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 reported better-than-expected results for the fourth quarter of fiscal 2026 and gave strong guidance for fiscal 2027 on Thursday. Fourth-quarter revenue was $898.16 million, above the $877.36 million consensus estimate, and adjusted earnings came in at $1.19 per share versus $1.08 expected, according to Pro. For the first quarter, the company sees revenue of $935 million to $939 million, compared with estimates of $927.02 million, and adjusted earnings of $1.15 to $1.16 per share versus estimates of $1.08. 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. Following the earnings announcement, analysts revised their price targets on Zscaler. Needham analyst Mike Cikos kept a Buy rating and lifted the target to $215 from $180.
Stephens & Co. analyst Todd Weller kept an Overweight rating and increased the target to $225 from $200. Barclays analyst Peter Weed kept an Overweight rating and raised the target to $200 from $192. Scotiabank analyst Patrick Colville kept a Sector Outperform rating and boosted the target to $200 from $175.