Zscaler Raises FY2026 Revenue Guidance Amid Price Target Cuts
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 27 2026
0mins
Should l Buy ZS?
Source: stocktwits
- Guidance Increase: Zscaler raised its fiscal year 2026 revenue guidance to $3.309 billion to $3.322 billion, up from the previous guidance of $3.282 billion to $3.301 billion, indicating the company's confidence in future growth despite market challenges.
- Q2 Performance Beat: The company reported a 26% year-over-year revenue increase to $815.8 million in Q2, slightly exceeding Wall Street's estimate of $815.7 million, with earnings per share of $1.01, surpassing the $0.90 estimate, showcasing its competitive strength in the market.
- Significant Stock Drop: Despite the strong earnings, Zscaler's shares plummeted 15% on Friday, hitting a 30-month low, reflecting investor disappointment over its organic annual recurring revenue being “a bit lighter” than expected, leading to a bearish sentiment.
- Analyst Rating Adjustments: Both JPMorgan and Mizuho lowered their price targets for Zscaler, with JPMorgan reducing it from $267 to $250 and Mizuho from $265 to $250, while maintaining an ‘Overweight’ rating, indicating a cautious outlook on the company's future performance.
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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: 142.090
Low
260.00
Averages
325.62
High
390.00
Current: 142.090
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.
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- Technological Breakthrough: Claude Mythos Preview can detect critical bugs that have been difficult to identify, including a 27-year-old vulnerability in OpenBSD, showcasing its strong coding and reasoning capabilities, which could revolutionize the cybersecurity landscape.
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