Zscaler (NASDAQ:ZS) Issues FY 2026 Earnings Guidance

Key Points

• Zscaler has issued FY 2026 earnings guidance with expected EPS of 3.640-3.680, significantly above the consensus estimate of 2.230.
• The company also raised its Q1 2026 EPS guidance to 0.850-0.860, indicating optimistic growth expectations.
• Recent analyst upgrades have increased Zscaler’s price targets, with Morgan Stanley raising its objective from $280.00 to $320.00.

Zscaler (NASDAQ:ZS - Get Free Report) issued an update on its FY 2026 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of 3.640-3.680 for the period, compared to the consensus estimate of 2.230. The company issued revenue guidance of $3.3 billion-$3.3 billion, compared to the consensus revenue estimate of $3.2 billion. Zscaler also updated its Q1 2026 guidance to 0.850-0.860 EPS.

Zscaler Trading Up 2.2%

Shares of ZS traded up $5.95 during trading hours on Friday, reaching $274.20. 1,620,011 shares of the stock traded hands, compared to its average volume of 1,603,908. 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 two-hundred day moving average price is $251.14. The company has a market cap of $42.69 billion, a P/E ratio of -1,015.56, a price-to-earnings-growth ratio of 226.46 and a beta of 1.05.

Zscaler (NASDAQ:ZS - Get Free Report) last released its earnings results on Tuesday, September 2nd. The company reported $0.89 earnings per share for the quarter, beating analysts' consensus estimates of $0.80 by $0.09. Zscaler had a negative net margin of 1.55% and a negative return on equity of 0.49%. The company had revenue of $719.23 million for the quarter, compared to analysts' expectations of $707.15 million. During the same quarter in the previous year, the company earned $0.88 EPS. Zscaler's revenue for the quarter was up 21.3% on a year-over-year basis. Zscaler has set its FY 2026 guidance at 3.640-3.680 EPS. Q1 2026 guidance at 0.850-0.860 EPS. On average, research analysts forecast that Zscaler will post -0.1 EPS for the current year.

Analyst Upgrades and Downgrades

ZS has been the topic of a number of analyst reports. Evercore ISI lifted their target price on shares of Zscaler from $290.00 to $320.00 and gave the company an "outperform" rating in a research note on Wednesday. B. Riley started coverage on shares of Zscaler in a research note on Tuesday, August 26th. They issued a "neutral" rating and a $275.00 price target on the stock. Guggenheim reiterated a "neutral" rating on shares of Zscaler in a research note on Wednesday. BMO Capital Markets boosted their price target on shares of Zscaler from $295.00 to $315.00 and gave the stock an "outperform" rating in a research note on Wednesday. Finally, Scotiabank decreased their price target on shares of Zscaler from $360.00 to $334.00 and set a "sector outperform" rating on the stock in a research note on Wednesday. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $307.00.

Insider Activity

In other news, EVP Raj Judge sold 2,957 shares of the company's stock in a transaction dated 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 directly owned 76,289 shares in the company, valued at approximately $23,168,969.30. This represents a 3.73% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Jagtar Singh Chaudhry sold 2,849 shares of the company's stock in a transaction dated Tuesday, June 17th. The shares were 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 in the company, valued at $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. In the last three months, insiders sold 143,305 shares of company stock worth $43,199,936. 18.10% of the stock is owned by insiders.

Institutional Trading of Zscaler

Several hedge funds have recently made changes to their positions in ZS. Raymond James Financial Inc. increased its stake in shares of Zscaler by 106.8% during the second quarter. Raymond James Financial Inc. now owns 290,909 shares of the company's stock worth $91,328,000 after purchasing an additional 150,254 shares in the last quarter. Canada Pension Plan Investment Board increased its stake in shares of Zscaler by 85.1% during the second quarter. Canada Pension Plan Investment Board now owns 190,154 shares of the company's stock worth $59,697,000 after purchasing an additional 87,440 shares in the last quarter. Vident Advisory LLC increased its stake in shares of Zscaler by 37.6% during the second quarter. Vident Advisory LLC now owns 223,494 shares of the company's stock worth $70,164,000 after purchasing an additional 61,023 shares in the last quarter. Maytus Capital Management LLC purchased a new stake in shares of Zscaler during the second quarter worth about $10,140,000. Finally, Corient Private Wealth LLC increased its stake in shares of Zscaler by 99.9% during the second quarter. Corient Private Wealth LLC now owns 62,046 shares of the company's stock worth $19,479,000 after purchasing an additional 31,003 shares in the last quarter. 46.45% of the stock is currently owned by hedge funds and other institutional investors.

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.