Zscaler (NASDAQ:ZS) Releases Q4 2026 Earnings Guidance

Zscaler (NASDAQ:ZS) issued an update on its fourth quarter 2026 earnings guidance on Tuesday morning. 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.

Zscaler Price Performance

NASDAQ:ZS traded up $2.23 on Tuesday, reaching $184.60. The stock had a trading volume of 8,152,230 shares, compared to its average volume of 2,869,938. The company 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 company has a quick ratio of 1.90, a current ratio of 1.90 and a debt-to-equity ratio of 0.78. The stock has a fifty day moving average price of $145.14 and a 200-day moving average price of $193.63.

Zscaler (NASDAQ:ZS) last released its quarterly earnings results on Tuesday, May 26th. The company reported $1.08 EPS for the quarter, beating analysts’ consensus estimates of $1.00 by $0.08. The firm had revenue of $850.48 million for the quarter, compared to analyst estimates of $835.60 million. Zscaler had a negative net margin of 2.25% and a positive return on equity of 0.06%. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. Research analysts forecast that Zscaler will post -0.03 EPS for the current year.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on ZS shares. The Goldman Sachs Group reduced their target price on shares of Zscaler from $290.00 to $257.00 and set a “neutral” rating on the stock in a research report on Monday, March 2nd. TD Cowen reduced their target price on shares of Zscaler from $330.00 to $260.00 and set a “buy” rating on the stock in a research report on Tuesday, February 24th. Zacks Research lowered shares of Zscaler from a “hold” rating to a “strong sell” rating in a research report on Wednesday, April 29th. Wells Fargo & Company started coverage on shares of Zscaler in a research report on Tuesday, March 3rd. They set an “overweight” rating and a $200.00 target price on the stock. Finally, UBS Group reiterated a “buy” rating on shares of Zscaler in a research report on Wednesday, May 20th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating, eight have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $261.26.

Insider Buying and Selling at Zscaler

In related news, insider Adam Geller sold 2,094 shares of Zscaler stock in a transaction on Wednesday, March 18th. The stock was sold at an average price of $153.53, for a total transaction of $321,491.82. Following the completion of the sale, the insider directly owned 46,949 shares of the company’s stock, valued at $7,208,079.97. The trade was a 4.27% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Robert Schlossman sold 2,263 shares of Zscaler stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total value of $354,363.17. Following the sale, the insider directly owned 72,390 shares of the company’s stock, valued at approximately $11,335,550.10. This trade represents a 3.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 12,130 shares of company stock valued at $1,892,487 over the last quarter. 17.20% of the stock is owned by corporate insiders.

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

Institutional Investors Weigh In On Zscaler

Several hedge funds have recently bought and sold shares of ZS. Binnacle Investments Inc acquired a new stake in Zscaler in the third quarter worth $25,000. AlphaCentric Advisors LLC acquired a new stake in Zscaler in the fourth quarter worth $29,000. Mcguire Capital Advisors Inc. acquired a new stake in Zscaler in the fourth quarter worth $32,000. Strive Financial Group LLC acquired a new stake in Zscaler in the fourth quarter worth $39,000. Finally, Sumitomo Mitsui Financial Group Inc. raised its holdings in Zscaler by 105.5% in the fourth quarter. Sumitomo Mitsui Financial Group Inc. now owns 215 shares of the company’s stock worth $49,000 after purchasing an additional 4,111 shares during the period. 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.