Research Analysts Set Expectations for Zscaler Q2 Earnings

Zscaler, Inc. (NASDAQ:ZS) – Equities research analysts at Capital One Financial reduced their Q2 2025 earnings per share (EPS) estimates for Zscaler in a report issued on Wednesday, January 15th. Capital One Financial analyst C. Murphy now forecasts that the company will post earnings of ($0.07) per share for the quarter, down from their prior forecast of ($0.06). The consensus estimate for Zscaler’s current full-year earnings is ($0.16) per share. Capital One Financial also issued estimates for Zscaler’s Q1 2026 earnings at ($0.01) EPS, Q4 2026 earnings at $0.12 EPS and FY2026 earnings at $0.17 EPS.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings data on Monday, December 2nd. The company reported $0.77 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.63 by $0.14. Zscaler had a negative net margin of 1.58% and a negative return on equity of 0.75%. The business had revenue of $628.00 million for the quarter, compared to the consensus estimate of $605.51 million. During the same period last year, the firm posted ($0.18) earnings per share. The company’s revenue was up 26.4% compared to the same quarter last year.

A number of other brokerages have also recently commented on ZS. JMP Securities reiterated a “market outperform” rating and issued a $240.00 target price (down from $270.00) on shares of Zscaler in a research report on Tuesday, December 3rd. JPMorgan Chase & Co. boosted their target price on Zscaler from $220.00 to $240.00 and gave the stock an “overweight” rating in a report on Friday, November 29th. BNP Paribas assumed coverage on Zscaler in a research report on Tuesday, October 8th. They set a “neutral” rating and a $180.00 price objective on the stock. Barclays boosted their price objective on Zscaler from $200.00 to $220.00 and gave the stock an “overweight” rating in a research note on Thursday, November 21st. Finally, Stifel Nicolaus raised their target price on Zscaler from $220.00 to $235.00 and gave the stock a “buy” rating in a research note on Thursday, November 14th. Eleven equities research analysts have rated the stock with a hold rating and twenty-three have given a buy rating to the company. According to data from MarketBeat, Zscaler presently has an average rating of “Moderate Buy” and a consensus target price of $224.84.

Zscaler Price Performance

Shares of NASDAQ:ZS opened at $187.55 on Friday. Zscaler has a 1 year low of $153.45 and a 1 year high of $259.61. The firm has a market capitalization of $28.78 billion, a PE ratio of -750.20 and a beta of 0.87. The business’s 50 day moving average price is $196.61 and its 200-day moving average price is $188.20.

Insider Activity

In other Zscaler news, CEO Jagtar Singh Chaudhry sold 2,863 shares of the business’s stock in a transaction that occurred on Tuesday, December 17th. The shares were sold at an average price of $200.32, for a total transaction of $573,516.16. Following the completion of the transaction, the chief executive officer now owns 358,569 shares in the company, valued at $71,828,542.08. The trade was a 0.79 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Remo Canessa sold 3,703 shares of the firm’s stock in a transaction on Tuesday, December 17th. The shares were sold at an average price of $200.32, for a total transaction of $741,784.96. Following the completion of the sale, the chief financial officer now owns 220,635 shares in the company, valued at $44,197,603.20. The trade was a 1.65 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 10,248 shares of company stock worth $2,052,879. Corporate insiders own 18.10% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the business. Quest Partners LLC acquired a new position in shares of Zscaler in the 2nd quarter valued at $28,000. Prestige Wealth Management Group LLC acquired a new position in Zscaler in the third quarter valued at $31,000. True Wealth Design LLC grew its holdings in shares of Zscaler by 18,500.0% during the third quarter. True Wealth Design LLC now owns 186 shares of the company’s stock worth $32,000 after purchasing an additional 185 shares during the last quarter. Versant Capital Management Inc grew its holdings in shares of Zscaler by 136.8% during the fourth quarter. Versant Capital Management Inc now owns 180 shares of the company’s stock worth $32,000 after purchasing an additional 104 shares during the last quarter. Finally, Modus Advisors LLC acquired a new stake in shares of Zscaler during the fourth quarter worth about $36,000. 46.45% of the stock is owned by institutional investors and hedge funds.

Zscaler Company Profile

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.