Zscaler (ZS) Prepares for Q3 Fiscal 2026 Earnings with Expected +23% Revenue Growth
Key Takeaways
- Zscaler is scheduled to report third-quarter fiscal 2026 results after market close on May 26, 2026.
- Analyst consensus calls for revenue of approximately $835 million, representing about 23% year-over-year growth.
- Expected non-GAAP earnings per share stand at $1.00, up roughly 19% from the year-ago quarter.
- Company guidance projects revenue between $834 million and $836 million and non-GAAP EPS between $1.00 and $1.01.
- Investors will focus on annual recurring revenue trends, large-deal momentum, and updated fiscal 2026 outlook.
- Historical pattern shows consistent beats on revenue and profitability metrics in recent quarters.
Earnings Context and Why It Matters
Zscaler, a leader in cloud security, reports results on a fiscal year ending July 31. The upcoming third quarter covers the period from February 1 to April 30, 2026. Recent performance has featured robust revenue expansion driven by demand for zero-trust security solutions. Prior quarters delivered double-digit growth and margin expansion, supporting investor confidence in the company’s transition to larger enterprise deals. This report arrives amid steady industry spending on cybersecurity, making it a key checkpoint for assessing sustained momentum heading into the fiscal year-end. One thing that stands out is how consistently the company has executed through this transition.
Earnings Expectations
Consensus estimates point to third-quarter revenue near $835 million, reflecting approximately 23% year-over-year growth. Non-GAAP earnings per share are projected at $1.00. The company’s own guidance aligns closely, with revenue expected between $834 million and $836 million and non-GAAP EPS between $1.00 and $1.01. These figures compare to the prior-year quarter’s results, which showed solid expansion. Investors typically monitor annual recurring revenue additions, the number of customers generating over $1 million in annual recurring revenue, and any updates to full-year guidance. Zscaler has a track record of exceeding consensus expectations on both top-line and profitability metrics in recent periods, often leading to positive post-earnings stock reactions when results surpass forecasts. I also checked this using Tickeron’s AI Screener to see how ZS compares with others in the cybersecurity space.
Market Reaction and Investor Sentiment
Sentiment heading into the report remains constructive, supported by the company’s consistent execution and raised guidance in the prior quarter. Analysts highlight ongoing demand for cloud security amid evolving cyber threats. Key risk factors include potential macro-driven spending caution or any shortfall in new annual recurring revenue bookings. Historical post-earnings moves have often been favorable when results beat expectations, though volatility can occur if forward commentary disappoints relative to elevated hopes. From what I see, the setup looks balanced heading into the release.
Forward Outlook and Key Factors to Monitor
Following the release, attention will turn to management’s commentary on fiscal 2026 guidance and any adjustments to annual recurring revenue targets. Demand signals from large enterprise customers and progress in the Americas and international regions remain central. Margin trends, particularly non-GAAP operating margins, will be watched closely as the company scales. Industry dynamics such as competitive positioning in zero-trust architecture and integration with major cloud platforms could influence the narrative.
Investors should also note any updates on customer acquisition costs and retention rates. Broader economic conditions affecting IT budgets may factor into forward expectations. The report provides a timely view of whether recent growth acceleration can be sustained through the remainder of the fiscal year. I’m watching this closely for any signals on how the company plans to navigate the rest of the year.
Enhancing Analysis with Tickeron’s AI Screener
When preparing for earnings like this, I often turn to Tickeron’s AI Screener to quickly filter and compare stocks based on technical patterns, fundamentals, and industry trends. It allows scanning thousands of names with customizable criteria such as market cap, volatility, and performance metrics, which helps surface relevant trade ideas and peer comparisons more efficiently than manual reviews. The tool is particularly useful for identifying breakout candidates or understanding relative strength within a sector. AI Screener
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ZS's RSI Indicator peaks and leaves overbought zone
The 10-day RSI Indicator for ZS moved out of overbought territory on May 27, 2026. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 39 instances where the indicator moved out of the overbought zone. In of the 39 cases the stock moved lower in the days that followed. This puts the odds of a move down at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on May 27, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on ZS as a result. In of 73 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for ZS turned negative on May 27, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 45 similar instances when the indicator turned negative. In of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at .
ZS moved below its 50-day moving average on June 03, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for ZS crossed bearishly below the 50-day moving average on June 08, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ZS declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 53 cases where ZS's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ZS advanced for three days, in of 352 cases, the price rose further within the following month. The odds of a continued upward trend are .
ZS may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 243 cases where ZS Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (8.475) is normal, around the industry mean (16.858). P/E Ratio (0.000) is within average values for comparable stocks, (65.613). Projected Growth (PEG Ratio) (1.351) is also within normal values, averaging (1.733). ZS has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.023). P/S Ratio (6.211) is also within normal values, averaging (143.896).
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. ZS’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ZS’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 93, placing this stock worse than average.
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General Information
an antivirus & cloud security platform
Industry ComputerCommunications
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