Zscaler (NASDAQ:ZS) Posts Quarterly Earnings Results, Beats Estimates By $0.11 EPS

by · The Cerbat Gem

Zscaler (NASDAQ:ZS – Get Free Report) released its earnings results on Tuesday. The company reported $0.96 EPS for the quarter, beating analysts’ consensus estimates of $0.85 by $0.11, FiscalAI reports. Zscaler had a negative return on equity of 0.47% and a negative net margin of 1.55%.The company had revenue of $788.11 million during the quarter, compared to analysts’ expectations of $773.86 million. During the same quarter last year, the business posted $0.77 EPS. The firm’s revenue for the quarter was up 25.5% compared to the same quarter last year. Zscaler updated its FY 2026 guidance to 3.780-3.820 EPS and its Q2 2026 guidance to 0.890-0.900 EPS.

Zscaler Stock Up 3.3%

NASDAQ:ZS opened at $289.73 on Wednesday. The company has a debt-to-equity ratio of 0.95, a quick ratio of 2.01 and a current ratio of 2.01. The firm has a market cap of $46.20 billion, a P/E ratio of -1,073.07 and a beta of 1.06. Zscaler has a fifty-two week low of $164.78 and a fifty-two week high of $336.99. The firm has a 50-day simple moving average of $305.82 and a two-hundred day simple moving average of $291.48.

Insider Activity

In related news, insider Robert Schlossman sold 3,200 shares of the company’s stock in a transaction that occurred on Friday, October 24th. The stock was sold at an average price of $325.00, for a total value of $1,040,000.00. Following the transaction, the insider directly owned 80,086 shares of the company’s stock, valued at approximately $26,027,950. This represents a 3.84% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, EVP Raj Judge sold 4,524 shares of the stock in a transaction on Tuesday, September 16th. The shares were sold at an average price of $280.70, for a total value of $1,269,886.80. Following the sale, the executive vice president owned 73,832 shares in the company, valued at approximately $20,724,642.40. This represents a 5.77% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 43,084 shares of company stock worth $12,446,825. Corporate insiders own 18.10% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of ZS. Binnacle Investments Inc purchased a new stake in shares of Zscaler during the third quarter valued at $25,000. Front Row Advisors LLC lifted its stake in Zscaler by 141.3% during the 3rd quarter. Front Row Advisors LLC now owns 386 shares of the company’s stock valued at $116,000 after acquiring an additional 226 shares during the period. Parallel Advisors LLC boosted its holdings in shares of Zscaler by 10.9% during the 3rd quarter. Parallel Advisors LLC now owns 397 shares of the company’s stock valued at $119,000 after acquiring an additional 39 shares during the last quarter. State of Wyoming bought a new stake in shares of Zscaler in the second quarter worth approximately $129,000. Finally, Smartleaf Asset Management LLC raised its holdings in shares of Zscaler by 7.5% during the second quarter. Smartleaf Asset Management LLC now owns 648 shares of the company’s stock valued at $204,000 after purchasing an additional 45 shares during the last quarter. 46.45% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

A number of research firms have issued reports on ZS. Robert W. Baird increased their price objective on Zscaler from $330.00 to $345.00 and gave the stock an “outperform” rating in a report on Wednesday, September 3rd. Evercore ISI upped their target price on shares of Zscaler from $290.00 to $320.00 and gave the stock an “outperform” rating in a research report on Wednesday, September 3rd. Rosenblatt Securities increased their price target on shares of Zscaler from $330.00 to $365.00 and gave the stock a “buy” rating in a research note on Tuesday, November 18th. Zacks Research raised shares of Zscaler from a “strong sell” rating to a “hold” rating in a research note on Thursday, October 2nd. Finally, Needham & Company LLC restated a “buy” rating and issued a $350.00 price objective on shares of Zscaler in a report on Wednesday, September 3rd. One analyst has rated the stock with a Strong Buy rating, thirty-one have given a Buy rating, eight have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $317.00.

Read Our Latest Report on Zscaler

About Zscaler

(Get Free Report)

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.

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