DailyIQ
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Sector:TechnologyAll sectors
Last updated 3 minutes ago

ZS·Zscaler, Inc.

$.
-. (-.%)
After Hours
High
$149.39
Open
$147.12
Market Cap
23.24B
52W High
$336.99
Low
$138.60
P. Close
$147.11
P/E
-
52W Low
$114.62
Fwd P/E
30.29
DailyIQ Est.
$203.06
Technical Score (1D)
50
NEUTRAL
News Sentiment
70
BULLISH
Coforge’s launch of SecureEdge2Cloud on ZS’s platform expands the Project AI‑Guardian partner ecosystem, signaling a push to embed AI‑driven controls into Zero Trust Exchange and potentially accelerating adoption among cloud‑centric workloads, so watch how the partnership propels partner‑pipeline revenue. Despite a recent decline, ZS’s latest earnings forecast shows a 22 % YoY jump in EPS and revenue, with full‑year guidance pointing to 26 % EPS and 24 % revenue growth, indicating that the market may be under‑reacting to robust upside potential, so watch the upcoming earnings release for confirmation of these estimates and any revisions to analyst expectations. Investor search volume for ZS has spiked, suggesting heightened interest ahead of possible catalysts such as earnings, product updates, or regulatory developments, so monitor the next earnings call and any changes in analyst coverage for clues on the company’s trajectory. The multi‑year partnership with the Aston Martin Aramco Formula One Team places ZS’s Zero‑Trust Exchange at the core of high‑volume, real‑time data flows for race strategy, offering a high‑visibility test case that could enhance brand exposure and commercial traction beyond traditional corporate IT, so watch the partnership’s rollout milestones and any revenue impact reported in subsequent earnings. A macro lift from lower oil prices and the de‑escalation between the U.S. and Iran has eased broader market risk, benefiting growth software like ZS by reducing inflation expectations and dampening fears of AI disruption, so watch for any further macro developments that could influence growth‑software valuations. Q1 revenue beat analyst consensus by 1.6 %, and the zero‑trust platform continues to drive adoption as enterprises migrate workloads to the cloud, underscoring sector strength, so watch for any shift in growth expectations in the next quarter’s guidance. Analysts view the FY27 reset as a temporary hiccup amid sustained demand for cybersecurity solutions, keeping a Strong Buy rating despite volatility, so watch for any changes in FY27 guidance that could alter the valuation narrative. ZS’s shift to a flexible bookings model that ties revenue to consumption has helped offset a decline in share price, suggesting that the market may be under‑reacting to upside potential, so watch the mix of subscription versus consumption revenue and any adjustments in guidance that could signal a change in cash‑flow dynamics.
Earnings Summary
Zscaler, Inc. is a cloud‑security provider that delivers Zero Trust and AI‑centric protection across a broad range of industries, positioning itself as a key player in the SASE and SaaS security market. The company’s portfolio spans internet access, private access, zero‑trust firewalls, sandboxing, and advanced AI security solutions, serving sectors from financial services to public sector. In the most recent quarter (Q4 2024), Zscaler reported earnings per share of $0.78 versus an estimate of $0.69, and revenue of $647.9 million, marking a solid beat on earnings and a healthy revenue increase from prior periods. The following quarter reported (Q2 2026) EPS of $1.01 against an estimate of $0.92, with revenue of $815.75 million slightly below the $822.77 million forecast, yet still reflecting a strong year‑over‑year growth in both earnings and top line. Historically, Zscaler has maintained a consistent upward trajectory, with each quarter’s EPS beating consensus and revenue expanding year‑over‑year, underscoring a pattern of robust earnings momentum despite occasional revenue guidance misses. Recent developments include the launch of Project AI‑Guardian, which expands interoperability with major cloud and AI partners such as AWS, Google Cloud, and OpenAI, potentially accelerating subscription and professional‑services revenue; a Baird upgrade to Buy citing a $230 target and a strong Q3 2026 outlook; and a partnership with Gigamon that integrates Zscaler Private Access with application metadata intelligence, likely enhancing demand for its zero‑trust suite. Investors should watch for the next earnings release to gauge the impact of these AI and partnership initiatives on revenue guidance, monitor the pace of partner integration rollouts, and track any updates on regulatory investigations that could influence governance and compliance sentiment. These factors will be key to assessing whether Zscaler can sustain its growth trajectory amid evolving market dynamics and regulatory scrutiny.

EPS

EstBeatMiss
$0.63$0.76$0.89$1.02$1.15Q4'24Q2'26Q3'26
QtrEstActual+/−
Q3'26$1.09 - -
Q2'26$0.92$1.01+9.4%
Q4'24$0.69$0.78+12.7%

Revenue

EstBeatMiss
$613M$688M$763M$837M$912MQ4'24Q2'26Q3'26
QtrEstActual+/−
Q3'26$878M - -
Q2'26$823M$816M-0.9%
Q4'24 - $648M -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

ZS Stock Snapshot

ZS is currently trading at $146.00, giving Zscaler, Inc. a market cap of 23.24B. Today's range spans $138.60–$149.39, with shares opening at $147.12 and moving down $1.11 (0.8%) from the prior close. DailyIQ's technical score sits at 50/100 (HOLD) with a news sentiment reading of 70/100.

Over the past year ZS has traded between $114.62 and $336.99 - the current price is +27.4% off the 52-week low and -56.7% from the high. 59 analysts cover the stock with a Buy consensus and a mean 12-month target of $192.58 (range $145.00–$250.00), implying upside of +31.9%.

Systematic models flag ZS as a hold in the current environment - large-cap, Technology, 23.24B market cap, 50/100 (HOLD), sentiment bullish at 70/100. Price: $146.00 (near 52-week lows). Quant strategies at this size tier typically shift allocation toward higher-momentum names during neutral phases, but maintain a base position given the structural liquidity that prevents disorderly exits. Annual range: $114.62–$336.99.

The 52-week range of $114.62–$336.99 for ZS provides the structural reference that options traders, systematic funds, and discretionary managers all anchor to — and at $146.00 (near 52-week lows), the stock sits in a zone where the next 5–10% move will likely define which crowd was right. A HOLD signal at 50/100 and bullish news backdrop (70/100) don't break the tie yet, but they narrow the probability distribution toward the upside.