Zacks Research Issues Positive Estimate for Zscaler Earnings

Key Points

• Zscaler's earnings per share estimates for Q1 2026 have been raised by Zacks Research, now projected at ($0.07), an improvement from the previous estimate of ($0.12).
• The company's latest quarterly earnings showed a revenue of $719.23 million, surpassing analysts' expectations, and represented a 21.3% year-on-year increase.
• Despite the positive earnings estimate, Zacks Research maintains a "Strong Sell" rating on Zscaler, which has an overall average rating of "Moderate Buy" and a price target of $307.00.

Zscaler, Inc. (NASDAQ:ZS - Free Report) - Investment analysts at Zacks Research raised their Q1 2026 earnings per share estimates for Zscaler in a report released on Tuesday, September 23rd. Zacks Research analyst Team now expects that the company will post earnings of ($0.07) per share for the quarter, up from their previous forecast of ($0.12). Zacks Research has a "Strong Sell" rating on the stock. The consensus estimate for Zscaler's current full-year earnings is ($0.10) per share. Zacks Research also issued estimates for Zscaler's Q2 2026 earnings at ($0.05) EPS, Q3 2026 earnings at ($0.02) EPS, Q4 2026 earnings at ($0.03) EPS, FY2026 earnings at ($0.16) EPS, Q1 2027 earnings at ($0.07) EPS, Q2 2027 earnings at ($0.06) EPS, Q3 2027 earnings at ($0.07) EPS, Q4 2027 earnings at ($0.08) EPS, FY2027 earnings at ($0.29) EPS and FY2028 earnings at ($0.02) EPS.

Zscaler (NASDAQ:ZS - Get Free Report) last posted its quarterly earnings data on Tuesday, September 2nd. The company reported $0.89 EPS 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 the consensus estimate of $707.15 million. Zscaler had a negative return on equity of 0.47% and a negative net margin of 1.55%.The company's quarterly revenue was up 21.3% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.88 EPS. Zscaler has set its FY 2026 guidance at 3.640-3.680 EPS. Q1 2026 guidance at 0.850-0.860 EPS.

Other equities research analysts also recently issued research reports about the company. Rosenblatt Securities increased their price objective on Zscaler from $315.00 to $330.00 and gave the company a "buy" rating in a research report on Wednesday, September 3rd. Barclays raised their target price 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 research report on Thursday, July 10th. Royal Bank Of Canada upped their price target on shares of Zscaler from $315.00 to $335.00 and gave the company an "outperform" rating in a research report on Wednesday, September 3rd. Finally, Scotiabank decreased their price objective on shares of Zscaler from $360.00 to $334.00 and set a "sector outperform" rating for the company in a research note on Wednesday, September 3rd. One equities research 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 assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Zscaler currently has an average rating of "Moderate Buy" and a consensus price target of $307.00.

Zscaler Stock Up 0.8%

NASDAQ ZS opened at $286.66 on Friday. Zscaler has a 12 month low of $164.78 and a 12 month high of $318.46. The company has a market capitalization of $45.38 billion, a P/E ratio of -1,061.70 and a beta of 1.05. The company's 50 day simple moving average is $280.34 and its 200 day simple moving average is $259.28. The company has a debt-to-equity ratio of 0.95, a current ratio of 2.01 and a quick ratio of 2.01.

Hedge Funds Weigh In On Zscaler

A number of institutional investors have recently modified their holdings of ZS. GAMMA Investing LLC lifted 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 acquiring an additional 193 shares during the last quarter. Parisi Gray Wealth Management acquired a new position in shares of Zscaler during the 2nd quarter worth about $801,000. Focus Partners Wealth boosted its stake in Zscaler by 2.5% during the 1st quarter. Focus Partners Wealth now owns 62,083 shares of the company's stock valued at $12,319,000 after purchasing an additional 1,517 shares during the period. Howe & Rusling Inc. increased its position in Zscaler by 17.1% in the 1st quarter. Howe & Rusling Inc. now owns 24,672 shares of the company's stock worth $4,895,000 after buying an additional 3,611 shares during the period. Finally, Allworth Financial LP lifted its holdings in shares of Zscaler by 47.4% during the first quarter. Allworth Financial LP now owns 1,002 shares of the company's stock worth $211,000 after buying an additional 322 shares during the last quarter. Institutional investors own 46.45% of the company's stock.

Insider Buying and Selling at Zscaler

In related news, insider Robert Schlossman sold 3,832 shares of Zscaler stock in a transaction on Tuesday, September 16th. The shares were sold at an average price of $280.70, for a total value of $1,075,642.40. Following the completion of the sale, the insider owned 83,138 shares of the company's stock, valued at approximately $23,336,836.60. The trade was a 4.41% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Raj Judge sold 4,524 shares of the stock in a transaction on Tuesday, September 16th. The stock was sold at an average price of $280.70, for a total transaction of $1,269,886.80. Following the transaction, the executive vice president directly owned 73,832 shares in the company, valued at $20,724,642.40. The trade was a 5.77% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 32,878 shares of company stock worth $9,266,002 over the last quarter. Company insiders own 18.10% of the company's stock.

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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