Zscaler Analysts Slash Their Forecasts After Q2 Results

Benzinga
02/27

Zscaler Inc. (NASDAQ:ZS) on Thursday reported better-than-expected second-quarter financial results but slashed its FY26 sales guidance.

The company reported quarterly earnings of $1.01 per share, which beat the analyst consensus estimate of 90 cents, according to data from Benzinga Pro. Quarterly revenue came in at $815.75 million which beat the analyst consensus estimate of $798.82 million.

"We believe Zscaler is the cybersecurity platform for the AI age — our in-line Zero Trust platform is uniquely architected to secure the unprecedented speed and scale of AI and agentic workflows," said Jay Chaudhry, CEO.

Zscaler raised its fiscal 2026 adjusted EPS from $3.99 to $4.02, versus the $3.81 estimate, and lowered its revenue outlook to a new range of $3.31 billion to $3.32 billion, versus the $3.3 billion estimate.

Zscaler shares fell 13.4% to $144.97 in pre-market trading.

These analysts made changes to their price targets on Zscaler following earnings announcement.

  • Needham analyst Mike Cikos maintained Zscaler with a Buy and lowered the price target from $310 to $180.
  • Piper Sandler analyst Rob Owens maintained the stock with a Neutral and lowered the price target from $260 to $185.
  • Citizens analyst Trevor Walsh maintained Zscaler with a Market Outperform and lowered the price target from $355 to $290.

Considering buying ZS stock? Here’s what analysts think:

Photo via Shutterstock

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