Zscaler, Inc. (ZS) earnings on May 26, 2026
Prior outlook: Pessimistic Outcome: Accurate
Zscaler shares plunged following its earnings release, even with analysts maintaining a positive rating. The steep decline suggests the market was very sensitive to the earnings details or sector trends.
ZS price around the earnings
126.41
Change: -31.5%
2026-05-28, 00:00 UTC
- Price: green if it ends above the starting price; red if it ends below
- Start of the measured window
- End of the measured window
- Market open
- No trading (market closed)
- Starting price
Prior thesis
Prior outlook: Pessimistic Outcome: Accurate
- Thesis published
Analysts optimistic, but extreme rally suggests sell-the-news risk.
Analysts are very optimistic about ZS's future, pointing to its strong earnings history and significant upside potential. However, the stock has seen a massive price increase recently, raising concerns about a potential sell-off after the positive news.
Context analyzed before publication
- Summary
- Analysts optimistic, but extreme rally suggests sell-the-news risk.
- Playbook
- The scenario is mixed given the high recent price surge and potential for a pullback, with market digestion of the latest news a key factor.
- Trend
- Expert opinion shifted sharply negative after recent rally.
Analysts
Drivers
-
Analysts
Positive
Analysts are very positive on ZS, with most recommending a 'buy' and setting a price target that points to an optimistic scenario.
Evidence
- Analyst consensus
- Strong buy
- Consensus average (1-5)
- 1.5
- Analysts covering the stock
- 45
- Average price target
- 223.39
- Lowest price target
- 155
- Highest price target
- 330
- Upside to price target
- 20.1%
- Revenue growth
- 25.9%
- Forward EPS
- 4.58
- Trailing EPS
- -0.44
- Analyst moves in the last 60 days
- 9
- Strong buy: 8
- Buy: 32
- Hold: 8
- Sell: 0
- Strong sell: 0
- Strong buy
- 8
- Buy
- 32
- Hold
- 8
- Sell
- 0
- Strong sell
- 0
- May 21, 2026 · Wells Fargo: Maintains rating (Overweight → Overweight)
- May 21, 2026 · Rosenblatt: Maintains rating (Buy → Buy)
- May 18, 2026 · B. Riley Securities: Upgrades rating (Neutral → Buy)
- May 18, 2026 · Rosenblatt: Maintains rating (Buy → Buy)
- May 18, 2026 · Keybanc: Maintains rating (Overweight → Overweight)
- May 1, 2026 · Citizens: Maintains rating (Market Outperform → Market Outperform)
- April 22, 2026 · Morgan Stanley: Downgrades rating (Overweight → Equal-Weight)
- April 15, 2026 · Keybanc: Maintains rating (Overweight → Overweight)
- April 9, 2026 · BTIG: Downgrades rating (Buy → Neutral)
News and sentiment
Drivers
-
News & sentiment
Negative
Recent expert evaluations show a significant downturn, despite the stock's rally. This suggests that the immediate price action has weakened, making it a risky time for a more pessimistic scenario.
Evidence
Sentiment
- Sentiment
- Constructive
- Mention volume
- Low
- Normalized volume
- 33%
News
Sources (5)
- Why Zscaler Stock Is Surging On Tuesday? — Benzinga
- Stock Market Today: S&P 500, Dow, Nasdaq Futures Up Amid US 'Defensive Strikes' On Iran— Elbit Systems, Intuitive Machines, Zscaler In Focus (UPDATED) — Benzinga
- Zscaler Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call — Benzinga
- AutoZone, Zscaler And 3 Stocks To Watch Heading Into Tuesday — Benzinga
- Wells Fargo Maintains Overweight on Zscaler, Raises Price Target to $210 — Benzinga
Technicals
Drivers
-
Technical
Negative
The stock's price has surged dramatically over the past 14 and 30 days. This rapid increase suggests the stock may be overvalued heading into earnings. Historically, similar scenarios ahead of earnings have increased the risk of a price drop afterward.
Evidence
- Average true range (ATR)
- 4.4%
- Distance to 52-week high
- -44.8%
- 14-day change (14d)
- +33.7%
- 30-day change (30d)
- +54.1%
- 30-day relative strength
- +54.1%
- Benchmark change (0d)
- +0.0%
- Nearest support
- 174.7
- Nearest resistance
- 189.02
- Volume accumulation ratio (14d / 46d)
- 3.29
Trends
Evidence
- Average earnings surprise
- +17.8%
- February 26, 2026: actual EPS 1.01 vs estimate 0.9 (surprise +12.6%)
- November 25, 2025: actual EPS -0.07 vs estimate -0.11 (surprise +36.7%)
- September 2, 2025: actual EPS 0.89 vs estimate 0.8 (surprise +11.0%)
- May 29, 2025: actual EPS 0.84 vs estimate 0.76 (surprise +10.8%)
Expected move
Drivers
-
Past earnings
Positive
ZS has a strong recent record of exceeding earnings expectations for the last four reports. The company has consistently surprised investors with better-than-expected results.
There is no implied-move data available for this event.
Reactions over its last 19 earnings
- Median move
- 9.4%
- 75th percentile move
- 12.2%
- 90th percentile move
- 16.4%
- Up / down moves
- 7 / 12
- Average up move
- +9.0%
- Average down move
- -9.3%
Monitoring and close
What Zscaler, Inc. reported
There is no monitoring data available for this event.
Pre-market second reading after the results
There is no second reading available for this event.
How the stock reacted
- Outcome
- Accurate
- Consolidated
- -31.5%
- Max favorable move (MFE)
- 31.9%
- Max adverse move (MAE)
- 2%