Zscaler, Inc. (ZS)

NASDAQInformation TechnologySoftware - InfrastructureSnapshot 2026-10-23

$255.15+7.31%

Close 2026-10-23 · 1-day change

Investment OutlookAs of Oct 24, 2026

What could strengthen or challenge Zscaler, Inc.’s outlook?

The long-term thesis, the evidence coming in, and the environment around it. Thesis dated Jul 8, 2026.

Higher potential upsideImproving expectations

Next-FY EPS estimate change · 30 days

+0.0%

+10% or more+5%0%−5%−10% or less

5.60 → 5.60 EPS · FY ending Jul 31, 2028 · 24 analysts

Higher risk of downsideWeakening expectations

One observable signal. This measures changing earnings expectations, not the probability of a gain or loss.

How this is measured

Change in the same fiscal period’s mean EPS estimate from Sep 24, 2026 to Oct 24, 2026: (new ÷ prior − 1). Contributor count changed from 24 to 24; this is not the number of analysts revising. Source: FMP consensus snapshots. The ±10% axis is a display range.

Measure / period	Management expectations	Analyst expectations
FY 2027 · Q1
Revenue	—	937.73M
EPS	—	1.159
Gross margin	About 80%non-GAAP	—
FY 2027 · Annual
Revenue	$3.91B–$3.94B	3.93B
EPS	—	4.879
Gross margin	About 80%non-GAAP	—
FY 2028 · Annual
Revenue	—	4.57B
EPS	—	5.6

What the Thesis Depends On

Three published thesis conditions, with dated milestones shown separately.

Key Factor	Why It Matters	Current Status	Break Condition	Latest Evidence
Achieve non-GAAP EPS of about $4.10 in fiscal 2026	EPS target is about $4.10 per share.	Intact	EPS falls below $3.50 in FY26	Direct metric needs a verified mapping The published measure or accounting basis is not supported by an exact source binding. Source date unavailableLast status assessment Oct 24, 2026Compare required operating outcomes Compare scope, accounting basis and period before treating this evidence as progress against an annual requirement. Management context Stated as a priority in 3 of last 3 quarters. Non-GAAP net income per share increased from $3.28 in fiscal 2025 to $4.21 in fiscal 2026, surpassing the guidance range of $4.10 to $4.11. The trajectory is delivering consistent improvement aligned with management's stated target. Delivery assessment Oct 24, 2026
Increase non-GAAP operating income to about $757M in fiscal 2026	A primary condition in Zscaler, Inc.'s published investment case. The stated target is ~$757M.	Intact	Operating income stays negative or below $500M in FY26	Direct metric needs a verified mapping The published measure or accounting basis is not supported by an exact source binding. Source date unavailableLast status assessment Oct 24, 2026Compare required operating outcomes Compare scope, accounting basis and period before treating this evidence as progress against an annual requirement. Management context Stated as a priority in 3 of last 3 quarters. Non-GAAP income from operations increased from $580.1 million in fiscal 2025 to $767.1 million in fiscal 2026, exceeding the guidance range of $755 million to $757 million. The trajectory is delivering growth consistent with management's stated goal. Delivery assessment Oct 24, 2026
Achieve about $3.33B revenue in fiscal 2026	A primary condition in Zscaler, Inc.'s published investment case. The stated target is ~$3.33B.	Intact	Revenue falls below $3.0B in FY26	Revenue: $898.185M FY2026-Q4; GAAP. Published target: ~$3.33B. Target period is not explicitly aligned with this observation. Source published Sep 3, 2026898,185,000 USD · source valueSource reportLast status assessment Oct 24, 2026 Measurement source consolidated · GAAP FY2026-Q4 · Period ending Jul 31, 2026 Source: stock_quarterly_financials_fmp. Reference: 2026-Q4. Source status: unverified. Compare required operating outcomes Compare scope, accounting basis and period before treating this evidence as progress against an annual requirement. Management context Stated as a priority in 3 of last 3 quarters. Fiscal 2026 revenue grew 25% year over year from $2.673 billion in 2025 to $3.353 billion in 2026, slightly exceeding guidance of approximately $3.33 billion. The trajectory is delivering consistent strong growth aligned with management's stated target. Delivery assessment Oct 24, 2026

Stored thesis · Jul 8, 2026. Latest Evidence uses source-matched measurements where available, alongside the last thesis-monitor assessment. Source periods and assessment dates are shown separately. A new measurement does not automatically change the published status or verify an older target.

