Roth Capital Has Positive Forecast for Zscaler Q1 Earnings

Key Points

• Roth Capital has increased its Q1 2026 EPS estimates for Zscaler from ($0.15) to (0.06) and maintains a "Neutral" rating on the stock.
• Zscaler reported a revenue of $719.23 million for the last quarter, exceeding the consensus estimate of $707.15 million, with earnings per share of $0.89.
• Analysts have mixed ratings on Zscaler, with over 29 Buy ratings and a consensus target price of $307.00, while Zacks downgraded the stock to a "strong sell."

Zscaler, Inc. (NASDAQ:ZS - Free Report) - Analysts at Roth Capital raised their Q1 2026 EPS estimates for Zscaler in a research report issued on Wednesday, September 3rd. Roth Capital analyst I. Koujalgi now expects that the company will post earnings of ($0.06) per share for the quarter, up from their previous forecast of ($0.15). Roth Capital currently has a "Neutral" rating on the stock. The consensus estimate for Zscaler's current full-year earnings is ($0.10) per share. Roth Capital also issued estimates for Zscaler's Q2 2026 earnings at ($0.04) EPS, Q3 2026 earnings at $0.01 EPS, Q4 2026 earnings at $0.07 EPS, Q1 2027 earnings at ($0.19) EPS, Q2 2027 earnings at ($0.19) EPS, Q3 2027 earnings at ($0.05) EPS, Q4 2027 earnings at ($0.06) EPS and FY2027 earnings at ($0.49) EPS.

ZS has been the topic of a number of other research reports. Guggenheim reissued a "neutral" rating on shares of Zscaler in a report on Wednesday, September 3rd. Royal Bank Of Canada boosted their price objective on shares of Zscaler from $315.00 to $335.00 and gave the stock an "outperform" rating in a report on Wednesday, September 3rd. Barclays boosted their price objective on shares of Zscaler from $300.00 to $320.00 and gave the stock an "overweight" rating in a report on Wednesday, September 3rd. BTIG Research reissued a "buy" rating on shares of Zscaler in a report on Thursday, July 10th. Finally, Zacks Research downgraded shares of Zscaler from a "hold" rating to a "strong sell" rating in a report on Wednesday, September 3rd. One analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $307.00.

Zscaler Trading Up 2.2%

ZS stock opened at $274.20 on Monday. The company has a market cap of $42.69 billion, a P/E ratio of -1,015.56 and a beta of 1.05. Zscaler has a 52 week low of $153.45 and a 52 week high of $318.46. The company's 50-day moving average price is $285.29 and its 200 day moving average price is $251.44.

Zscaler (NASDAQ:ZS - Get Free Report) last issued its earnings results on Tuesday, September 2nd. The company reported $0.89 earnings per share for the quarter, beating the consensus estimate of $0.80 by $0.09. The business 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 quarterly revenue was up 21.3% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $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

In related news, EVP Raj Judge sold 2,957 shares of Zscaler stock in a transaction on Tuesday, June 17th. The shares were 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 of the company's stock, valued at $23,168,969.30. The trade was a 3.73% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider Robert Schlossman sold 3,174 shares of Zscaler stock in a transaction on Wednesday, June 18th. The stock was sold at an average price of $305.07, for a total transaction of $968,292.18. Following the sale, the insider directly owned 88,970 shares in the company, valued at $27,142,077.90. This trade represents a 3.44% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 23,305 shares of company stock valued at $7,093,136. 18.10% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Zscaler

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Quaker Wealth Management LLC boosted its stake in Zscaler by 200.0% during the 2nd quarter. Quaker Wealth Management LLC now owns 97 shares of the company's stock valued at $30,000 after acquiring an additional 194 shares during the last quarter. Exane Asset Management boosted its stake in Zscaler by 185.7% during the 2nd quarter. Exane Asset Management now owns 100 shares of the company's stock valued at $31,000 after acquiring an additional 65 shares during the last quarter. Kozak & Associates Inc. bought a new position in Zscaler during the 2nd quarter valued at $35,000. ORG Partners LLC boosted its stake in Zscaler by 284.8% during the 1st quarter. ORG Partners LLC now owns 127 shares of the company's stock valued at $26,000 after acquiring an additional 94 shares during the last quarter. Finally, SVB Wealth LLC bought a new position in Zscaler during the 1st quarter valued at $26,000. Hedge funds and other institutional investors own 46.45% of the company's stock.

Zscaler Company Profile

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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