GET DAILY SIGNALSZscaler (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 Stochastic Oscillator stays in oversold zone for 2 days
Be on the lookout for a price bounce soon.
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a +9.54% 3-day Advance, the price is estimated to grow further. Considering data from situations where ZS advanced for three days, in 260 of 345 cases, the price rose further within the following month. The odds of a continued upward trend are 75%.
The Aroon Indicator entered an Uptrend today. In 180 of 230 cases where ZS Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 78%.
Bearish Trend Analysis
The 10-day RSI Indicator for ZS moved out of overbought territory on October 29, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 35 similar instances where the indicator moved out of overbought territory. In 27 of the 35 cases, the stock moved lower in the following days. This puts the odds of a move lower at 77%.
The Momentum Indicator moved below the 0 level on November 04, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on ZS as a result. In 62 of 80 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 77%.
The Moving Average Convergence Divergence Histogram (MACD) for ZS turned negative on November 02, 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 46 similar instances when the indicator turned negative. In 35 of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at 76%.
ZS moved below its 50-day moving average on November 05, 2026 date and that indicates a change from an upward trend to a downward trend.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 80%.
ZS broke above its upper Bollinger Band on October 23, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 2 (best 1 - 100 worst) indicates that the company is seriously undervalued 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 (12.404) is normal, around the industry mean (16.272). ZS has a moderately low P/E Ratio (-506.821) as compared to the industry average of (52.956). Projected Growth (PEG Ratio) (2.043) is also within normal values, averaging (3.648). Dividend Yield (0.000) settles around the average of (0.430) among similar stocks. P/S Ratio (9.158) is also within normal values, averaging (103.889).
The Tickeron Price Growth Rating for this company is 50 (best 1 - 100 worst), indicating steady price growth. ZS’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 92 (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 94 (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 100 (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 92, placing this stock worse than average.
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an antivirus & cloud security platform
Industry ComputerCommunications
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