Zscaler forecast fourth-quarter revenue below estimates on Tuesday, signaling intensifying competition in the cybersecurity market as enterprises scrutinize spending on cloud security products, sending shares down 15% in extended trading.
Zscaler reports after the close. I'm leaning long the stock, which appears to be in the midst of a bearish-to-bullish reversal, but not long premium (the options).
Clint Sorenson breaks down the state of the cybersecurity sector ahead of Zscaler's (ZS) earnings after Tuesday's closing bell. He explains why cybersecurity remains a long-term secular growth story, how AI is driving demand, and why the broader sector could be heading toward all-time highs.
ZS' Q3 results are likely to reflect benefits from strong AI security demand, Zero Trust growth and momentum in Z-Flex adoption.
In the latest trading session, Zscaler (ZS) closed at $170.71, marking a -2.15% move from the previous day.
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?