Capital One Financial Forecasts Weaker Earnings for Zscaler

Zscaler, Inc. (NASDAQ:ZS) – Equities research analysts at Capital One Financial lowered their Q2 2025 EPS estimates for shares of Zscaler in a report released on Wednesday, January 15th. Capital One Financial analyst C. Murphy now expects that the company will post earnings per share of ($0.07) for the quarter, down from their prior forecast of ($0.06). The consensus estimate for Zscaler’s current full-year earnings is ($0.16) per share. Capital One Financial also issued estimates for Zscaler’s Q1 2026 earnings at ($0.01) EPS, Q4 2026 earnings at $0.12 EPS and FY2026 earnings at $0.17 EPS.

A number of other analysts have also commented on the company. KeyCorp boosted their price target on Zscaler from $245.00 to $250.00 and gave the company an “overweight” rating in a report on Tuesday, December 3rd. Stifel Nicolaus boosted their target price on Zscaler from $220.00 to $235.00 and gave the company a “buy” rating in a research note on Thursday, November 14th. BMO Capital Markets raised their price target on shares of Zscaler from $197.00 to $222.00 and gave the stock an “outperform” rating in a research note on Tuesday, December 3rd. Needham & Company LLC reiterated a “buy” rating and issued a $240.00 price objective on shares of Zscaler in a report on Friday, January 10th. Finally, Wells Fargo & Company increased their target price on shares of Zscaler from $180.00 to $190.00 and gave the stock an “equal weight” rating in a report on Wednesday, December 4th. Eleven analysts have rated the stock with a hold rating and twenty-three have issued a buy rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $224.84.

Zscaler Stock Performance

Shares of ZS stock opened at $187.58 on Friday. The company has a market capitalization of $28.78 billion, a P/E ratio of -750.32 and a beta of 0.87. Zscaler has a 52 week low of $153.45 and a 52 week high of $259.61. The company’s 50 day moving average price is $196.44 and its two-hundred day moving average price is $188.12.

Zscaler (NASDAQ:ZS) last released its quarterly earnings results on Monday, December 2nd. The company reported $0.77 EPS for the quarter, topping analysts’ consensus estimates of $0.63 by $0.14. Zscaler had a negative return on equity of 0.75% and a negative net margin of 1.58%. The company had revenue of $628.00 million for the quarter, compared to analyst estimates of $605.51 million. During the same quarter last year, the firm posted ($0.18) earnings per share. Zscaler’s revenue was up 26.4% compared to the same quarter last year.

Insider Activity at Zscaler

In other Zscaler news, CEO Jagtar Singh Chaudhry sold 2,863 shares of the company’s stock in a transaction on Tuesday, December 17th. The stock was sold at an average price of $200.32, for a total value of $573,516.16. Following the transaction, the chief executive officer now directly owns 358,569 shares of the company’s stock, valued at $71,828,542.08. This represents a 0.79 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CFO Remo Canessa sold 3,703 shares of Zscaler stock in a transaction on Tuesday, December 17th. The stock was sold at an average price of $200.32, for a total value of $741,784.96. Following the sale, the chief financial officer now directly owns 220,635 shares of the company’s stock, valued at $44,197,603.20. This represents a 1.65 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 10,248 shares of company stock worth $2,052,879. Insiders own 18.10% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Quest Partners LLC acquired a new stake in shares of Zscaler during the 2nd quarter worth $28,000. Prestige Wealth Management Group LLC bought a new stake in Zscaler during the third quarter worth about $31,000. True Wealth Design LLC grew its stake in Zscaler by 18,500.0% during the third quarter. True Wealth Design LLC now owns 186 shares of the company’s stock worth $32,000 after buying an additional 185 shares in the last quarter. Versant Capital Management Inc increased its holdings in Zscaler by 136.8% in the 4th quarter. Versant Capital Management Inc now owns 180 shares of the company’s stock valued at $32,000 after buying an additional 104 shares during the period. Finally, Modus Advisors LLC acquired a new position in shares of Zscaler in the 4th quarter valued at approximately $36,000. Institutional investors and hedge funds 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.