Capital One Financial Expects Lower Earnings for Zscaler

Zscaler, Inc. (NASDAQ:ZS - Free Report) - Analysts at Capital One Financial reduced their Q2 2025 EPS estimates for Zscaler in a research note issued to investors on Wednesday, January 15th. Capital One Financial analyst C. Murphy now anticipates that the company will post earnings of ($0.07) per share 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 equities analysts have also weighed in on the company. Needham & Company LLC reissued a "buy" rating and set a $240.00 price objective on shares of Zscaler in a research note on Friday, January 10th. Stifel Nicolaus lifted their price target on Zscaler from $220.00 to $235.00 and gave the stock a "buy" rating in a report on Thursday, November 14th. Oppenheimer upped their price objective on shares of Zscaler from $230.00 to $250.00 and gave the company an "outperform" rating in a report on Tuesday, December 3rd. Jefferies Financial Group lifted their target price on shares of Zscaler from $225.00 to $245.00 and gave the stock a "buy" rating in a research note on Tuesday, November 26th. Finally, Guggenheim reiterated a "neutral" rating on shares of Zscaler in a report on Tuesday, December 3rd. Eleven investment analysts have rated the stock with a hold rating and twenty-three have assigned a buy rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $224.84.

Zscaler Stock Performance

Shares of ZS stock traded up $0.03 during trading hours on Friday, reaching $187.58. The company had a trading volume of 1,303,200 shares, compared to its average volume of 1,510,545. Zscaler has a 12-month low of $153.45 and a 12-month high of $259.61. The company has a market capitalization of $28.78 billion, a price-to-earnings ratio of -750.32 and a beta of 0.87. The stock has a fifty day moving average of $196.61 and a 200-day moving average of $188.20.

Zscaler (NASDAQ:ZS - Get Free Report) last announced its quarterly earnings data 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. The company had revenue of $628.00 million during the quarter, compared to analysts' expectations of $605.51 million. Zscaler had a negative net margin of 1.58% and a negative return on equity of 0.75%. Zscaler's revenue was up 26.4% compared to the same quarter last year. During the same quarter in the prior year, the company earned ($0.18) EPS.

Insider Buying and Selling

In related news, insider Syam Nair sold 3,682 shares of the company's stock in a transaction that occurred on Tuesday, December 17th. The stock was sold at an average price of $200.32, for a total value of $737,578.24. Following the completion of the transaction, the insider now directly owns 142,866 shares of the company's stock, valued at $28,618,917.12. This represents a 2.51 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Remo Canessa sold 3,703 shares of the stock in a transaction on Tuesday, December 17th. The shares were sold at an average price of $200.32, for a total transaction of $741,784.96. Following the completion of the transaction, the chief financial officer now directly owns 220,635 shares in the company, valued at $44,197,603.20. This trade represents a 1.65 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 10,248 shares of company stock valued at $2,052,879 in the last three months. 18.10% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Avior Wealth Management LLC lifted its position in Zscaler by 50.7% during the 4th quarter. Avior Wealth Management LLC now owns 214 shares of the company's stock worth $39,000 after acquiring an additional 72 shares during the period. MBM Wealth Consultants LLC acquired a new stake in shares of Zscaler during the fourth quarter worth $371,000. Red Spruce Capital LLC grew its position in Zscaler by 1.4% in the 4th quarter. Red Spruce Capital LLC now owns 16,015 shares of the company's stock valued at $2,889,000 after buying an additional 221 shares during the last quarter. Perpetual Ltd purchased a new position in Zscaler in the 4th quarter valued at $814,000. Finally, Lmcg Investments LLC increased its stake in Zscaler by 12.2% in the 4th quarter. Lmcg Investments LLC now owns 14,845 shares of the company's stock valued at $2,678,000 after buying an additional 1,616 shares during the period. 46.45% of the stock is owned by hedge funds and other institutional investors.

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.