Zscaler Inc. (NASDAQ:ZS) shares are in the spotlight, with earnings on deck today, key growth metrics in focus and recent analyst activity all drawing attention.
- Zscaler stock is moving in positive territory. Why is ZS stock trading higher?
Earnings Preview & History
Zscaler is scheduled to report fourth-quarter fiscal 2026 earnings today after market close. Analysts estimate EPS of $1.08 along with revenue of $877.36 million. For the prior quarter, Zscaler reported EPS of $1.08, beating the consensus estimate of $1.01. The company also posted revenue of $850.48 million, beating the consensus estimate of $835.38 million.
What to Watch: FY27 Guidance Amid ARR Growth and Margin Signals
Investors will be closely tracking Zscaler’s first formal fiscal 2027 guidance, since it was the company’s prior outlook — not last quarter’s beat — that triggered a 31.52% single-day plunge in May. Management previously flagged fiscal 2027 revenue growth of only about 16% and ARR growth of roughly 17%, well below the mid-20% range investors had grown accustomed to, making it critical whether the new framework confirms or improves on those figures.
Annual recurring revenue trends will also be in focus, with ARR growing 25% last quarter (21% excluding the Red Canary acquisition) to a non-GAAP operating margin record of 23%, alongside continued momentum in Zero Trust Everywhere customer adoption, which surpassed 700 customers last quarter, up from 210 a year earlier. Commentary on rising capital expenditures tied to AI infrastructure demand, guided toward the high-single-digit percentage of revenue, should offer additional signals on margin trajectory heading into fiscal 2027.
Analyst Consensus & Recent Actions
The stock carries a Buy rating with an average price forecast of $197.78. Recent analyst moves include:
- JP Morgan: Overweight (Raises Target to $215.00) (Aug. 26)
- Barclays: Overweight (Raises Target to $192.00) (Aug. 25)
- Guggenheim: Buy (Maintains Target to $214.00) (Aug. 24)
Zscaler Shares Edge Higher
ZS Price Action: At the time of publication, Zscaler shares are trading 3.54% higher at $178.85, according to data from Benzinga Pro.
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