Zscaler Q4 tops estimates; strong fiscal 2027 guidance lifts forecasts
Zscaler reported fourth-quarter revenue of $898.16 million versus $877.36 million consensus, and adjusted earnings of $1.19 per share versus $1.08. It guided first-quarter revenue $935 million to $939 million and adjusted earnings $1.15 to $1.16 per share.
Zscaler Inc (NASDAQ: ZS ) reported better-than-expected financial results for the fourth quarter of fiscal 2026 and issued strong guidance for fiscal 2027 on Thursday.
Zscaler reported fourth-quarter revenue of $898.16 million, beating the consensus estimate of $877.36 million.
The company posted fourth-quarter adjusted earnings of $1.19 per share, beating analyst estimates of $1.08 per share, according to Pro. "AI represents one of the most significant opportunities in Zscaler’s history.
By connecting users, workloads, branches, and now agents directly to the applications they need without placing them on the network, we are uniquely equipped to help companies both combat the threats created by agentic AI and securely deploy AI agents and models," said Jay Chaudhry, chairman and CEO of Zscaler.
Zscaler sees first-quarter revenue in the range of $935 million to $939 million versus estimates of $927.02 million.
The company anticipates first-quarter adjusted earnings of $1.15 to $1.16 per share versus estimates of $1.08 per share.
Zscaler guided for fiscal 2027 revenue of approximately $3.91 billion to $3.94 billion and full-year adjusted earnings of $4.86 to $4.90 per share.
Analysts are currently forecasting full-year revenue of $3.90 billion and adjusted earnings of $4.60 per share.
Zscaler shares fell 4.1% to trade at $170.56 on Friday.
These analysts made changes to their price targets on Zscaler following earnings announcement.
Needham analyst Mike Cikos maintained the stock with a Buy and raised the price target from $180 to $215.
Stephens & Co. analyst Todd Weller maintained the stock with an Overweight rating and raised the price target from $200 to $225.
Barclays analyst Peter Weed maintained the stock with an Overweight rating and raised the price target from $192 to $200.
Scotiabank analyst Patrick Colville maintained the stock with a Sector Outperform and boosted the price target from $175 to $200.
Considering buying ZS stock? Here’s what analysts think: Photo via Shutterstock