Incoming Evidence

Compare these dated observations with the operating requirements above

Expectations trend

Same fiscal period

FY2028 · fiscal year ending 2028-07-31 · fmp

FY2028 EPS$5.60

$5.38 → $5.60 · observed estimates

FY2028 revenue$4.57B

$4.54B → $4.57B · observed estimates

Exact estimates & source dates

One fiscal period and provider throughout. At least five contributors are required for each plotted metric; missing coverage stays a gap. Axes show the observed range. Counts measure coverage, not revisions.

FY2028 estimate observations · fmp
Snapshot	EPS	Revenue	EPS / revenue analysts
2026-08-01	$5.38	$4,541,642,671	13 / 31
2026-08-02	$5.38	$4,541,642,671	13 / 31
2026-08-03	$5.38	$4,541,642,671	13 / 31
2026-08-04	$5.38	$4,541,642,671	13 / 31
2026-08-05	$5.38	$4,541,642,671	13 / 31
2026-08-06	$5.38	$4,541,642,671	13 / 31
2026-08-08	$5.38	$4,541,642,672	13 / 31
2026-08-09	$5.38	$4,541,642,672	13 / 31
2026-08-10	$5.38	$4,541,642,672	13 / 31
2026-08-12	$5.38	$4,541,642,672	13 / 31
2026-08-13	$5.38	$4,541,642,672	13 / 31
2026-08-14	$5.38	$4,541,642,672	13 / 31
2026-08-15	$5.38	$4,541,642,672	13 / 31
2026-08-16	$5.38	$4,541,642,672	13 / 31
2026-08-17	$5.38	$4,541,642,672	13 / 31
2026-08-18	$5.38	$4,541,642,672	13 / 31
2026-08-19	$5.38	$4,541,642,672	13 / 31
2026-08-20	$5.37	$4,538,710,360	13 / 31
2026-08-21	$5.37	$4,538,710,360	13 / 33
2026-08-22	$5.37	$4,538,710,360	13 / 33
2026-08-23	$5.37	$4,538,710,360	13 / 33
2026-08-24	$5.37	$4,538,710,360	13 / 33
2026-08-25	$5.37	$4,538,929,380	13 / 33
2026-08-26	$5.37	$4,538,929,380	13 / 34
2026-08-27	$5.37	$4,538,929,380	13 / 34
2026-08-28	$5.37	$4,538,929,380	13 / 34
2026-08-29	$5.37	$4,538,935,940	13 / 34
2026-08-30	$5.37	$4,538,935,940	13 / 34
2026-08-31	$5.37	$4,538,935,940	13 / 34
2026-09-01	$5.37	$4,539,057,627	13 / 34
2026-09-02	$5.37	$4,539,057,627	13 / 34
2026-09-03	$5.37	$4,539,057,627	13 / 34
2026-09-04	$5.47	$4,547,848,688	13 / 34
2026-09-05	$5.60	$4,566,063,400	21 / 28
