Wedbush Issues Optimistic Forecast for Zscaler Earnings

Zscaler, Inc. (NASDAQ:ZS - Free Report) - Stock analysts at Wedbush increased their Q2 2025 earnings estimates for Zscaler in a research note issued on Tuesday, December 3rd. Wedbush analyst D. Ives now forecasts that the company will earn ($0.06) per share for the quarter, up from their previous estimate of ($0.26). Wedbush currently 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.

A number of other equities analysts also recently issued reports on ZS. Cantor Fitzgerald raised shares of Zscaler to a "hold" rating in a report on Monday, November 18th. Royal Bank of Canada restated an "outperform" rating and set a $230.00 price target on shares of Zscaler in a report on Tuesday. Loop Capital decreased their price objective on shares of Zscaler from $200.00 to $195.00 and set a "hold" rating for the company in a research note on Tuesday. Jefferies Financial Group boosted their target price on Zscaler from $225.00 to $245.00 and gave the stock a "buy" rating in a research note on Tuesday, November 26th. Finally, Morgan Stanley decreased their price target on Zscaler from $215.00 to $205.00 and set an "equal weight" rating for the company in a research report on Tuesday. Eleven research analysts have rated the stock with a hold rating and twenty-three have issued a buy rating to the stock. Based on data from MarketBeat.com, Zscaler has a consensus rating of "Moderate Buy" and an average target price of $224.84.

Zscaler Stock Up 3.1 %

ZS traded up $6.38 during trading on Friday, hitting $211.99. 2,457,077 shares of the stock traded hands, compared to its average volume of 2,101,864. Zscaler has a twelve month low of $153.45 and a twelve month high of $259.61. The business has a 50 day moving average price of $193.47 and a 200 day moving average price of $185.65.

Zscaler (NASDAQ:ZS - Get Free Report) last posted its quarterly earnings results on Monday, December 2nd. The company reported $0.77 EPS for the quarter, beating analysts' consensus estimates of $0.63 by $0.14. The business had revenue of $628.00 million during the quarter, compared to the consensus estimate of $605.51 million. Zscaler had a negative return on equity of 0.80% and a negative net margin of 1.58%. Zscaler's revenue for the quarter was up 26.4% compared to the same quarter last year. During the same quarter in the previous year, the firm earned ($0.18) earnings per share.

Institutional Trading of Zscaler

Several large investors have recently modified their holdings of ZS. Quest Partners LLC purchased a new position in shares of Zscaler during the second quarter valued at about $28,000. Prestige Wealth Management Group LLC bought a new stake in Zscaler during the 3rd quarter valued at approximately $31,000. True Wealth Design LLC grew its holdings in shares of 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 acquiring an additional 185 shares during the period. Asset Dedication LLC raised its position in shares of Zscaler by 436.8% in the 2nd quarter. Asset Dedication LLC now owns 204 shares of the company's stock worth $39,000 after acquiring an additional 166 shares in the last quarter. Finally, Wilmington Savings Fund Society FSB purchased a new position in shares of Zscaler in the 3rd quarter valued at approximately $38,000. 46.45% of the stock is owned by institutional investors.

Insider Activity at Zscaler

In other Zscaler news, CEO Jagtar Singh Chaudhry sold 2,852 shares of the company's stock in a transaction dated Tuesday, September 17th. The shares were sold at an average price of $171.28, for a total transaction of $488,490.56. Following the completion of the sale, the chief executive officer now directly 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 transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CFO Remo Canessa sold 8,455 shares of the business's stock in a transaction dated 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 completion of the sale, 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 position. The disclosure for this sale can be found here. In the last three months, insiders have sold 30,502 shares of company stock valued at $5,256,651. Corporate insiders own 18.10% 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.