Zscaler (NASDAQ:ZS) Issues FY 2026 Earnings Guidance

Zscaler (NASDAQ:ZS) issued an update on its FY 2026 earnings guidance on Thursday morning. The company provided earnings per share guidance of 3.990-4.020 for the period, compared to the consensus earnings per share estimate of 2.310. 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 Q3 2026 guidance to 1.000-1.010 EPS.

Zscaler Price Performance

ZS stock traded up $11.66 during midday trading on Thursday, hitting $167.36. 6,325,279 shares of the stock were exchanged, compared to its average volume of 2,486,555. The stock’s 50-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 quick ratio of 1.82 and a current ratio of 1.82. The stock has a market cap of $26.69 billion, a price-to-earnings ratio of -643.67, a PEG ratio of 304.47 and a beta of 1.02. Zscaler has a fifty-two week low of $141.56 and a fifty-two week high of $336.99.

Zscaler (NASDAQ:ZS) last announced 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 return on equity of 0.12% and a negative net margin of 1.45%.The business had revenue of $815.75 million during the quarter, compared to analysts’ expectations of $798.92 million. During the same quarter last year, the business posted $0.78 earnings per share. The business’s revenue for the quarter was up 25.9% on a year-over-year basis. Zscaler has set its Q3 2026 guidance at 1.000-1.010 EPS and its FY 2026 guidance at 3.990-4.020 EPS. Research analysts predict that Zscaler will post -0.1 earnings per share for the current year.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on ZS shares. UBS Group reduced their price target on shares of Zscaler from $350.00 to $340.00 and set a “buy” rating on the stock in a report on Wednesday, November 26th. Stephens cut their price objective on Zscaler from $340.00 to $225.00 and set an “overweight” rating for the company in a research report on Monday. Piper Sandler lowered their target price on Zscaler from $280.00 to $260.00 and set a “neutral” rating on the stock in a report on Monday, January 5th. Berenberg Bank dropped their price target on Zscaler from $400.00 to $390.00 and set a “buy” rating for the company in a research report on Friday, November 28th. Finally, JPMorgan Chase & Co. reduced their price objective on Zscaler from $354.00 to $267.00 and set an “overweight” rating on the stock in a research report on Friday, February 20th. One analyst has rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Zscaler presently has a consensus rating of “Moderate Buy” and an average target price of $293.84.

Insider Buying and Selling at Zscaler

In related news, EVP Raj Judge sold 3,438 shares of the stock in a transaction dated Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total transaction of $793,559.16. Following the transaction, the executive vice president directly owned 70,394 shares in the company, valued at approximately $16,248,343.08. This represents a 4.66% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director James A. Beer sold 653 shares of the firm’s stock in a transaction dated 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 directly owned 3,485 shares in the company, valued at approximately $790,119.20. The trade was a 15.78% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 19,350 shares of company stock valued at $4,471,509. 17.20% of the stock is currently owned by insiders.

Key Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Q2 adjusted earnings and revenue beat consensus — Zscaler reported adjusted EPS of $1.01 vs. $0.89 expected and revenue of $815.8M vs. about $799M consensus, showing 26% year?over?year revenue growth. Strong headline beats helped lift sentiment. Zscaler (ZS) Tops Q2 Earnings and Revenue Estimates
• Positive Sentiment: ARR, cash flow and ARR guidance were strong — Annual recurring revenue rose to $3,359M (+25% YoY); operating and free cash flow improved and the company raised fiscal?year ARR growth guidance to ~24%, which supports longer?term subscription growth expectations. Zscaler Announces Strong Second-Quarter Fiscal 2026 Results; Raises Fiscal 2026 ARR Guidance to 24%
• Positive Sentiment: AI security momentum — Analyst pieces highlight Zscaler’s growing AI?security products (AI Guard, Agentic Operations) and a reported ~$400M AI Security ARR pillar, which could diversify/reaccelerate growth and improve monetization beyond seat?based SaaS risk. Zscaler’s AI-Powered Security: A Compelling Case For Aggressive Growth Investors
• Neutral Sentiment: Mixed analyst activity — Some firms (e.g., Rosenblatt) reiterated bullish ratings while others (TD Cowen, BTIG) issued cautious or pessimistic notes recently; this leaves short?term sentiment fragmented. Rosenblatt Securities Reiterates Buy Rating for Zscaler (NASDAQ:ZS)
• Negative Sentiment: After?hours volatility tied to revenue outlook language — some outlets and traders flagged that commentary around fiscal?year revenue/growth left room for concern, prompting an extended?hours pullback despite the beat on EPS. ZScaler Stock Drops After Q2 Earnings, Lowered Revenue Guidance
• Negative Sentiment: GAAP loss and valuation/competition concerns remain — company reported a GAAP loss (and negative net margin/ROE), and commentary about competition and rich valuation continues to temper some investors’ enthusiasm. Zscaler faces earnings test as competition, valuation weigh

Institutional Investors Weigh In On Zscaler

Several hedge funds have recently modified their holdings of the stock. Binnacle Investments Inc purchased a new stake in Zscaler in the third quarter valued at approximately $25,000. AlphaCentric Advisors LLC acquired a new position in shares of Zscaler in the 4th quarter valued at $29,000. Mcguire Capital Advisors Inc. purchased a new stake in shares of Zscaler during the 4th quarter valued at $32,000. Strive Financial Group LLC purchased a new stake in shares of Zscaler during the 4th quarter valued at $39,000. Finally, Sumitomo Mitsui Financial Group Inc. increased its holdings in shares of Zscaler by 105.5% during the 4th quarter. Sumitomo Mitsui Financial Group Inc. now owns 215 shares of the company’s stock worth $49,000 after buying an additional 4,111 shares during the last quarter. 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.