Zscaler (NASDAQ:ZS) Releases FY 2027 Earnings Guidance

Zscaler (NASDAQ:ZS) issued an update on its FY 2027 earnings guidance on Thursday morning. The company provided EPS guidance of 4.860-4.900 for the period, compared to the consensus earnings per share estimate of 3.700. The company issued revenue guidance of $3.9 billion-$3.9 billion, compared to the consensus revenue estimate of $3.9 billion. Zscaler also updated its Q1 2027 guidance to 1.150-1.160 EPS.

Wall Street Analysts Forecast Growth

ZS has been the subject of several research analyst reports. Wells Fargo & Company boosted their target price on Zscaler from $180.00 to $210.00 and gave the stock an “overweight” rating in a research note on Monday, August 17th. Truist Financial set a $210.00 target price on Zscaler in a report on Wednesday, May 27th. Piper Sandler reduced their price objective on shares of Zscaler from $185.00 to $160.00 and set a “neutral” rating on the stock in a research note on Wednesday, May 27th. Wedbush reiterated an “outperform” rating and issued a $220.00 target price on shares of Zscaler in a report on Wednesday, June 10th. Finally, Weiss Ratings upgraded Zscaler from a “sell (e+)” rating to a “sell (d-)” rating in a report on Thursday, August 27th. Thirty-four research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $213.10.

Zscaler Price Performance

Shares of NASDAQ:ZS opened at $177.80 on Friday. Zscaler has a twelve month low of $114.63 and a twelve month high of $336.99. The stock’s 50 day moving average is $160.51 and its 200-day moving average is $150.39. The company has a quick ratio of 1.86, a current ratio of 1.86 and a debt-to-equity ratio of 0.72. The firm has a market capitalization of $28.75 billion, a price-to-earnings ratio of -370.41, a PEG ratio of 101.67 and a beta of 0.95.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings results on Thursday, September 3rd. The company reported $1.19 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.09 by $0.10. The business had revenue of $898.18 million during the quarter, compared to the consensus estimate of $876.96 million. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%. Zscaler’s revenue was up 24.9% compared to the same quarter last year. During the same quarter last year, the firm posted $0.89 EPS. Zscaler has set its FY 2027 guidance at 4.860-4.900 EPS and its Q1 2027 guidance at 1.150-1.160 EPS. Sell-side analysts forecast that Zscaler will post 0.13 EPS for the current fiscal year.

Insider Buying and Selling at Zscaler

In other news, CEO Jagtar Chaudhry sold 2,878 shares of the business’s stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $126.43, for a total transaction of $363,865.54. Following the completion of the sale, the chief executive officer directly owned 343,038 shares of the company’s stock, valued at $43,370,294.34. The trade was a 0.83% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Adam Geller sold 2,817 shares of the company’s stock in a transaction dated Monday, June 22nd. The stock was sold at an average price of $122.60, for a total transaction of $345,364.20. Following the completion of the sale, the insider owned 42,314 shares in the company, valued at $5,187,696.40. This represents a 6.24% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 16,772 shares of company stock valued at $2,139,799 over the last three months. Corporate insiders own 17.20% of the company’s stock.

More Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler reported fiscal Q4 revenue of $898.2 million, up 24.9% year over year and above the $877.0 million consensus estimate. Adjusted EPS of $1.19 also exceeded expectations of $1.09. Zscaler Q4 Earnings and Revenues Top Estimates
• Positive Sentiment: Annual recurring revenue increased 25% to $3.77 billion, while non-GAAP operating margin reached a record 24%. Management cited demand for AI-powered security, large deals, non-seat-based products and its Agentic SecOps offering as growth drivers. Zscaler stock soars on earnings beat, upbeat guidance
• Positive Sentiment: Fiscal Q1 2027 guidance was ahead of analyst expectations, with revenue of $935 million to $939 million and adjusted EPS of $1.15 to $1.16 versus consensus estimates of $925.5 million and $0.86, respectively. Full-year adjusted EPS guidance of $4.86 to $4.90 also exceeded the $3.70 consensus. Zscaler Announces Strong Fourth Quarter and Fiscal 2026 Financial Results
• Neutral Sentiment: Zscaler is restructuring and eliminating approximately 3% of its workforce to redirect resources toward AI and other strategic initiatives. The move could improve efficiency but introduces execution and morale risks. Zscaler forecasts FY2027 growth as it restructures
• Negative Sentiment: Fiscal 2027 revenue and ARR growth are expected to slow to roughly 17%, compared with 25% in fiscal 2026. Excluding the Red Canary acquisition, fiscal 2026 revenue growth was already 20%, intensifying concerns about deceleration. Zscaler Issued New Guidance
• Negative Sentiment: Despite strong adjusted profitability, Zscaler still posted a $3.4 million GAAP quarterly loss and a $63.2 million full-year loss. Fourth-quarter free-cash-flow margin fell to 7% from 24% because of substantially higher capital expenditures. Zscaler Loss Narrows As Revenue Soars

Institutional Investors Weigh In On Zscaler

Institutional investors and hedge funds have recently bought and sold shares of the stock. Integrated Wealth Concepts LLC grew its stake in shares of 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 in the last quarter. NewEdge Advisors LLC lifted its position in shares of Zscaler by 8.2% during the first quarter. NewEdge Advisors LLC now owns 4,899 shares of the company’s stock valued at $972,000 after purchasing an additional 370 shares in the last quarter. Empowered Funds LLC boosted its holdings in Zscaler by 9.2% during the first quarter. Empowered Funds LLC now owns 2,811 shares of the company’s stock worth $558,000 after purchasing an additional 238 shares during the last quarter. Sivia Capital Partners LLC purchased a new position in Zscaler during the second quarter worth about $252,000. Finally, Jump Financial LLC purchased a new position in Zscaler during the second quarter worth about $3,019,000. 46.45% of the stock is owned by hedge funds and other institutional investors.

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.