2026-09-06	$5.60	$4,566,063,400	21 / 28
2026-09-07	$5.60	$4,566,063,400	21 / 28
2026-09-08	$5.60	$4,564,987,684	21 / 29
2026-09-09	$5.60	$4,564,987,684	21 / 29
2026-09-10	$5.60	$4,565,339,368	22 / 30
2026-09-11	$5.60	$4,565,347,476	23 / 30
2026-09-12	$5.60	$4,565,672,542	23 / 30
2026-09-13	$5.60	$4,565,672,542	24 / 31
2026-09-14	$5.60	$4,565,672,542	24 / 31
2026-09-15	$5.60	$4,565,671,263	24 / 31
2026-09-16	$5.60	$4,565,672,390	24 / 31
2026-09-17	$5.60	$4,565,672,390	24 / 31
2026-09-18	$5.60	$4,565,672,390	24 / 31
2026-09-19	$5.60	$4,565,672,390	24 / 31
2026-09-20	$5.60	$4,565,672,390	24 / 31
2026-09-21	$5.60	$4,565,672,390	24 / 31
2026-09-22	$5.60	$4,565,672,390	24 / 31
2026-09-23	$5.60	$4,565,672,390	24 / 31
2026-09-24	$5.60	$4,565,672,390	24 / 31
2026-09-25	$5.60	$4,565,672,390	24 / 31
2026-09-26	$5.60	$4,565,672,889	24 / 31
2026-09-27	$5.60	$4,565,672,889	24 / 31
2026-09-28	$5.60	$4,565,672,889	24 / 31
2026-09-29	$5.60	$4,565,680,783	24 / 31
2026-09-30	$5.60	$4,565,680,783	24 / 31
2026-10-01	$5.60	$4,565,680,783	24 / 31
2026-10-02	$5.60	$4,565,680,783	24 / 31
2026-10-03	$5.60	$4,565,680,783	24 / 31
2026-10-04	$5.60	$4,565,680,783	24 / 31
2026-10-05	$5.60	$4,565,680,783	24 / 31
2026-10-06	$5.60	$4,565,680,783	24 / 31
2026-10-07	$5.60	$4,565,680,783	24 / 31
2026-10-08	$5.58	$4,567,099,481	24 / 30
2026-10-09	$5.60	$4,568,582,908	24 / 30
2026-10-10	$5.60	$4,568,598,731	24 / 31
2026-10-11	$5.60	$4,568,598,731	24 / 31
2026-10-12	$5.60	$4,568,598,731	24 / 31
2026-10-13	$5.60	$4,568,598,732	24 / 31
2026-10-14	$5.60	$4,568,598,732	24 / 31
2026-10-15	$5.60	$4,568,598,732	24 / 31
2026-10-16	$5.60	$4,568,598,732	24 / 31
2026-10-17	$5.60	$4,568,598,732	24 / 31
2026-10-18	$5.60	$4,568,598,731	24 / 31
2026-10-19	$5.60	$4,568,598,731	24 / 31
2026-10-20	$5.60	$4,568,598,731	24 / 31
2026-10-21	$5.60	$4,568,621,847	24 / 32
2026-10-22	$5.60	$4,568,621,847	24 / 32
2026-10-23	$5.60	$4,568,621,847	24 / 32
2026-10-24	$5.60	$4,568,621,847	24 / 32

