Zscaler (NASDAQ:ZS) Releases FY 2027 Earnings Guidance

Zscaler (NASDAQ:ZS) issued an update on its FY 2027 earnings guidance on Thursday morning. The company provided earnings per share guidance of 4.860-4.900 for the period, compared to the consensus estimate of 3.700. The company issued revenue guidance of $3.9 billion-$3.9 billion, compared to the consensus revenue estimate of $3.9 billion. Zscaler also updated its Q1 2027 guidance to 1.150-1.160 EPS.

Wall Street Analyst Weigh In

ZS has been the topic of several analyst reports. Wells Fargo & Company upped their target price on Zscaler from $210.00 to $215.00 and gave the company an “overweight” rating in a report on Friday. Deutsche Bank Aktiengesellschaft reissued a “buy” rating on shares of Zscaler in a research note on Friday. Barclays upped their price objective on shares of Zscaler from $192.00 to $200.00 and gave the stock an “overweight” rating in a research report on Friday. Truist Financial set a $210.00 price target on shares of Zscaler in a report on Wednesday, May 27th. Finally, Canaccord Genuity Group reiterated a “buy” rating and issued a $210.00 price objective on shares of Zscaler in a research note on Friday. Thirty-four investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $217.08.

Zscaler Trading Down 4.5%

NASDAQ:ZS opened at $169.80 on Friday. The firm has a market capitalization 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. The company has a quick ratio of 1.86, a current ratio of 1.86 and a debt-to-equity ratio of 0.72. The company has a fifty day moving average of $161.26 and a 200 day moving average of $150.53. Zscaler has a 52 week low of $114.63 and a 52 week high of $336.99.

Zscaler (NASDAQ:ZS) last announced its quarterly earnings results on Thursday, September 3rd. The company reported $1.19 earnings per share (EPS) for the quarter, topping 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 analyst estimates of $876.96 million. During the same quarter last year, the firm earned $0.89 EPS. The company’s 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 predict that Zscaler will post 0.13 earnings per share for the current year.

Insiders Place Their Bets

In other Zscaler news, CFO Kevin Rubin sold 503 shares of the stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $173.38, for a total value of $87,210.14. Following the completion of the sale, the chief financial officer owned 40,895 shares in the company, valued at approximately $7,090,375.10. This trade represents a 1.22% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Adam Geller sold 2,817 shares of the company’s stock in a transaction that occurred on Monday, June 22nd. The shares were sold at an average price of $122.60, for a total value of $345,364.20. Following the transaction, the insider owned 42,314 shares of the company’s stock, valued at approximately $5,187,696.40. This represents a 6.24% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 16,772 shares of company stock worth $2,139,799. Corporate 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

Hedge Funds Weigh In On Zscaler

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

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.