Zscaler Reports Revenue Growth but Wider Loss in Q3
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: NASDAQ.COM
- Revenue Growth: Zscaler reported a revenue increase to $850.5 million for Q3 2026, up 25.1% from $678.0 million a year earlier, indicating strong performance amid rising market demand despite profitability challenges.
- Widening Net Loss: The company's net loss expanded to $13.9 million from $4.1 million last year, highlighting increased spending in sales and R&D, which may impact future profitability and investor confidence.
- Rising Expenses: Sales and marketing expenses rose to $371.9 million from $314.6 million, while R&D expenses increased from $169.8 million to $232.3 million, reflecting ongoing investments in market share expansion and technological innovation, though this may lead to short-term financial pressure.
- Stock Price Volatility: Zscaler's stock is currently trading at $150.00, down $34.60 or 18.74% on Nasdaq, indicating investor concerns regarding the company's financial performance, which could affect future funding and market confidence.
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Analyst Views on ZS
Wall Street analysts forecast ZS stock price to rise
30 Analyst Rating
24 Buy
6 Hold
0 Sell
Strong Buy
Current: 130.040
Low
260.00
Averages
325.62
High
390.00
Current: 130.040
Low
260.00
Averages
325.62
High
390.00
About ZS
Zscaler, Inc. is a cloud security company. The Company has developed a platform incorporating core security functionalities needed to enable fast and secure access to cloud resources based on identity, context and an organization's policies. Its Zscaler Zero Trust Exchange is a cloud-native platform that securely connects users, devices, applications and workloads, including artificial intelligence (AI) agents, without relying on hub-and-spoke network architecture and firewall-centric security. It delivers its solutions using a software-as-a-service (SaaS) business model and sells subscriptions to customers to access its cloud platform, together with related support services. Its services include Zscaler Internet Access (ZIA), Zscaler Private Access (ZPA), and Zscaler Digital Experience (ZDX). ZIA provides secure access to externally managed applications, including SaaS applications and internet destinations, regardless of device, location or network.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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