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What to Expect from Zscaler's Earnings
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What to Expect from Zscaler's Earnings
Sep 1, 2025 7:17 AM

Zscaler ( ZS ) will release its quarterly earnings report on Tuesday, 2025-09-02. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Zscaler ( ZS ) to report an earnings per share (EPS) of $0.47.

Investors in Zscaler ( ZS ) are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Past Earnings Performance

In the previous earnings release, the company beat EPS by $0.08, leading to a 9.79% increase in the share price the following trading session.

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

Quarter Q3 2025 Q2 2025 Q1 2025 Q4 2024
EPS Estimate 0.76 0.69 0.63 0.69
EPS Actual 0.84 0.78 0.77 0.88
Price Change % 10.0% 3.0% -5.0% -19.0%

Tracking Zscaler's Stock Performance

Shares of Zscaler ( ZS ) were trading at $280.42 as of August 28. Over the last 52-week period, shares are up 43.41%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Insights Shared by Analysts on Zscaler

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

Analysts have provided Zscaler ( ZS ) with 16 ratings, resulting in a consensus rating of Outperform. The average one-year price target stands at $334.5, suggesting a potential 19.29% upside.

Peer Ratings Overview

The analysis below examines the analyst ratings and average 1-year price targets of Fortinet, CyberArk Software and Check Point Software, three significant industry players, providing valuable 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 $93.95, suggesting a potential 66.5% downside.

Analysts currently favor an Neutral trajectory for CyberArk Software, with an average 1-year price target of $462.64, suggesting a potential 64.98% upside.

Analysts currently favor an Neutral trajectory for Check Point Software, with an average 1-year price target of $223.36, suggesting a potential 20.35% downside.

Analysis Summary for Peers

In the peer analysis summary, key metrics for Fortinet, CyberArk Software and Check Point Software are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Company Consensus Revenue Growth Gross Profit Return on Equity
Zscaler ( ZS ) Outperform 22.57% $522.06M -0.24%
Fortinet Neutral 13.64% $1.32B 21.88%
CyberArk Software Neutral 45.98% $247.49M -3.83%
Check Point Software Neutral 6.02% $574M 7.26%

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.

Get to Know Zscaler Better

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 Economic Impact: An Analysis

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Growth: Over the 3 months period, Zscaler ( ZS ) showcased positive performance, achieving a revenue growth rate of 22.57% as of 30 April, 2025. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Zscaler's ( ZS ) net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -0.61%, 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 -0.24%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Zscaler's ( ZS ) ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -0.08%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Zscaler's ( ZS ) debt-to-equity ratio is below the industry average. With a ratio of 0.68, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

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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