Zscaler Hits 20-Day Low on Strong Earnings but Weak Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 01 Dec 25
Source: SeekingAlpha
Zscaler Inc. shares fell by 3.08%, hitting a 20-day low, despite reporting strong fiscal first-quarter earnings that exceeded market expectations.
The company reported first-quarter revenue of $788.1 million, a 26% increase year-over-year, and raised its full-year revenue forecast to approximately $3.28 billion. However, investor concerns about future growth prospects led to a sharp decline in stock price.
Analysts expressed mixed reviews, with some lowering their price targets, indicating that despite strong revenue growth, there are worries about potential deceleration in growth, particularly in the current economic climate.
Analyst Views on ZS
Wall Street analysts forecast ZS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ZS is 325.62 USD with a low forecast of 260.00 USD and a high forecast of 390.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
30 Analyst Rating
24 Buy
6 Hold
0 Sell
Strong Buy
Current: 200.630
Low
260.00
Averages
325.62
High
390.00
Current: 200.630
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 platform protects thousands of customers from cyberattacks and data loss by securely connecting users, devices, and applications in any location. Its solution is a purpose-built, multi-tenant, distributed cloud platform that incorporates the security functionality needed to enable users, applications, and devices to safely and efficiently utilize authorized applications and services based on an organization’s business policies. 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. It offers a security platform that combines its platform with automated security operations.
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.
