Zscaler Inc. (NASDAQ:ZS) is expected to deliver a strong fiscal third quarter when it reports results on May 26, with Jefferies analysts saying the cybersecurity company is well positioned to beat consensus annual recurring revenue growth expectations. Jefferies is modeling F3Q ARR at $3.51 billion, representing 24.6% year-over-year growth.
FTNT looks like the smarter buy as AI and SASE demand boost billings, margins and estimate revisions, while ZS shares lag.
ZS' Zero Trust Everywhere drives bigger deals as customers reach 550 at the end of Q2'26 from 130 in the year-ago quarter.
Zscaler (ZS) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock doesn't suggest further strength down the road.
Zscaler is initiated with a "Buy" rating ahead of its Q3 earnings, citing attractive valuation and bullish technical momentum. ZS delivered strong Q2 results, beating revenue and EPS expectations, with 26% revenue growth and robust free cash flow margins at 21%. Guidance was raised for FY 2026, supported by accelerating AI-driven demand and significant customer expansions, with consensus upgrades outpacing downgrades 44 to zero.
Zacks.com users have recently been watching Zscaler (ZS) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Zscaler offers a compelling risk-reward profile after a 34% YTD decline, with fundamentals remaining robust and valuation now attractive. ZS is positioned to benefit from secular zero-trust security adoption, boasting 23%+ revenue growth, ~32% FCF margins, and a $1.65bn net cash buffer. I see 49% upside over 2.2 years driven by market share gains, margin expansion, and potential multiple re-rating as AI becomes an enabler, not a threat.
ZS' Z-Flex bookings hit $290M in Q2 FY26, helping land longer contracts and lift revenue visibility as adoption accelerates.
In the closing of the recent trading day, Zscaler (ZS) stood at $148.87, denoting a -2.14% move from the preceding trading day.
ZS stock rises 24% in a month, but is still 55% below its 52-week high. AI Security momentum and a discounted valuation support holding.
Zscaler (ZS) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.