Zscaler (NASDAQ:ZS) Issues Q1 2026 Earnings Guidance

Key Points

• Zscaler has provided an optimistic Q1 2026 earnings guidance with EPS projected at 0.850-0.860, significantly above the consensus estimate of 0.490, and revenue guidance of $772.0-$774.0 million compared to the consensus of $750.5 million.
• The stock recently traded down 0.9% to $274.57 despite positive analyst ratings, including an upgrade to "overweight" from Wells Fargo and price targets ranging from $260.00 to $385.00.
• Insider selling was notable, with significant shares sold by company directors, indicating potential caution, despite institutional ownership amounting to 46.45%.

Zscaler (NASDAQ:ZS - Get Free Report) issued an update on its first quarter 2026 earnings guidance on Tuesday morning. The company provided EPS guidance of 0.850-0.860 for the period, compared to the consensus EPS estimate of 0.490. The company issued revenue guidance of $772.0 million-$774.0 million, compared to the consensus revenue estimate of $750.5 million. Zscaler also updated its FY 2026 guidance to 3.640-3.680 EPS.

Zscaler Price Performance

ZS traded up $5.95 on Friday, reaching $274.20. 1,620,011 shares of the company's stock were exchanged, compared to its average volume of 1,603,908. The stock has a market cap of $42.69 billion, a PE ratio of -1,015.56, a P/E/G ratio of 226.46 and a beta of 1.05. Zscaler has a twelve month low of $153.45 and a twelve month high of $318.46. The stock's fifty day moving average price is $285.29 and its 200-day moving average price is $251.14.

Zscaler (NASDAQ:ZS - Get Free Report) last posted its quarterly 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 firm had revenue of $719.23 million for the quarter, compared to analyst estimates of $707.15 million. Zscaler had a negative net margin of 1.55% and a negative return on equity of 0.49%. Zscaler's quarterly revenue was up 21.3% on a year-over-year basis. During the same period in the previous year, the business posted $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. As a group, research analysts predict that Zscaler will post -0.1 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on ZS shares. JMP Securities restated a "market outperform" rating and set a $355.00 price target on shares of Zscaler in a research report on Wednesday. Evercore ISI boosted their price target on shares of Zscaler from $290.00 to $320.00 and gave the stock an "outperform" rating in a research report on Wednesday. Canaccord Genuity Group boosted their target price on shares of Zscaler from $320.00 to $340.00 and gave the company a "buy" rating in a report on Thursday. Robert W. Baird lifted their price target on shares of Zscaler from $330.00 to $345.00 and gave the company an "outperform" rating in a research report on Wednesday. Finally, Susquehanna upped their price objective on Zscaler from $320.00 to $340.00 and gave the company a "positive" rating in a report on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Zscaler has an average rating of "Moderate Buy" and an average price target of $307.00.

Insider Transactions at Zscaler

In other news, insider Syam Nair sold 4,064 shares of the company's stock in a transaction that occurred on Tuesday, June 17th. The shares were sold at an average price of $303.70, for a total value of $1,234,236.80. Following the transaction, the insider directly owned 106,659 shares in the company, valued at approximately $32,392,338.30. This represents a 3.67% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Adam Geller sold 3,662 shares of the company's stock in a transaction that occurred on Wednesday, June 18th. The stock was sold at an average price of $306.72, for a total transaction of $1,123,208.64. Following the completion of the transaction, the insider 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 disclosure for this sale can be found here. In the last 90 days, insiders sold 143,305 shares of company stock worth $43,199,936. 18.10% of the stock is owned by company insiders.

Hedge Funds Weigh In On Zscaler

Several large investors have recently made changes to their positions in the stock. Raymond James Financial Inc. lifted its holdings in shares of Zscaler by 106.8% in the 2nd quarter. Raymond James Financial Inc. now owns 290,909 shares of the company's stock worth $91,328,000 after acquiring an additional 150,254 shares during the last quarter. Vident Advisory LLC lifted its holdings in shares of Zscaler by 37.6% in the 2nd quarter. Vident Advisory LLC now owns 223,494 shares of the company's stock worth $70,164,000 after acquiring an additional 61,023 shares during the last quarter. Canada Pension Plan Investment Board lifted its holdings in shares of Zscaler by 85.1% in the 2nd quarter. Canada Pension Plan Investment Board now owns 190,154 shares of the company's stock worth $59,697,000 after acquiring an additional 87,440 shares during the last quarter. Bamco Inc. NY lifted its holdings in shares of Zscaler by 5.0% in the 2nd quarter. Bamco Inc. NY now owns 184,439 shares of the company's stock worth $57,903,000 after acquiring an additional 8,785 shares during the last quarter. Finally, CANADA LIFE ASSURANCE Co lifted its holdings in shares of Zscaler by 7.9% in the 2nd quarter. CANADA LIFE ASSURANCE Co now owns 175,856 shares of the company's stock worth $55,252,000 after acquiring an additional 12,812 shares during the last quarter. 46.45% of the stock is currently owned by institutional investors and hedge funds.

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.