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Earnings Preview: Zscaler
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Earnings Preview: Zscaler
Nov 24, 2025 6:39 AM

Zscaler ( ZS ) is set to give its latest quarterly earnings report on Tuesday, 2025-11-25. Here's what investors need to know before the announcement.

Analysts estimate that Zscaler ( ZS ) will report an earnings per share (EPS) of $0.50.

Anticipation surrounds Zscaler's ( ZS ) announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Earnings Track Record

In the previous earnings release, the company beat EPS by $0.42, leading to a 1.45% drop in the share price the following trading session.

Here's a look at Zscaler's ( ZS ) past performance and the resulting price change:

Quarter Q4 2025 Q3 2025 Q2 2025 Q1 2025
EPS Estimate 0.47 0.76 0.69 0.63
EPS Actual 0.89 0.84 0.78 0.77
Price Change % -1.00 10.00 3.00 -5.00

Market Performance of Zscaler's Stock

Shares of Zscaler ( ZS ) were trading at $275.01 as of November 21. Over the last 52-week period, shares are up 30.77%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Take on Zscaler

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Zscaler ( ZS ).

With 28 analyst ratings, Zscaler ( ZS ) has a consensus rating of Outperform. The average one-year price target is $336.25, indicating a potential 22.27% upside.

Peer Ratings Overview

In this comparison, we explore the analyst ratings and average 1-year price targets of Fortinet, Gen Digital and Monday.Com, three prominent industry players, offering insights into their relative performance expectations and market positioning.

Analysts currently favor an Neutral trajectory for Fortinet, with an average 1-year price target of $83.0, suggesting a potential 69.82% downside.

Analysts currently favor an Neutral trajectory for Gen Digital, with an average 1-year price target of $32.25, suggesting a potential 88.27% downside.

Analysts currently favor an Outperform trajectory for Monday.Com, with an average 1-year price target of $246.82, suggesting a potential 10.25% downside.

Analysis Summary for Peers

The peer analysis summary provides a snapshot of key metrics for Fortinet, Gen Digital and Monday.Com, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Company Consensus Revenue Growth Gross Profit Return on Equity
Zscaler ( ZS ) Outperform 21.31% $546.99M -0.98%
Fortinet Neutral 14.38% $1.39B 33.90%
Gen Digital Neutral 25.26% $954M 5.56%
Monday.Com Outperform 26.24% $281.07M 1.06%

Key Takeaway:

Zscaler ( ZS ) ranks first in revenue growth among its peers. It has the lowest gross profit margin. Zscaler ( ZS ) has the lowest return on equity.

About Zscaler

Zscaler ( ZS ) is a software-as-a-service, or SaaS, firm focusing on providing cloud-native cybersecurity solutions to primarily enterprise customers. Zscaler's ( ZS ) offerings can be broadly partitioned into Zscaler Internet Access, which provides secure access to external applications, and Zscaler Private Access, which provides secure access to internal applications. The firm is headquartered in San Jose, California, and went public in 2018.

Zscaler's Financial Performance

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Positive Revenue Trend: Examining Zscaler's ( ZS ) financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 21.31% as of 31 July, 2025, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: Zscaler's ( ZS ) net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -2.44%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Zscaler's ( ZS ) ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -0.98%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Zscaler's ( ZS ) ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -0.3%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Zscaler's ( ZS ) debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.0.

To track all earnings releases for Zscaler ( ZS ) visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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