Zscaler Raises FY2026 Revenue Guidance Amid Price Target Cuts
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 27 2026
0mins
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: 171.010
Low
260.00
Averages
325.62
High
390.00
Current: 171.010
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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- Optimistic Outlook: The company’s EPS guidance for the next quarter exceeds analyst expectations, and the full-year EPS guidance is also positive, demonstrating management's confidence in future growth, which may attract more investor interest.
- Stable Market Expectations: This quarter, the market anticipates Zscaler's revenue to grow by 23.2% year-on-year, aligning with last year's 22.6% increase, and analysts' sustained optimism is reflected in the reaffirmation of estimates over the past 30 days.
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- Technology Enhancement: Symmetry Systems specializes in mapping how different identities, such as employees or AI agents, connect to enterprise applications and data, which will strengthen Zscaler's security platform by improving governance over AI interactions with sensitive information, thereby enhancing customer trust.
- Analyst Optimism: Several analysts raised their price targets for Zscaler, with KeyBanc increasing its target from $160 to $190, reflecting strong confidence in Zscaler's channel checks and indicating optimistic market expectations for its future growth.
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See More
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- Complete Exit: On May 14, 2026, ShawSpring Partners disclosed in an SEC filing that it sold its entire position of 253,959 shares in monday.com, with an estimated transaction value of $24.37 million, indicating a pessimistic outlook on the company's future performance.
- Significant Market Value Decline: The sale resulted in a $37.47 million decrease in monday.com's quarter-end position value, reflecting a 73% drop in stock price over the past year, significantly underperforming the S&P 500's 28% gain, highlighting market concerns about its prospects.
- Strong Performance Growth: Despite the steep decline in stock price, monday.com reported a 24% year-over-year revenue increase to $351.3 million in Q1, with GAAP operating income doubling to $19.8 million, suggesting that the company's fundamentals remain robust and may attract value investors.
- Aggressive Buyback Plan: The company authorized a stock repurchase of approximately $553 million during the quarter, demonstrating management's confidence in future growth, as it continues to enhance profitability and market share despite intense competition.
See More
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