Wedbush Issues Optimistic Estimate for Zscaler Earnings

Zscaler, Inc. (NASDAQ:ZS) – Research analysts at Wedbush raised their Q2 2025 EPS estimates for Zscaler in a report released on Tuesday, December 3rd. Wedbush analyst D. Ives now expects that the company will post earnings per share of ($0.06) for the quarter, up from their previous forecast of ($0.26). Wedbush has a “Outperform” rating and a $220.00 price target on the stock. The consensus estimate for Zscaler’s current full-year earnings is ($0.31) per share. Wedbush also issued estimates for Zscaler’s Q3 2025 earnings at ($0.07) EPS, Q4 2025 earnings at ($0.01) EPS, FY2025 earnings at ($0.12) EPS, Q1 2026 earnings at $0.01 EPS, Q2 2026 earnings at $0.07 EPS, Q3 2026 earnings at $0.14 EPS, Q4 2026 earnings at $0.13 EPS and FY2026 earnings at $0.35 EPS.

Zscaler (NASDAQ:ZS) last issued its earnings results 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 0.80%. The business had revenue of $628.00 million during the quarter, compared to analysts’ expectations of $605.51 million. During the same quarter in the prior year, the business posted ($0.18) EPS. The company’s revenue for the quarter was up 26.4% on a year-over-year basis.

Several other brokerages have also recently issued reports on ZS. BNP Paribas assumed coverage on shares of Zscaler in a research note on Tuesday, October 8th. They issued a “neutral” rating and a $180.00 price objective on the stock. Morgan Stanley reduced their price objective on shares of Zscaler from $215.00 to $205.00 and set an “equal weight” rating for the company in a research report on Tuesday, December 3rd. Guggenheim reiterated a “neutral” rating on shares of Zscaler in a research report on Tuesday, December 3rd. BMO Capital Markets raised their price target on Zscaler from $197.00 to $222.00 and gave the company an “outperform” rating in a report on Tuesday, December 3rd. Finally, UBS Group cut their price objective on Zscaler from $270.00 to $250.00 and set a “buy” rating for the company in a research report on Wednesday, September 4th. Eleven investment analysts have rated the stock with a hold rating and twenty-three have assigned a buy rating to the stock. According to data from MarketBeat.com, Zscaler has an average rating of “Moderate Buy” and an average price target of $224.84.

Zscaler Price Performance

ZS stock opened at $211.99 on Friday. The company has a fifty day moving average price of $193.47 and a 200 day moving average price of $185.71. Zscaler has a 12 month low of $153.45 and a 12 month high of $259.61. The company has a market cap of $32.53 billion, a price-to-earnings ratio of -847.96 and a beta of 0.82.

Insider Activity at Zscaler

In other Zscaler news, CFO Remo Canessa sold 8,455 shares of the firm’s stock in a transaction that occurred on Tuesday, September 17th. The shares were sold at an average price of $171.28, for a total value of $1,448,172.40. Following the transaction, the chief financial officer now directly owns 231,793 shares of the company’s stock, valued at approximately $39,701,505.04. This trade represents a 3.52 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Jagtar Singh Chaudhry sold 2,852 shares of the firm’s stock in a transaction on Tuesday, September 17th. The stock was sold at an average price of $171.28, for a total value of $488,490.56. Following the completion of the transaction, the chief executive officer now owns 361,432 shares in the company, valued at $61,906,072.96. This represents a 0.78 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 30,502 shares of company stock valued at $5,256,651 in the last ninety days. Insiders own 18.10% of the company’s stock.

Institutional Investors Weigh In On Zscaler

Several large investors have recently bought and sold shares of the company. Quest Partners LLC bought a new stake in shares of Zscaler in the second quarter worth about $28,000. Prestige Wealth Management Group LLC bought a new stake in Zscaler during the 3rd quarter worth approximately $31,000. True Wealth Design LLC raised its holdings in Zscaler by 18,500.0% during the 3rd quarter. True Wealth Design LLC now owns 186 shares of the company’s stock worth $32,000 after buying an additional 185 shares during the period. Wilmington Savings Fund Society FSB bought a new position in Zscaler in the third quarter valued at approximately $38,000. Finally, Asset Dedication LLC boosted its holdings in shares of Zscaler by 436.8% in the second quarter. Asset Dedication LLC now owns 204 shares of the company’s stock valued at $39,000 after buying an additional 166 shares during the period. Institutional investors own 46.45% of the company’s stock.

About Zscaler

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.