stake in shares of Zscaler by 19.9% in the 1st quarter. Integrated Wealth Concepts LLC now owns 1,439 shares of the company’s stock valued at $285,000 after purchasing an additional 239 shares in the last quarter. NewEdge Advisors LLC lifted its holdings in Zscaler by 8.2% during the 1st quarter. NewEdge Advisors LLC now owns 4,899 shares of the company’s stock valued at $972,000 after purchasing an additional 370 shares during the last quarter. Empowered Funds LLC lifted its holdings in Zscaler by 9.2% during the 1st quarter. Empowered Funds LLC now owns 2,811 shares of the company’s stock valued at $558,000 after purchasing an additional 238 shares during the last quarter. Sivia Capital Partners LLC acquired a new position in Zscaler in the second quarter valued at about $252,000. Finally, Jump Financial LLC bought a new stake in Zscaler during the second quarter worth about $3,019,000. 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.