Zscaler (NASDAQ:ZS) Releases Q4 2026 Earnings Guidance

Key Points

• Zscaler raised its Q4 2026 guidance, projecting EPS of $1.08 to $1.09 versus Wall Street’s $0.83 estimate. Revenue guidance of $875 million to $878 million was roughly in line with expectations.
• The company also updated FY 2026 EPS guidance to $4.10 to $4.11, signaling stronger profitability expectations for the year.
• Shares rose 1.2% on the news to $184.60, while analyst sentiment remained mixed but generally positive, with an average “Moderate Buy” rating and a consensus price target of $261.26.

Zscaler (NASDAQ:ZS - Get Free Report) updated its fourth quarter 2026 earnings guidance on Tuesday. The company provided earnings per share (EPS) guidance of 1.080-1.090 for the period, compared to the consensus estimate of 0.830. The company issued revenue guidance of $875.0 million-$878.0 million, compared to the consensus revenue estimate of $878.5 million. Zscaler also updated its FY 2026 guidance to 4.100-4.110 EPS.

Analysts Set New Price Targets

A number of equities analysts have issued reports on the stock. Citigroup downgraded Zscaler from a "buy" rating to a "neutral" rating in a report on Monday, May 18th. Needham & Company LLC dropped their price objective on Zscaler from $310.00 to $180.00 and set a "buy" rating for the company in a report on Friday, February 27th. Citizens Jmp dropped their price objective on Zscaler from $290.00 to $210.00 and set a "market outperform" rating for the company in a report on Friday, May 1st. Piper Sandler upgraded Zscaler from a "neutral" rating to a "neutral" rating in a report on Monday, May 18th. Finally, The Goldman Sachs Group dropped their price objective on Zscaler from $290.00 to $257.00 and set a "neutral" rating for the company in a report on Monday, March 2nd. Two investment 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 stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $261.26.

Zscaler Trading Up 1.2%

ZS stock traded up $2.23 during midday trading on Tuesday, hitting $184.60. 6,999,400 shares of the company's stock were exchanged, compared to its average volume of 2,863,154. The stock's fifty day moving average price is $145.14 and its 200-day moving average price is $193.63. The company has a debt-to-equity ratio of 0.78, a quick ratio of 1.90 and a current ratio of 1.90. The company has a market cap of $29.68 billion, a PE ratio of -439.52 and a beta of 0.96. Zscaler has a one year low of $114.63 and a one year high of $336.99.

Zscaler (NASDAQ:ZS - Get Free Report) last posted its earnings results on Thursday, February 26th. The company reported $1.01 earnings per share for the quarter, topping the consensus estimate of $0.89 by $0.12. The firm had revenue of $815.75 million for the quarter, compared to analyst estimates of $798.92 million. Zscaler had a positive return on equity of 0.06% and a negative net margin of 2.25%.The company's revenue for the quarter was up 25.9% on a year-over-year basis. During the same period in the previous year, the company posted $0.78 earnings per share. Zscaler has set its Q3 2026 guidance at 1.000-1.010 EPS and its FY 2026 guidance at 3.990-4.020 EPS. Research analysts predict that Zscaler will post -0.03 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CEO Jagtar Singh Chaudhry sold 1,941 shares of the company's stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total value of $303,941.19. Following the completion of the transaction, the chief executive officer owned 345,916 shares in the company, valued at $54,166,986.44. This represents a 0.56% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Raj Judge sold 2,488 shares of the business's stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total value of $389,595.92. Following the completion of the sale, the executive vice president owned 67,906 shares in the company, valued at approximately $10,633,400.54. This trade represents a 3.53% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 12,130 shares of company stock valued at $1,892,487. 17.20% of the stock is owned by corporate insiders.

Institutional Trading of Zscaler

A number of hedge funds and other institutional investors have recently made changes to their positions in ZS. Price T Rowe Associates Inc. MD raised its holdings in shares of Zscaler by 43.3% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,572,358 shares of the company's stock valued at $578,576,000 after purchasing an additional 777,414 shares during the last quarter. AQR Capital Management LLC boosted its holdings in shares of Zscaler by 61.8% in the 3rd quarter. AQR Capital Management LLC now owns 1,941,571 shares of the company's stock valued at $576,083,000 after buying an additional 741,756 shares during the last quarter. Alyeska Investment Group L.P. acquired a new stake in shares of Zscaler in the 3rd quarter valued at approximately $109,440,000. First Trust Advisors LP boosted its holdings in shares of Zscaler by 15.9% in the 4th quarter. First Trust Advisors LP now owns 2,582,897 shares of the company's stock valued at $580,945,000 after buying an additional 354,763 shares during the last quarter. Finally, Morgan Stanley boosted its holdings in shares of Zscaler by 25.4% in the 4th quarter. Morgan Stanley now owns 1,557,640 shares of the company's stock valued at $350,345,000 after buying an additional 315,498 shares during the last quarter. 46.45% of the stock is currently owned by institutional investors and hedge funds.

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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