Zscaler (NASDAQ:ZS) Releases FY 2027 Earnings Guidance

Key Points

• Zscaler issued optimistic FY 2027 guidance: Full-year revenue is projected at approximately $3.9 billion, while EPS guidance of $4.86–$4.90 exceeds the $3.70 consensus estimate. Q1 EPS guidance is $1.15–$1.16.
• Recent results surpassed expectations: Fiscal Q4 revenue rose 25% year over year to $898.2 million, adjusted EPS reached $1.19, and annual recurring revenue increased 25% to $3.77 billion.
• Growth prospects remain strong, but risks persist: Analysts maintain a “Moderate Buy” consensus with an average price target of $213.10, while Zscaler faces a GAAP loss, workforce reductions of about 3%, and a decline in quarterly free-cash-flow margin.

Zscaler (NASDAQ:ZS - Get Free Report) issued an update on its FY 2027 earnings guidance on Thursday. The company provided EPS guidance of 4.860-4.900 for the period, compared to the consensus EPS 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 Analysts Forecast Growth

A number of brokerages have recently commented on ZS. Stephens restated an "overweight" rating and issued a $200.00 target price on shares of Zscaler in a research note on Friday, June 12th. The Goldman Sachs Group reaffirmed a "neutral" rating and set a $179.00 price objective on shares of Zscaler in a research note on Wednesday, May 27th. Deutsche Bank Aktiengesellschaft cut their target price on shares of Zscaler from $185.00 to $175.00 and set a "buy" rating for the company in a report on Wednesday, May 27th. Jefferies Financial Group reiterated a "buy" rating and issued a $220.00 target price on shares of Zscaler in a research note on Wednesday. Finally, Royal Bank Of Canada restated an "outperform" rating and set a $200.00 price target on shares of Zscaler in a research report on Wednesday, June 10th. Thirty-four analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $213.10.

Zscaler Price Performance

ZS stock traded up $5.07 during trading on Thursday, hitting $177.80. The stock had a trading volume of 8,161,736 shares, compared to its average volume of 3,349,032. The company has a debt-to-equity ratio of 0.72, a current ratio of 1.86 and a quick ratio of 1.86. Zscaler has a twelve month low of $114.63 and a twelve month high of $336.99. The stock has a market capitalization of $28.75 billion, a P/E ratio of -370.41, a PEG ratio of 104.98 and a beta of 0.95. The company's 50-day moving average price is $159.43 and its two-hundred day moving average price is $150.39.

Insider Transactions at Zscaler

In other news, CEO Jagtar Chaudhry sold 2,878 shares of the stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $126.43, for a total value of $363,865.54. Following the completion of the sale, the chief executive officer directly owned 343,038 shares in the company, valued at $43,370,294.34. This represents a 0.83% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Adam Geller sold 2,817 shares of the firm's stock in a transaction dated Monday, June 22nd. The stock was sold at an average price of $122.60, for a total transaction of $345,364.20. Following the completion of the transaction, the insider directly owned 42,314 shares in the company, valued at approximately $5,187,696.40. This represents a 6.24% decrease in their ownership of the stock. 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 ninety days, insiders have sold 16,772 shares of company stock worth $2,139,799. 17.20% of the stock is owned by insiders.

Trending Headlines about Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Revenue and ARR beat expectations: Fiscal Q4 revenue rose 25% year over year to $898.2 million, exceeding the roughly $877 million consensus estimate. Annual recurring revenue also increased 25% to $3.77 billion, supported by strong large-deal activity, non-seat-based products and the Red Canary acquisition. Zscaler Announces Strong Fourth Quarter and Fiscal 2026 Financial Results
• Positive Sentiment: Adjusted earnings topped estimates: Non-GAAP earnings were $1.19 per diluted share, up from $0.89 a year earlier and above the $1.09 consensus. The company also reported a record 24% non-GAAP operating margin. The reported GAAP loss was $0.02 per share, which likely explains conflicting headlines citing a $0.14 EPS figure. Zscaler stock soars on earnings beat, upbeat guidance
• Positive Sentiment: Guidance exceeded expectations: Zscaler forecast first-quarter fiscal 2027 revenue of $935 million to $939 million, with adjusted EPS of $1.15 to $1.16. Full-year revenue guidance of $3.908 billion to $3.938 billion and ARR guidance of $4.396 billion to $4.426 billion point to continued growth, while management highlighted rising demand for AI and agentic-security tools. Zscaler beats sales expectations
• Positive Sentiment: Cybersecurity positioning remains favorable: Coverage of a Microsoft Exchange vulnerability highlighted Zscaler’s zero-trust platform as a potential tool for helping organizations reduce exposure to emerging threats. Microsoft Exchange Vulnerability and Zscaler
• Neutral Sentiment: Broader software shares also gained as Treasury yields pulled back and investors responded positively to recent technology-sector results, providing an additional tailwind for ZS. Software shares rise
• Negative Sentiment: Profitability and restructuring risks remain: Zscaler posted a $3.4 million GAAP net loss for Q4 and announced plans to eliminate approximately 3% of its workforce while reallocating resources toward AI and growth initiatives. Quarterly free-cash-flow margin fell to 7% from 24%, largely because of significantly higher capital expenditures and internal-use software spending. Zscaler Loss Narrows as Revenue Soars

Institutional Trading of Zscaler

Hedge funds have recently bought and sold shares of the business. Integrated Wealth Concepts LLC lifted its stake in shares of Zscaler by 19.9% in the 1st quarter. Integrated Wealth Concepts LLC now owns 1,439 shares of the company's stock valued at $285,000 after purchasing an additional 239 shares during the last quarter. NewEdge Advisors LLC increased its position in shares of Zscaler by 8.2% during the 1st quarter. NewEdge Advisors LLC now owns 4,899 shares of the company's stock worth $972,000 after purchasing an additional 370 shares during the last quarter. Empowered Funds LLC raised its holdings in Zscaler by 9.2% in the 1st quarter. Empowered Funds LLC now owns 2,811 shares of the company's stock valued at $558,000 after buying an additional 238 shares during the period. Sivia Capital Partners LLC acquired a new position in Zscaler in the second quarter valued at about $252,000. Finally, Jump Financial LLC acquired a new stake in shares of Zscaler during the second quarter valued at about $3,019,000. Institutional investors and hedge funds own 46.45% of the company's stock.

Zscaler Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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