Zscaler (NASDAQ:ZS) Announces Earnings Results, Misses Estimates By $0.95 EPS

Posted by Stanley Muller on Sep 3rd, 2026

Zscaler (NASDAQ:ZS – Get Free Report) announced its earnings results on Thursday. The company reported $0.14 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.09 by ($0.95), Zacks reports. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%.

Zscaler Price Performance

ZS stock traded up $5.07 on Thursday, hitting $177.80. 7,480,672 shares of the company’s stock traded hands, compared to its average volume of 3,341,104. The company has a current ratio of 1.86, a quick ratio of 1.86 and a debt-to-equity ratio of 0.72. The stock has a market cap of $28.75 billion, a price-to-earnings ratio of -370.41, a P/E/G ratio of 104.98 and a beta of 0.95. Zscaler has a 1-year low of $114.63 and a 1-year high of $336.99. The stock has a fifty day moving average of $159.43 and a 200-day moving average of $150.39.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on the stock. FBN Securities reaffirmed an “outperform” rating and issued a $175.00 price target on shares of Zscaler in a research note on Wednesday, May 27th. Guggenheim reiterated a “buy” rating and set a $214.00 price objective on shares of Zscaler in a research note on Monday, August 24th. Citigroup reissued a “market outperform” rating on shares of Zscaler in a report on Wednesday, May 27th. B. Riley Financial cut their target price on Zscaler from $225.00 to $215.00 and set a “buy” rating for the company in a research report on Wednesday, May 27th. Finally, Canaccord Genuity Group reaffirmed a “buy” rating and set a $210.00 price target on shares of Zscaler in a research note on Thursday, June 11th. Thirty-four investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $213.10.

Read Our Latest Research Report on ZS

Zscaler News Summary

Here are the key news stories impacting Zscaler this week:

Positive Sentiment: Quarterly earnings beat expectations. Zscaler exceeded Wall Street’s fiscal fourth-quarter estimates, providing the primary catalyst for the stock’s move higher. Zscaler stock soars on earnings beat, upbeat guidance
Positive Sentiment: Growth remained strong. Zscaler reported 25% year-over-year growth in both fourth-quarter and fiscal-year revenue, while annual recurring revenue also increased 25% year over year. Sustained ARR growth supports the company’s recurring-revenue model and long-term expansion story. Zscaler Announces Strong Fourth Quarter and Fiscal 2026 Financial Results
Positive Sentiment: Outlook and product momentum improved investor confidence. Management issued upbeat guidance, and CEO Jay Chaudhry said Zscaler’s agentic security tool is gaining momentum. The comments suggest potential for additional growth from newer artificial-intelligence-related security offerings. Zscaler stock soars on earnings beat, upbeat guidance
Neutral Sentiment: Pre-earnings coverage focused on whether guidance would be the key metric, reflecting Zscaler’s history of being penalized when its forecasts appeared overly conservative. The stronger report and outlook appear to have addressed that concern for now. Bull v. Bear: ZS Faces Low Earnings Bar, Guidance Will be Biggest Metric
Negative Sentiment: Some analysts had adopted a more cautious stance ahead of the earnings release, creating a risk of disappointment. That concern was a potential headwind, although the earnings beat and upbeat guidance have reduced its immediate impact. Analysts turn cautious ahead of Zscaler’s Q4 print

Insider Buying and Selling

In other news, insider Robert Schlossman sold 3,146 shares of the stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total transaction of $397,748.78. Following the completion of the sale, the insider owned 69,366 shares in the company, valued at approximately $8,769,943.38. This represents a 4.34% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Jagtar Chaudhry sold 2,878 shares of the firm’s stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total value of $363,865.54. Following the sale, the chief executive officer directly owned 343,038 shares of the company’s stock, valued at approximately $43,370,294.34. This represents a 0.83% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 16,772 shares of company stock worth $2,139,799 over the last three months. Corporate insiders own 17.20% of the company’s stock.

Hedge Funds Weigh In On Zscaler

Hedge funds and other institutional investors have recently modified their holdings of the stock. Binnacle Investments Inc acquired a new stake in Zscaler during the 3rd quarter worth about $25,000. AlphaCentric Advisors LLC purchased a new stake in Zscaler during the fourth quarter valued at 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. increased its position 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.

About Zscaler

(Get Free Report)

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.