Zscaler ( ZS ) will release its quarterly earnings report on Thursday, 2025-05-29. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Zscaler ( ZS ) to report an earnings per share (EPS) of $0.76.

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.

Overview of Past Earnings

During the last quarter, the company reported an EPS beat by $0.09, leading to a 2.91% increase in the share price on the subsequent day.

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

Performance of Zscaler Shares

Shares of Zscaler ( ZS ) were trading at $257.3 as of May 27. Over the last 52-week period, shares are up 62.96%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Perspectives 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 given Zscaler ( ZS ) a total of 24 ratings, with the consensus rating being Outperform. The average one-year price target is $241.67, indicating a potential 6.07% downside.

Peer Ratings Comparison

The below comparison of the analyst ratings and average 1-year price targets of Gen Digital, Monday.Com and CommVault Systems, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

Analysts currently favor an Neutral trajectory for Gen Digital, with an average 1-year price target of $27.5, suggesting a potential 89.31% downside.

Analysts currently favor an Outperform trajectory for Monday.Com, with an average 1-year price target of $336.67, suggesting a potential 30.85% upside.

Analysts currently favor an Outperform trajectory for CommVault Systems, with an average 1-year price target of $184.5, suggesting a potential 28.29% downside.

Insights: Peer Analysis

The peer analysis summary outlines pivotal metrics for Gen Digital, Monday.Com and CommVault Systems, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Zscaler ( ZS ) ranks at the top for Revenue Growth and Gross Profit among its peers. However, it has the lowest Return on Equity. Overall, Zscaler ( ZS ) is positioned well compared to its peers in terms of financial performance metrics.

Delving into Zscaler's Background

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.

Key Indicators: Zscaler's Financial Health

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

Positive Revenue Trend: Examining Zscaler's ( ZS ) financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 23.41% as of 31 January, 2025, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Net Margin: Zscaler's ( ZS ) net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -1.19%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Zscaler's ( ZS ) ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -0.51%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Zscaler's ( ZS ) ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -0.16%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Zscaler's ( ZS ) debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.77.

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.