Revenue and EPS estimates track expectations. They are not delivered results or like-for-like proof of a required annual path.

Compare required revenue and earnings

Analyst view

Monthly observations

Buy / Strong BuyHoldSell / Strong Sell

Exact monthly counts

Monthly rating snapshots · fmp. Missing snapshots are not zero.
Date	Buy*	Hold
2026-05-01	40	9
2026-06-01	39	9
2026-07-01	38	8
2026-08-01	38	9
2026-09-01	37	10
2026-10-01	36	11

*Buy includes Strong Buy; Sell includes Strong Sell. Monthly counts describe the analyst mix, not the firms behind each recent action.

Latest: 36 Buy / Strong Buy · 11 Hold · 0 Sell / Strong Sell

0 upgrades0 downgrades31 maintains

Recent actions · Sep 25–Oct 24 · 31 recorded

Price-target changes

30 days

○ Previous · ● Latest · common dollar scale

D.A. DavidsonOct 20

$215.00New observation · no comparable prior

Wells FargoOct 7 · prior Sep 4

$215.00 → $260.00+20.9%

WedbushOct 7

$240.00New observation · no comparable prior

Stifel NicolausOct 7 · prior May 27

$175.00 → $235.00+34.3%

StephensOct 7 · prior Sep 4

$215.00 → $265.00+23.3%

ScotiabankOct 7 · prior Oct 5

$240.00 → $255.00+6.3%

Rosenblatt SecuritiesOct 7

$250.00New observation · no comparable prior

Robert W. BairdOct 7 · prior May 27

$230.00 → $285.00+23.9%

NeedhamOct 7 · prior Sep 4

$215.00 → $255.00+18.6%

Morgan StanleyOct 7 · prior Sep 4

$165.00 → $185.00+12.1%

Mizuho SecuritiesOct 7 · prior May 27

$185.00 → $235.00+27.0%

JefferiesOct 7 · prior Sep 2

$220.00 → $250.00+13.6%

GuggenheimOct 7 · prior Jun 1

$214.00 → $254.00+18.7%

Cantor FitzgeraldOct 7 · prior May 27

$225.00 → $275.00+22.2%

Canaccord GenuityOct 7 · prior May 27

$210.00 → $250.00+19.0%

BarclaysOct 7 · prior Sep 4

$200.00 → $225.00+12.5%

RBC CapitalSep 25

$236.00New observation · no comparable prior

$0$156.75$313.50

13 raises · 0 cuts · 0 unchanged · 4 without a comparable prior

How this is measured

Sep 25, 2026–Oct 24, 2026. Each firm's latest positive target is paired only with its immediately prior positive target from the same provider, at most 180 days earlier. Unmatched observations have one dot; conflicting observations are not compared.

Outlook in Brief

The evidence, the remaining questions, and what comes next

What's improving

No recovery evidence is reported in the available driver assessments.

Still unresolved / key risks

Achieve non-GAAP EPS of about $4.10 in fiscal 2026Direct metric needs a verified mapping
Increase non-GAAP operating income to about $757M in fiscal 2026Direct metric needs a verified mapping
Achieve about $3.33B revenue in fiscal 2026Revenue: $898.185M

Next proof point

Nov 24, 2026

Look for updated results and guidance against the published targets, plus direct evidence for unresolved drivers.

Review earnings

Bottom line

3 of 3 published conditions remain under pressure or need verification. The next results need to address those conditions.

The dated weekly assessment and its assumptions are available in Read detailed Outlook.

Historical risk context

Observed price history; separate from operating scenarios

Price sensitivity

2.5%Typical daily move · historical

Downside history

-64.9%Maximum drawdown · trailing year

Read detailed Outlook Company context, assumptions & risks

Zscaler, Inc. outlook in detail

The weekly editorial context below is a separate assessment from the dated monitor evidence above. Recovery observations do not automatically change the published thesis. Unverified outside influences are hypotheses, not measured driver evidence.

Updated Oct 24, 2026

What kind of bet this is

This is a growth-oriented cybersecurity business, with a thesis that depends on continued expansion and improving profits. The long-term thesis is on watch: management met or exceeded its fiscal 2026 goals, while recent signals have turned cautious and performance has trailed its industry cohort.

What's priced into Zscaler, Inc.

ZS is tagged as stretched, trading at a 2.96-times premium to peers, with a low-confidence valuation model and an expectations gap of 0.11. That suggests substantial growth expectations are already reflected, though the evidence does not establish exactly what the market assumes.

What the fundamentals likely do

In fiscal 2026, revenue grew 25% year over year, while non-GAAP operating income and earnings per share exceeded management's stated goals. Near term, the September earnings miss, restructuring event, and cautious signal temper that progress; the reported miss probability is low, but the snapshot also notes recent misses.

What Zscaler, Inc. hinges on

The multi-year view depends on sustaining revenue growth and profit progress while restoring confidence after the recent miss. A reversal of recently raised guidance would add a credibility concern, while easier Fed policy or continued strong results from major technology peers could support the sector backdrop.