Zscaler (NASDAQ:ZS) Releases Q3 2026 Earnings Guidance

by · The Cerbat Gem

Zscaler (NASDAQ:ZS – Get Free Report) issued an update on its third quarter 2026 earnings guidance on Thursday morning. The company provided EPS guidance of 1.000-1.010 for the period, compared to the consensus EPS estimate of 0.950. The company issued revenue guidance of $834.0 million-$836.0 million, compared to the consensus revenue estimate of $831.4 million. Zscaler also updated its FY 2026 guidance to 3.990-4.020 EPS.

Analysts Set New Price Targets

Several analysts have issued reports on the stock. Royal Bank Of Canada reiterated an “outperform” rating and issued a $250.00 price objective on shares of Zscaler in a report on Wednesday, February 11th. Capital One Financial set a $320.00 price target on Zscaler and gave the company an “overweight” rating in a report on Wednesday, November 26th. Mizuho dropped their price objective on Zscaler from $310.00 to $265.00 and set an “outperform” rating on the stock in a report on Tuesday, February 17th. Barclays set a $220.00 target price on Zscaler in a research note on Thursday, February 19th. Finally, Stephens dropped their price target on shares of Zscaler from $340.00 to $225.00 and set an “overweight” rating for the company in a research note on Monday. One equities research analyst has rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Zscaler presently has an average rating of “Moderate Buy” and a consensus price target of $279.37.

View Our Latest Research Report on Zscaler

Zscaler Stock Down 15.3%

Zscaler stock traded down $25.65 during midday trading on Friday, reaching $141.71. The stock had a trading volume of 4,077,965 shares, compared to its average volume of 2,492,037. The stock has a market capitalization of $22.60 billion, a P/E ratio of -547.14, a price-to-earnings-growth ratio of 317.40 and a beta of 1.02. The firm’s fifty day simple moving average is $200.63 and its 200-day simple moving average is $256.06. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.82 and a current ratio of 1.82. Zscaler has a 1-year low of $141.56 and a 1-year high of $336.99.

Zscaler (NASDAQ:ZS – Get Free Report) last issued its quarterly 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. Zscaler had a negative net margin of 1.45% and a negative return on equity of 0.12%. The company had revenue of $815.75 million during the quarter, compared to analysts’ expectations of $798.92 million. During the same period last year, the business earned $0.78 EPS. The business’s quarterly revenue was up 25.9% on a year-over-year basis. Zscaler has set its Q3 2026 guidance at 1.000-1.010 EPS and its FY 2026 guidance at 3.990-4.020 EPS. As a group, analysts expect that Zscaler will post -0.1 EPS for the current fiscal year.

Insider Buying and Selling

In other Zscaler news, CEO Jagtar Singh Chaudhry sold 2,843 shares of the firm’s stock in a transaction on Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total transaction of $656,221.26. Following the completion of the sale, the chief executive officer owned 347,857 shares of the company’s stock, valued at $80,292,352.74. This trade represents a 0.81% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Adam Geller sold 1,620 shares of the stock in a transaction dated Wednesday, December 17th. The shares were sold at an average price of $232.79, for a total transaction of $377,119.80. Following the completion of the transaction, the insider directly owned 50,528 shares in the company, valued at $11,762,413.12. The trade was a 3.11% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 19,350 shares of company stock worth $4,471,509 in the last 90 days. 17.20% of the stock is owned by corporate insiders.

Key Stories Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

  • Positive Sentiment: Zscaler reported Q2 results that beat consensus on revenue and adjusted EPS, with revenue up ~26% year-over-year and ARR growth of ~25%; management raised fiscal ARR guidance and lifted FY/Q3 EPS outlook—evidence of continued demand and improving profitability metrics. Zscaler Q2 Earnings Surpass Estimates
  • Positive Sentiment: Zscaler expanded its footprint in India with an AI & Cyber Threat Research Center in partnership with Bharti Airtel — a strategic move to boost product development, local sales motion and presence in a large growth market. Zscaler Airtel AI Cyber Center Opens
  • Neutral Sentiment: Earnings-call commentary highlighted strong demand for Zscaler’s AI security offerings and platform, but management also discussed acquisition-related churn and competitive pressure — useful color for determining whether ARR momentum is sustainable. Q2 2026 Earnings Call Transcript
  • Negative Sentiment: Despite beats, shares fell after the quarter because Zscaler reported a wider GAAP net loss driven by higher sales, marketing and R&D spending and investors reacted to softer/uncertain revenue guidance in parts — a classic beat-but-disappoint reaction when margins or cash metrics worsen. Zscaler posts wider quarterly loss
  • Negative Sentiment: Several sell-side analysts cut price targets (Needham, Piper Sandler) or updated ratings after the print, narrowing upside and signaling reduced near-term enthusiasm; that analyst revision activity is pressuring the stock. Analyst Price Target Changes (Benzinga)

Institutional Trading of Zscaler

Institutional investors have recently modified their holdings of the stock. Kentucky Retirement Systems Insurance Trust Fund lifted its holdings in shares of Zscaler by 1.4% during the 3rd quarter. Kentucky Retirement Systems Insurance Trust Fund now owns 2,569 shares of the company’s stock worth $770,000 after acquiring an additional 36 shares during the period. Parallel Advisors LLC lifted its stake in Zscaler by 10.9% during the third quarter. Parallel Advisors LLC now owns 397 shares of the company’s stock worth $119,000 after purchasing an additional 39 shares during the last quarter. Smartleaf Asset Management LLC boosted its holdings in shares of Zscaler by 7.5% in the 2nd quarter. Smartleaf Asset Management LLC now owns 648 shares of the company’s stock valued at $204,000 after purchasing an additional 45 shares in the last quarter. Larson Financial Group LLC boosted its holdings in shares of Zscaler by 2.6% in the 3rd quarter. Larson Financial Group LLC now owns 2,040 shares of the company’s stock valued at $611,000 after purchasing an additional 52 shares in the last quarter. Finally, Crossmark Global Holdings Inc. increased its stake in shares of Zscaler by 6.1% in the 3rd quarter. Crossmark Global Holdings Inc. now owns 976 shares of the company’s stock valued at $292,000 after purchasing an additional 56 shares during the last quarter. 46.45% of the stock is currently owned by institutional investors.

Zscaler Company Profile

(Get Free Report)

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.

Further Reading