Zscaler (NASDAQ:ZS) Releases Q2 2026 Earnings Guidance

Zscaler (NASDAQ:ZS) issued an update on its second quarter 2026 earnings guidance on Tuesday morning. The company provided earnings per share guidance of 0.890-0.900 for the period, compared to the consensus earnings per share estimate of 0.520. The company issued revenue guidance of $797.0 million-$799.0 million, compared to the consensus revenue estimate of $795.4 million. Zscaler also updated its FY 2026 guidance to 3.780-3.820 EPS.

Zscaler Stock Performance

Shares of NASDAQ:ZS traded up $9.38 during midday trading on Tuesday, reaching $289.73. 2,899,150 shares of the company traded hands, compared to its average volume of 1,964,253. The firm’s fifty day moving average price is $305.66 and its two-hundred day moving average price is $291.08. The firm has a market capitalization of $45.86 billion, a price-to-earnings ratio of -1,073.07 and a beta of 1.06. Zscaler has a 12 month low of $164.78 and a 12 month high of $336.99. The company has a quick ratio of 2.01, a current ratio of 2.01 and a debt-to-equity ratio of 0.95.

Zscaler (NASDAQ:ZS) last announced its quarterly earnings results on Tuesday, November 25th. The company reported $0.96 EPS for the quarter, beating the consensus estimate of $0.85 by $0.11. The firm had revenue of $788.11 million during the quarter, compared to the consensus estimate of $773.86 million. Zscaler had a negative net margin of 1.55% and a negative return on equity of 0.47%. Zscaler has set its FY 2026 guidance at 3.780-3.820 EPS. Q2 2026 guidance at 0.890-0.900 EPS. On average, equities analysts expect that Zscaler will post -0.1 earnings per share for the current year.

Analyst Ratings Changes

Several research firms have weighed in on ZS. Mizuho raised their price target on Zscaler from $310.00 to $325.00 and gave the company a “neutral” rating in a report on Monday, November 17th. Robert W. Baird increased their price objective on Zscaler from $330.00 to $345.00 and gave the company an “outperform” rating in a research report on Wednesday, September 3rd. Berenberg Bank initiated coverage on Zscaler in a report on Tuesday, November 18th. They set a “buy” rating and a $400.00 price objective on the stock. Royal Bank Of Canada upped their target price on Zscaler from $350.00 to $366.00 and gave the stock an “outperform” rating in a research note on Wednesday, November 12th. Finally, Scotiabank decreased their price target on shares of Zscaler from $360.00 to $334.00 and set a “sector outperform” rating on the stock in a research note on Wednesday, September 3rd. One research analyst has rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $316.65.

Insider Activity at Zscaler

In other news, insider Robert Schlossman sold 7,006 shares of the stock in a transaction that occurred on Thursday, October 2nd. The stock was sold at an average price of $305.57, for a total value of $2,140,823.42. Following the completion of the transaction, the insider owned 76,132 shares of the company’s stock, valued at approximately $23,263,655.24. This represents a 8.43% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Adam Geller sold 11,193 shares of Zscaler stock in a transaction that occurred on Tuesday, September 16th. The shares were sold at an average price of $280.70, for a total value of $3,141,875.10. Following the sale, the insider owned 53,942 shares in the company, valued at $15,141,519.40. This represents a 17.18% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 43,084 shares of company stock worth $12,446,825 over the last ninety days. Corporate insiders own 18.10% of the company’s stock.

Hedge Funds Weigh In On Zscaler

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Kentucky Retirement Systems Insurance Trust Fund boosted its stake in Zscaler by 1.4% in the 3rd quarter. Kentucky Retirement Systems Insurance Trust Fund now owns 2,569 shares of the company’s stock worth $770,000 after purchasing an additional 36 shares during the period. Parallel Advisors LLC increased its holdings in shares of Zscaler by 10.9% in 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 lifted its position in shares of Zscaler by 7.5% in the second quarter. Smartleaf Asset Management LLC now owns 648 shares of the company’s stock worth $204,000 after buying an additional 45 shares in the last quarter. Larson Financial Group LLC boosted its stake in Zscaler by 2.6% during the third quarter. Larson Financial Group LLC now owns 2,040 shares of the company’s stock valued at $611,000 after buying an additional 52 shares during the last quarter. Finally, Crossmark Global Holdings Inc. grew its holdings in Zscaler by 6.1% during the 3rd quarter. Crossmark Global Holdings Inc. now owns 976 shares of the company’s stock valued at $292,000 after buying an additional 56 shares in the last quarter. Hedge funds and other institutional investors own 46.45% of the company’s stock.

About Zscaler

Zscaler, Inc operates as a cloud security company worldwide. The company offers Zscaler Internet Access solution that provides users, workloads, IoT, and OT devices secure access to externally managed applications, including software-as-a-service (SaaS) applications and internet destinations; and Zscaler Private Access solution, which is designed to provide access to managed applications hosted internally in data centers, and private or public clouds.