Zscaler (NASDAQ:ZS) Issues FY 2025 Earnings Guidance

Zscaler (NASDAQ:ZS - Get Free Report) issued an update on its FY 2025 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 3.180-3.19 for the period, compared to the consensus estimate of 3.080. The company issued revenue guidance of $2.7 billion-$2.7 billion, compared to the consensus revenue estimate of $2.7 billion. Zscaler also updated its Q4 2025 guidance to EPS.

Zscaler Price Performance

NASDAQ:ZS traded up $22.92 during mid-day trading on Friday, reaching $274.03. The stock had a trading volume of 9,940,403 shares, compared to its average volume of 2,045,319. Zscaler has a 12 month low of $153.45 and a 12 month high of $276.49. The stock has a market capitalization of $42.40 billion, a PE ratio of -1,096.12 and a beta of 1.14. The stock has a 50-day simple moving average of $220.62 and a two-hundred day simple moving average of $206.33.

Zscaler (NASDAQ:ZS - Get Free Report) last issued its quarterly earnings data on Thursday, May 29th. The company reported $0.84 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.76 by $0.08. Zscaler had a negative net margin of 1.58% and a negative return on equity of 0.75%. The business had revenue of $678.03 million during the quarter, compared to analyst estimates of $667.13 million. During the same quarter last year, the business earned $0.88 EPS. The firm's quarterly revenue was up 22.6% on a year-over-year basis. Equities analysts expect that Zscaler will post -0.1 EPS for the current year.

Analysts Set New Price Targets

ZS has been the subject of several analyst reports. Jefferies Financial Group lowered their price objective on Zscaler from $245.00 to $240.00 and set a "buy" rating for the company in a research note on Monday, March 31st. Truist Financial restated a "buy" rating and set a $300.00 price target (up previously from $260.00) on shares of Zscaler in a research note on Friday. Bank of America upgraded Zscaler from a "neutral" rating to a "buy" rating and increased their price target for the stock from $215.00 to $240.00 in a research note on Friday, March 7th. Stifel Nicolaus upped their price target on shares of Zscaler from $270.00 to $295.00 and gave the company a "buy" rating in a research note on Friday. Finally, JMP Securities raised their target price on Zscaler from $240.00 to $310.00 and gave the stock a "market outperform" rating in a research note on Friday. Ten investment analysts have rated the stock with a hold rating and twenty-seven have assigned a buy rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $275.12.

Insider Activity

In related news, insider Syam Nair sold 28,947 shares of the firm's stock in a transaction that occurred on Friday, May 16th. The stock was sold at an average price of $250.00, for a total transaction of $7,236,750.00. Following the completion of the transaction, the insider now owns 110,566 shares of the company's stock, valued at $27,641,500. This trade represents a 20.75% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Robert Schlossman sold 3,590 shares of the firm's stock in a transaction on Friday, May 16th. The shares were sold at an average price of $250.00, for a total value of $897,500.00. Following the transaction, the insider now owns 100,230 shares of the company's stock, valued at $25,057,500. The trade was a 3.46% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 241,771 shares of company stock worth $50,165,040 in the last quarter. 18.10% of the stock is owned by company insiders.

Hedge Funds Weigh In On Zscaler

Hedge funds have recently bought and sold shares of the company. NewEdge Advisors LLC lifted its stake in shares of Zscaler by 8.2% in the first quarter. NewEdge Advisors LLC now owns 4,899 shares of the company's stock worth $972,000 after buying an additional 370 shares in the last quarter. Integrated Wealth Concepts LLC raised its holdings in Zscaler by 19.9% in the 1st quarter. Integrated Wealth Concepts LLC now owns 1,439 shares of the company's stock worth $285,000 after acquiring an additional 239 shares during the last quarter. Finally, 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 worth $558,000 after acquiring an additional 238 shares during the last quarter. 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.