Zscaler (NASDAQ:ZS – Get Free Report) updated its fourth quarter 2026 earnings guidance on Tuesday. The company provided earnings per share (EPS) guidance of 1.080-1.090 for the period, compared to the consensus estimate of 0.830. The company issued revenue guidance of $875.0 million-$878.0 million, compared to the consensus revenue estimate of $878.5 million. Zscaler also updated its FY 2026 guidance to 4.100-4.110 EPS.
Analyst Upgrades and Downgrades
ZS has been the subject of a number of recent research reports. Stephens set a $205.00 target price on Zscaler in a research report on Wednesday. Mizuho dropped their target price on Zscaler from $210.00 to $185.00 and set an “outperform” rating for the company in a research report on Wednesday. HC Wainwright upgraded Zscaler from a “buy” rating to a “buy” rating in a research report on Monday, May 18th. Oppenheimer dropped their target price on Zscaler from $280.00 to $250.00 and set an “outperform” rating for the company in a research report on Tuesday, March 10th. Finally, Scotiabank dropped their target price on Zscaler from $190.00 to $175.00 and set a “sector outperform” rating for the company in a research report on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating, seven have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $216.62.
View Our Latest Stock Report on ZS
Zscaler Stock Down 31.5%
Zscaler (NASDAQ:ZS – Get Free Report) last announced its quarterly earnings data on Tuesday, May 26th. The company reported $1.08 EPS for the quarter, topping analysts’ consensus estimates of $1.01 by $0.07. Zscaler had a negative return on equity of 0.39% and a negative net margin of 2.44%.The business had revenue of $850.48 million during the quarter, compared to analysts’ expectations of $835.14 million. During the same period in the previous year, the firm earned $0.84 earnings per share. The firm’s quarterly revenue was up 25.4% compared to the same quarter last year. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. Research analysts predict that Zscaler will post -0.03 EPS for the current year.
Insider Buying and Selling at Zscaler
In related news, insider Robert Schlossman sold 2,263 shares of Zscaler stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total transaction of $354,363.17. Following the completion of the sale, the insider directly owned 72,390 shares of the company’s stock, valued at $11,335,550.10. The trade was a 3.03% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Adam Geller sold 2,094 shares of Zscaler stock in a transaction on Wednesday, March 18th. The stock was sold at an average price of $153.53, for a total value of $321,491.82. Following the sale, the insider directly owned 46,949 shares of the company’s stock, valued at approximately $7,208,079.97. This trade represents a 4.27% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 12,130 shares of company stock valued at $1,892,487 over the last quarter. 17.20% of the stock is owned by corporate insiders.
Trending Headlines about Zscaler
Here are the key news stories impacting Zscaler this week:
- Positive Sentiment: Zscaler posted strong Q3 results, with EPS of $1.08 topping estimates and revenue of $850.5 million beating consensus, while revenue grew 25% year over year. The company also highlighted solid demand for its Zero Trust and AI security offerings, along with strong ARR growth. Zscaler Announces Strong Third-Quarter Fiscal 2026 Results
- Positive Sentiment: Several analysts kept bullish ratings even after trimming price targets, citing Zscaler’s strong net new recurring revenue and long-term positioning in cybersecurity. Zscaler collapses over outlook; analysts lower targets but remain upbeat on strong NRR
- Neutral Sentiment: Management said it is taking a “prudent” approach to guidance amid memory, storage, and processor cost pressures, plus sales team changes and departures of senior sales leaders. Zscaler Issues ‘Prudent’ Outlook Amid Memory Shortage, Sales Team Changes — Update
- Negative Sentiment: The main driver of the selloff was Zscaler’s fiscal Q4 revenue outlook of $875 million to $878 million, which came in slightly below expectations and raised concerns about slowing growth and tougher competition in cybersecurity. Zscaler sees downbeat quarterly revenue as competition heats up in cybersecurity market
- Negative Sentiment: Reports of leadership turnover in sales, along with investor investigations and fraud-related alerts, may add near-term uncertainty and pressure sentiment around the stock. Shareholder Alert: Ademi LLP Investigates Claims of Securities Fraud against Zscaler, Inc.
Institutional Inflows and Outflows
Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Sivia Capital Partners LLC acquired a new position in Zscaler in the second quarter valued at about $252,000. Fairscale Capital LLC grew its stake in Zscaler by 15.6% in the fourth quarter. Fairscale Capital LLC now owns 438 shares of the company’s stock valued at $99,000 after acquiring an additional 59 shares during the period. Front Row Advisors LLC grew its stake in Zscaler by 68.9% in the fourth quarter. Front Row Advisors LLC now owns 652 shares of the company’s stock valued at $147,000 after acquiring an additional 266 shares during the period. Intesa Sanpaolo Wealth Management acquired a new position in Zscaler in the fourth quarter valued at about $138,000. Finally, Parallel Advisors LLC grew its stake in Zscaler by 77.8% in the fourth quarter. Parallel Advisors LLC now owns 706 shares of the company’s stock valued at $159,000 after acquiring an additional 309 shares during the period. 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.
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