Zscaler (NASDAQ:ZS) Releases Q1 2027 Earnings Guidance

Zscaler (NASDAQ:ZS) updated its first quarter 2027 earnings guidance on Thursday. The company provided earnings per share guidance of 1.150-1.160 for the period, compared to the consensus EPS estimate of 0.860. The company issued revenue guidance of $935.0 million-$939.0 million, compared to the consensus revenue estimate of $925.5 million. Zscaler also updated its FY 2027 guidance to 4.860-4.900 EPS.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on ZS shares. Wedbush restated an “outperform” rating and issued a $220.00 price objective on shares of Zscaler in a research report on Wednesday, June 10th. Wolfe Research restated an “outperform” rating and set a $150.00 price target on shares of Zscaler in a report on Thursday, June 11th. Scotiabank lowered their price target on Zscaler from $190.00 to $175.00 and set a “sector outperform” rating for the company in a research report on Wednesday, May 27th. Jefferies Financial Group reiterated a “buy” rating and issued a $220.00 price objective on shares of Zscaler in a report on Wednesday. Finally, Stephens reissued an “overweight” rating and set a $200.00 price objective on shares of Zscaler in a research report on Friday, June 12th. Thirty-four analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $213.10.

Zscaler Stock Up 2.9%

Shares of Zscaler stock opened at $177.80 on Friday. Zscaler has a 1 year low of $114.63 and a 1 year high of $336.99. The firm has a market cap of $28.75 billion, a price-to-earnings ratio of -370.41, a PEG ratio of 101.67 and a beta of 0.95. The company has a 50-day moving average of $160.51 and a 200 day moving average of $150.39. The company has a debt-to-equity ratio of 0.72, a current ratio of 1.86 and a quick ratio of 1.86.

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

Insider Buying and Selling

In related news, insider Adam Geller sold 2,817 shares of the company’s stock in a transaction that occurred on Monday, June 22nd. The stock was sold at an average price of $122.60, for a total value of $345,364.20. Following 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 transaction was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Robert Schlossman sold 3,146 shares of the firm’s stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $126.43, for a total value of $397,748.78. Following the transaction, the insider directly owned 69,366 shares of the company’s stock, valued at approximately $8,769,943.38. This trade represents a 4.34% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 16,772 shares of company stock valued at $2,139,799. 17.20% of the stock is owned by company insiders.

Key Stories Impacting Zscaler

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 Trading of Zscaler

Institutional investors have recently bought and sold shares of the company. Price T Rowe Associates Inc. MD increased its stake in Zscaler by 43.3% during 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 purchasing an additional 777,414 shares in the last quarter. AQR Capital Management LLC raised its holdings in Zscaler by 61.8% in the 3rd quarter. AQR Capital Management LLC now owns 1,941,571 shares of the company’s stock worth $576,083,000 after acquiring an additional 741,756 shares during the last quarter. Alyeska Investment Group L.P. purchased a new stake in Zscaler during the 3rd quarter valued at $109,440,000. First Trust Advisors LP increased 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 worth $580,945,000 after purchasing an additional 354,763 shares in the last quarter. Finally, Morgan Stanley lifted its holdings in shares of Zscaler by 25.4% during the fourth quarter. Morgan Stanley now owns 1,557,640 shares of the company’s stock valued at $350,345,000 after purchasing an additional 315,498 shares in the last quarter. 46.45% of the stock is owned by hedge funds and other institutional investors.

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.