Zscaler (NASDAQ:ZS) Releases Earnings Results, Beats Expectations By $0.08 EPS

Key Points

• Zscaler beat earnings expectations, reporting $1.08 EPS versus the $1.00 consensus estimate, while revenue came in at $850.48 million, also ahead of forecasts.
• The company issued upbeat guidance for both Q4 fiscal 2026 and full-year fiscal 2026, with EPS outlooks of $1.08-$1.09 and $4.10-$4.11, respectively, both above Wall Street estimates.
• Zscaler’s results showed strong operating momentum, with revenue and ARR each rising 25% year over year and free cash flow improving to $136 million, helping lift the stock about 1.2% in trading.

Zscaler (NASDAQ:ZS - Get Free Report) announced its quarterly earnings data on Tuesday. The company reported $1.08 EPS for the quarter, beating analysts' consensus estimates of $1.00 by $0.08, FiscalAI reports. Zscaler had a positive return on equity of 0.06% and a negative net margin of 2.25%.The company had revenue of $850.48 million during the quarter, compared to the consensus estimate of $835.60 million. Zscaler updated its Q4 2026 guidance to 1.080-1.090 EPS and its FY 2026 guidance to 4.100-4.110 EPS.

Zscaler Stock Up 1.2%

Shares of NASDAQ:ZS traded up $2.23 during midday trading on Tuesday, hitting $184.60. 8,152,230 shares of the stock were exchanged, compared to its average volume of 2,869,938. The company has a debt-to-equity ratio of 0.78, a quick ratio of 1.90 and a current ratio of 1.90. Zscaler has a 52-week low of $114.63 and a 52-week high of $336.99. The business's fifty day simple moving average is $145.14 and its two-hundred day simple moving average is $193.63. The company has a market capitalization of $29.68 billion, a PE ratio of -439.52 and a beta of 0.96.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on ZS shares. Canaccord Genuity Group cut their price objective on Zscaler from $340.00 to $275.00 and set a "buy" rating for the company in a research report on Friday, February 27th. Oppenheimer cut their price objective on Zscaler from $280.00 to $250.00 and set an "outperform" rating for the company in a research report on Tuesday, March 10th. JPMorgan Chase & Co. cut their price objective on Zscaler from $354.00 to $267.00 and set an "overweight" rating for the company in a research report on Friday, February 20th. UBS Group reiterated a "buy" rating on shares of Zscaler in a research report on Wednesday, May 20th. Finally, Morgan Stanley set a $155.00 price objective on Zscaler in a research report on Thursday. Two research analysts have rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating, eight have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $261.26.

More Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler reported third-quarter fiscal 2026 revenue of $850.5 million, up 25% year over year, with ARR also rising 25% to $3.525 billion. Free cash flow improved to $136 million, highlighting solid operating momentum. Article Title
• Positive Sentiment: The company issued FY 2026 EPS guidance of $4.10-$4.11, well above Wall Street’s $3.21 estimate, signaling management confidence in earnings growth. Article Title
• Positive Sentiment: Zscaler also guided Q4 EPS to $1.08-$1.09, ahead of the $0.83 consensus, reinforcing the upbeat outlook heading into the next quarter. Article Title
• Neutral Sentiment: Coverage ahead of earnings highlighted broader strength in cybersecurity stocks and AI-related demand, which helped set a favorable tone for ZS. Article Title
• Negative Sentiment: Some commentary noted Zscaler’s premium valuation still requires stronger execution to fully justify the stock’s price, which could limit upside if growth slows. Article Title

Insider Buying and Selling at Zscaler

In related news, insider Robert Schlossman sold 2,263 shares of the stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total transaction of $354,363.17. Following the completion of the sale, the insider directly owned 72,390 shares in the company, valued at approximately $11,335,550.10. This trade represents a 3.03% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Adam Geller sold 2,094 shares of the stock in a transaction on Wednesday, March 18th. The stock was sold at an average price of $153.53, for a total value of $321,491.82. Following the sale, the insider owned 46,949 shares of the company's stock, valued at approximately $7,208,079.97. This represents a 4.27% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 12,130 shares of company stock valued at $1,892,487 in the last quarter. Corporate insiders own 17.20% of the company's stock.

Hedge Funds Weigh In On Zscaler

Several institutional investors have recently bought and sold shares of the stock. Kentucky Retirement Systems Insurance Trust Fund raised its holdings in Zscaler by 1.4% during the third quarter. Kentucky Retirement Systems Insurance Trust Fund now owns 2,569 shares of the company's stock valued at $770,000 after buying an additional 36 shares in the last quarter. Parallel Advisors LLC grew its position in shares of Zscaler by 10.9% in the third quarter. Parallel Advisors LLC now owns 397 shares of the company's stock valued at $119,000 after purchasing an additional 39 shares during the last quarter. Smartleaf Asset Management LLC grew its position in shares of Zscaler by 7.5% in the second quarter. Smartleaf Asset Management LLC now owns 648 shares of the company's stock valued at $204,000 after purchasing an additional 45 shares during the last quarter. Larson Financial Group LLC grew its position in shares of Zscaler by 2.6% in the third quarter. Larson Financial Group LLC now owns 2,040 shares of the company's stock valued at $611,000 after purchasing an additional 52 shares during the last quarter. Finally, Crossmark Global Holdings Inc. grew its position in shares of Zscaler by 6.1% in the third quarter. Crossmark Global Holdings Inc. now owns 976 shares of the company's stock valued at $292,000 after purchasing an additional 56 shares during the last quarter. 46.45% of the stock is currently owned by institutional investors.

About Zscaler

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.

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