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

Zscaler (NASDAQ:ZS) released its earnings results on Tuesday. The company reported $1.08 earnings per share for the quarter, topping 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 business had revenue of $850.48 million for 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 Trading Up 1.2%

Shares of Zscaler stock traded up $2.23 during trading on Tuesday, hitting $184.60. 8,152,230 shares of the company were exchanged, compared to its average volume of 2,869,938. The firm has a market capitalization of $29.68 billion, a P/E ratio of -439.52 and a beta of 0.96. Zscaler has a 1-year low of $114.63 and a 1-year high of $336.99. The firm’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 current ratio of 1.90 and a quick ratio of 1.90.

Insiders Place Their Bets

In related news, insider Adam Geller sold 2,094 shares of the company’s stock in a transaction on Wednesday, March 18th. The shares were sold at an average price of $153.53, for a total value of $321,491.82. Following the completion of the sale, the insider owned 46,949 shares in the company, valued at $7,208,079.97. This represents a 4.27% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CFO Kevin Rubin sold 1,682 shares of the company’s stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total transaction of $263,384.38. Following the completion of the sale, the chief financial officer owned 46,479 shares of the company’s stock, valued at approximately $7,278,146.61. This represents a 3.49% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 12,130 shares of company stock worth $1,892,487 over the last 90 days. 17.20% of the stock is currently owned by corporate insiders.

Institutional Trading of Zscaler

A number of large investors have recently made changes to their positions in ZS. Price T Rowe Associates Inc. MD increased its position in shares of Zscaler by 43.3% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 2,572,358 shares of the company’s stock valued at $578,576,000 after buying an additional 777,414 shares in the last quarter. AQR Capital Management LLC increased its position 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 in the last quarter. Alyeska Investment Group L.P. bought a new stake in shares of Zscaler in the 3rd quarter valued at $109,440,000. First Trust Advisors LP increased its position 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 in the last quarter. Finally, Morgan Stanley increased its position 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 in the last quarter. Institutional investors own 46.45% of the company’s stock.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on ZS shares. Wells Fargo & Company started coverage on Zscaler in a research report on Tuesday, March 3rd. They set an “overweight” rating and a $200.00 target price on the stock. Rosenblatt Securities decreased their target price on Zscaler from $250.00 to $223.00 and set a “buy” rating on the stock in a research report on Monday, May 18th. Oppenheimer decreased their target price on Zscaler from $280.00 to $250.00 and set an “outperform” rating on the stock in a research report on Tuesday, March 10th. KeyCorp lifted their target price on Zscaler from $160.00 to $190.00 and gave the stock an “overweight” rating in a research report on Monday, May 18th. Finally, UBS Group reissued a “buy” rating on shares of Zscaler in a research report on Wednesday, May 20th. Two research analysts have rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating, eight have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, Zscaler currently has an average rating of “Moderate Buy” and an average target price of $261.26.

Key Headlines Impacting Zscaler

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

Zscaler Company Profile

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.