Quick Overview
- Zscaler’s fiscal Q3 2026 results arrive after Tuesday’s closing bell on May 26
- Consensus forecasts point to $1.01 EPS (20% annual growth) and $835.60M revenue (23% annual increase)
- Implied volatility suggests approximately 13% stock movement following the announcement
- Shares have declined 19% in 2025, lagging the cybersecurity sector’s 8% advance
- Wall Street maintains Strong Buy consensus with $224.78 average target price
Zscaler (ZS) is scheduled to unveil its fiscal third-quarter 2026 financial results following Tuesday’s market close on May 26, as investors scrutinize performance after a challenging year for shares.
Shares have tumbled 19% year-to-date, significantly underperforming the broader cybersecurity industry, which has posted an 8% gain during the same timeframe.
The options market is anticipating approximately 13% volatility in either direction after earnings. This exceeds ZS’s typical 8.25% post-earnings swing over the previous four quarters, suggesting heightened investor uncertainty surrounding the report.
Analyst consensus calls for earnings per share of $1.01, representing a 20% year-over-year improvement. Revenue projections stand at $835.60 million, marking a 23% annual climb.
Zscaler has consistently surpassed both earnings and revenue expectations in each of the past eight quarters, providing a foundation for cautious optimism among shareholders.
Strategic Move: Symmetry Systems Deal Under Spotlight
Zscaler revealed plans last week to acquire Symmetry Systems, a specialist in identity mapping and AI-focused data protection solutions. The transaction is anticipated to finalize soon, though the purchase price remains undisclosed.
Morgan Stanley’s Meta Marshall maintained her Equalweight stance with a $155 target following the announcement. She characterized the acquisition as reinforcing Zscaler’s expansion into AI Security and Data Security, both representing higher-growth segments of the portfolio.
Marshall highlighted that Zscaler aims to exceed $500 million in AI Security ARR by the conclusion of fiscal 2026, with non-seat-based offerings now comprising over 25% of new Annual Contract Value. However, she emphasized that the investment community seeks stronger confirmation that these emerging revenue streams can expand rapidly enough to compensate for deceleration in the legacy SASE platform.
Street Sentiment Ahead of Results
UBS analyst Roger Boyd reaffirmed his Buy recommendation with a $260 target. He observed that investor sentiment surrounding ZS has strengthened in recent months, with April channel feedback showing improvement compared to earlier quarters.
Boyd expressed increasing conviction in Zscaler’s second-half growth outlook, pointing to Remaining Performance Obligations growth exceeding 30% across the last four quarters.
Cantor Fitzgerald’s Jonathan Ruykhaver maintained his Overweight rating alongside a $300 price objective. His channel surveys revealed only 5% of partner organizations reporting below-plan performance.
He continues to favor the long-term expansion opportunity from SASE and Zero Trust market penetration, viewing the ZFlex consumption-based pricing framework as a competitive advantage — especially as over 25% of new ACV now originates from non-seat-based models.
The Street consensus reflects Strong Buy sentiment with 28 Buy recommendations and six Hold ratings issued over the past three months. The mean price target of $224.78 suggests approximately 23% potential upside from current trading levels.
Zscaler’s GF Score registers at 67/100, featuring a Growth Rank of 9/10 but weaker scores for Financial Strength (5/10) and Profitability (3/10).
Corporate insiders have divested $2.4 million in shares over the past three months, with zero insider purchases recorded during that span.
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