B. Riley Has Bearish Forecast for Zscaler Q1 Earnings

Key Points

• B. Riley has lowered its Q1 2026 EPS estimate for Zscaler from $0.04 to **($0.06)**, maintaining a "Neutral" rating with a price target of **$275.00**.
• Despite the bearish forecast from B. Riley, several other analysts have raised their price targets on Zscaler, with Oppenheimer increasing its target to **$345.00** and JPMorgan to **$351.00**.
• Insider selling has been notable, with key executives selling thousands of shares recently, indicating a potential **shift in confidence** from those closely associated with the company.

Zscaler, Inc. (NASDAQ:ZS - Free Report) - Investment analysts at B. Riley decreased their Q1 2026 EPS estimates for Zscaler in a report issued on Wednesday, September 3rd. B. Riley analyst E. Suppiger now expects that the company will earn ($0.06) per share for the quarter, down from their prior forecast of $0.04. B. Riley has a "Neutral" rating and a $275.00 price objective on the stock. The consensus estimate for Zscaler's current full-year earnings is ($0.10) per share. B. Riley also issued estimates for Zscaler's Q2 2026 earnings at ($0.02) EPS, Q3 2026 earnings at $0.01 EPS, Q4 2026 earnings at $0.05 EPS, FY2026 earnings at ($0.01) EPS, Q1 2027 earnings at $0.02 EPS, Q2 2027 earnings at $0.01 EPS, Q3 2027 earnings at $0.06 EPS, Q4 2027 earnings at $0.14 EPS and FY2027 earnings at $0.22 EPS.

A number of other equities research analysts also recently issued reports on the stock. Oppenheimer increased their price objective on shares of Zscaler from $290.00 to $345.00 and gave the stock an "outperform" rating in a research note on Friday, June 6th. JPMorgan Chase & Co. increased their price objective on shares of Zscaler from $348.00 to $351.00 and gave the stock an "overweight" rating in a research note on Wednesday, September 3rd. BTIG Research reiterated a "buy" rating on shares of Zscaler in a research note on Thursday, July 10th. Rosenblatt Securities lifted their price target on shares of Zscaler from $315.00 to $330.00 and gave the company a "buy" rating in a report on Wednesday, September 3rd. Finally, Truist Financial reiterated a "buy" rating and set a $300.00 price objective (up from $260.00) on shares of Zscaler in a research report on Friday, May 30th. One investment analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $307.00.

Zscaler Stock Up 2.2%

Shares of Zscaler stock opened at $274.20 on Monday. The company has a market capitalization of $42.69 billion, a price-to-earnings ratio of -1,015.56 and a beta of 1.05. Zscaler has a 12-month low of $153.45 and a 12-month high of $318.46. The firm's 50-day moving average price is $285.29 and its two-hundred day moving average price is $251.44.

Zscaler (NASDAQ:ZS - Get Free Report) last announced its quarterly earnings data on Tuesday, September 2nd. The company reported $0.89 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.80 by $0.09. The firm had revenue of $719.23 million for the quarter, compared to the consensus estimate of $707.15 million. Zscaler had a negative net margin of 1.55% and a negative return on equity of 0.49%. The business's revenue for the quarter was up 21.3% on a year-over-year basis. During the same period in the prior year, the company posted $0.88 earnings per share. Zscaler has set its FY 2026 guidance at 3.640-3.680 EPS. Q1 2026 guidance at 0.850-0.860 EPS.

Insider Buying and Selling at Zscaler

In related news, insider Adam Geller sold 3,662 shares of Zscaler stock in a transaction that occurred on Wednesday, June 18th. The shares were sold at an average price of $306.72, for a total transaction of $1,123,208.64. Following the sale, the insider directly owned 46,813 shares in the company, valued at $14,358,483.36. This trade represents a 7.26% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Raj Judge sold 2,957 shares of Zscaler stock in a transaction that occurred on Tuesday, June 17th. The stock was sold at an average price of $303.70, for a total transaction of $898,040.90. Following the sale, the executive vice president owned 76,289 shares in the company, valued at approximately $23,168,969.30. This represents a 3.73% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 23,305 shares of company stock worth $7,093,136 over the last quarter. Insiders own 18.10% of the company's stock.

Institutional Investors Weigh In On Zscaler

Hedge funds have recently added to or reduced their stakes in the business. GAMMA Investing LLC boosted its position in Zscaler by 43.1% during the 1st quarter. GAMMA Investing LLC now owns 641 shares of the company's stock worth $127,000 after buying an additional 193 shares during the period. Allworth Financial LP raised its holdings in Zscaler by 47.4% during the 1st quarter. Allworth Financial LP now owns 1,002 shares of the company's stock worth $211,000 after purchasing an additional 322 shares during the last quarter. Krane Funds Advisors LLC raised its holdings in Zscaler by 36.4% during the 1st quarter. Krane Funds Advisors LLC now owns 1,667 shares of the company's stock worth $331,000 after purchasing an additional 445 shares during the last quarter. Merit Financial Group LLC raised its holdings in Zscaler by 42.0% during the 1st quarter. Merit Financial Group LLC now owns 6,197 shares of the company's stock worth $1,230,000 after purchasing an additional 1,832 shares during the last quarter. Finally, National Pension Service raised its holdings in Zscaler by 11.2% during the 1st quarter. National Pension Service now owns 171,847 shares of the company's stock worth $34,098,000 after purchasing an additional 17,342 shares during the last quarter. 46.45% of the stock is currently owned by institutional investors and hedge funds.

About Zscaler

Zscaler, Inc operates as a cloud security company worldwide. The company offers Zscaler Internet Access solution that provides users, workloads, IoT, and OT devices secure access to externally managed applications, including software-as-a-service (SaaS) applications and internet destinations; and Zscaler Private Access solution, which is designed to provide access to managed applications hosted internally in data centers, and private or public clouds.

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