Equities Analysts Offer Predictions for Zscaler Q2 Earnings

Zscaler, Inc. (NASDAQ:ZS) is receiving updated forecasts from investment analysts regarding its upcoming Q2 2025 earnings. Notably, on December 3rd, investment firm Wedbush raised its earnings estimate for Zscaler, now predicting a loss of $0.06 per share for the quarter, compared to a previous estimate of $0.26. Wedbush has given Zscaler an ‘Outperform’ rating with a price target of $220.00. Overall, the consensus estimate for Zscaler’s total earnings for the current financial year stands at a projected loss of $0.31 per share. Additionally, Wedbush has offered further insights into Zscaler’s future earnings, estimating Q3 2025 at a loss of $0.07 EPS and Q4 2025 at a loss of $0.01 EPS. For the entire fiscal year 2025, earnings are expected to amount to a loss of $0.12 EPS, with modest improvements seen in subsequent quarters through fiscal year 2026, culminating in an expected earnings of $0.35 EPS by the end of that fiscal year.

In recent analyst reports, other investment firms have also made adjustments to their Zscaler price targets. Oppenheimer raised its price target from $230.00 to $250.00 while maintaining an ‘Outperform’ rating on December 3rd. Conversely, UBS Group decreased its target from $270.00 to $250.00 and kept a ‘Buy’ rating. On the same day, Morgan Stanley adjusted its price target downward from $215.00 to $205.00, maintaining an ‘Equal Weight’ rating. Canaccord Genuity Group raised its target from $220.00 to $230.00 with a ‘Buy’ rating, and KeyCorp increased its target price from $245.00 to $250.00, assigning an ‘Overweight’ rating. Overall, 11 analysts rate Zscaler stock as a hold while 23 recommend it as a buy. According to MarketBeat, the stock enjoys an average rating of ‘Moderate Buy’ and has a consensus price target of $224.84.

Zscaler Trading Performance

As of the latest trading session, Zscaler shares opened at $211.99. The company has a market capitalization of $32.53 billion, with a price-to-earnings (P/E) ratio of -847.96 and a beta of 0.82. In terms of stock performance over the past year, Zscaler has seen a low of $153.45 and a high of $259.61. The company’s fifty-day and two-hundred-day simple moving averages are currently $193.47 and $185.71, respectively.

In its most recent earnings report released on December 2nd, Zscaler exceeded expectations with an EPS of $0.77, surpassing the consensus estimate of $0.63 by $0.14. The company also reported quarterly revenues of $628.00 million, considerably exceeding the analysts' forecast of $605.51 million, showing a 26.4% rise year-on-year. A year ago, during the same quarter, Zscaler reported an EPS loss of $0.18.

Institutional Investment Activity

Recent trading activities indicate that several hedge funds and institutional investors have been actively buying and selling Zscaler shares. For instance, Geode Capital Management LLC raised its stake in Zscaler by 3.9% during the third quarter, owning 1,625,861 shares now worth approximately $277 million following a purchase of an additional 60,414 shares. Champlain Investment Partners LLC increased its holdings by 28.2%, now owning 1,289,350 shares valued at about $220 million after acquiring 283,540 new shares. Bank of New York Mellon Corp also enhanced its position by 5.3%, claiming a total of 496,047 shares valued at around $95 million after buying an extra 25,181 shares. Moreover, Westfield Capital Management Co. LP has raised its stakes by 33.8% and Federated Hermes Inc. increased its position by 18.3%. Overall, institutional investors own about 46.45% of Zscaler shares.

Insider Sales

In recent insider transactions, Michael J. Rich sold 4,813 Zscaler shares in a transaction on September 17th, averaging $171.28 per share, totalling approximately $824,370. Following this transaction, he still holds 103,259 shares valued at around $17.69 million. Similarly, Robert Schlossman sold 1,435 shares on October 9th at an average price of $181.70, totalling $260,739.50, while maintaining ownership of 105,806 shares worth about $19.22 million. In the past ninety days, insiders have collectively sold 30,502 shares valued at $5.26 million, and currently, insiders own 18.10% of Zscaler’s total stock.

Company Overview

Zscaler, Inc. functions primarily as a cloud security firm, providing various solutions including Zscaler Internet Access and Zscaler Private Access. The former secures user access to externally managed applications such as SaaS, while the latter focuses on providing secure access to internally managed applications. This positions Zscaler meaningfully in the cybersecurity industry, making it a key player in safeguarding digital assets.

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