Wedbush Brokers Lower Earnings Estimates for Zscaler

Key Points

• Wedbush has lowered its Q1 2026 earnings estimates for Zscaler, forecasting a loss of $0.07 per share instead of $0.01, while maintaining an "Outperform" rating and a price target of $330.00.
• Despite the lowered earnings estimates, Zscaler's Q1 earnings report showed a profit of $0.89 per share, exceeding expectations, with revenue of $719.23 million.
• Various analysts have mixed ratings on Zscaler, with targets ranging from $290.00 to $355.00; the consensus rating is "Moderate Buy" with an average target of $307.00.

Zscaler, Inc. (NASDAQ:ZS - Free Report) - Equities research analysts at Wedbush lowered their Q1 2026 EPS estimates for Zscaler in a research note issued to investors on Wednesday, September 3rd. Wedbush analyst D. Ives now forecasts that the company will post earnings per share of ($0.07) for the quarter, down from their previous forecast of ($0.01). Wedbush has a "Outperform" rating and a $330.00 price objective on the stock. The consensus estimate for Zscaler's current full-year earnings is ($0.10) per share. Wedbush also issued estimates for Zscaler's Q2 2026 earnings at ($0.03) EPS, Q3 2026 earnings at $0.03 EPS, Q4 2026 earnings at $0.04 EPS and FY2026 earnings at ($0.02) EPS.

Other equities analysts have also issued research reports about the company. Evercore ISI lifted their price target on Zscaler from $290.00 to $320.00 and gave the company an "outperform" rating in a research note on Wednesday, September 3rd. Guggenheim reaffirmed a "neutral" rating on shares of Zscaler in a report on Wednesday, September 3rd. JMP Securities reissued a "market outperform" rating and issued a $355.00 price objective on shares of Zscaler in a research report on Wednesday, September 3rd. Needham & Company LLC reissued a "buy" rating and issued a $350.00 price objective on shares of Zscaler in a research report on Wednesday, September 3rd. Finally, Royal Bank Of Canada boosted their target price on Zscaler from $315.00 to $335.00 and gave the company an "outperform" rating in a research report on Wednesday, September 3rd. One investment analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $307.00.

Zscaler Stock Performance

Shares of ZS opened at $274.20 on Monday. Zscaler has a 52-week low of $153.45 and a 52-week high of $318.46. The business's fifty day moving average is $285.29 and its 200-day moving average is $251.44. The firm has a market cap of $42.69 billion, a price-to-earnings ratio of -1,015.56 and a beta of 1.05.

Zscaler (NASDAQ:ZS - Get Free Report) last announced its earnings results on Tuesday, September 2nd. The company reported $0.89 earnings per share for the quarter, topping analysts' consensus estimates of $0.80 by $0.09. The company had revenue of $719.23 million for the quarter, compared to analyst estimates of $707.15 million. Zscaler had a negative return on equity of 0.49% and a negative net margin of 1.55%.The firm's quarterly revenue was up 21.3% compared to the same quarter last year. During the same quarter last year, the company 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.

Institutional Trading of Zscaler

Several institutional investors and hedge funds have recently bought and sold shares of the stock. China Universal Asset Management Co. Ltd. lifted its holdings in Zscaler by 46.0% in the second quarter. China Universal Asset Management Co. Ltd. now owns 5,535 shares of the company's stock worth $1,738,000 after buying an additional 1,745 shares during the period. Orion Porfolio Solutions LLC lifted its holdings in Zscaler by 41.9% in the second quarter. Orion Porfolio Solutions LLC now owns 4,374 shares of the company's stock worth $1,373,000 after buying an additional 1,292 shares during the period. Munro Partners purchased a new stake in Zscaler in the second quarter worth about $3,221,000. Thrivent Financial for Lutherans purchased a new stake in Zscaler in the second quarter worth about $232,000. Finally, MASTERINVEST Kapitalanlage GmbH purchased a new stake in Zscaler in the second quarter worth about $1,793,000. 46.45% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity at Zscaler

In other news, insider Adam Geller sold 3,662 shares of the stock in a transaction dated 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 completion of the sale, the insider directly owned 46,813 shares in the company, valued at approximately $14,358,483.36. This represents a 7.26% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Jagtar Singh Chaudhry sold 2,849 shares of the stock in a transaction dated Tuesday, June 17th. The stock was sold at an average price of $303.70, for a total transaction of $865,241.30. Following the sale, the chief executive officer owned 353,565 shares of the company's stock, valued at approximately $107,377,690.50. This represents a 0.80% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 23,305 shares of company stock valued at $7,093,136 in the last quarter. 18.10% of the stock is currently owned by company insiders.

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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