ZS
The headline is noisy, but the earnings were real
MarketBeat wrapped a lot of news into one Zscaler story, but the part investors should actually care about is the fresh earnings print. Zscaler posted EPS of $1.01, topping the $0.89 estimate, while revenue rose 25.9% year over year to $815.75 million. Not exactly a company in the witness protection program.
The good news: business is still growing like it means it
The company also laid out guidance for Q3 and the full 2026 fiscal year, which usually matters more than the backward-looking scorecard. For software names like Zscaler, investors are basically asking one question: is the growth engine still humming, or is it starting to cough? This quarter says the engine is still running pretty well.
The bad news: Wall Street loves a moving target
Even with the beat, analysts have been trimming price targets all over the place. Needham, Berenberg, Piper Sandler, Citi, and Oppenheimer all adjusted targets lower in recent weeks, which is Wall Street’s version of saying, “We like you, but maybe not at that price.” The broader consensus still sits at Moderate Buy, but the mood is clearly more cautious than celebratory.
The other stuff: fund selling and insider sales
The article also notes Massachusetts Financial Services cut its Zscaler stake by 53.2% in Q4 and that insiders sold about $1.89 million last quarter. That’s worth watching, but it’s not as fresh as the earnings print. In other words: the quarter was the main course, and the ownership/analyst chatter is the side salad.
Big picture: Zscaler still looks like a growth story with momentum, but investors are being asked to pay close attention to valuation, guidance, and whether all that optimism has already been baked into the stock.