Post-earnings recap
Reported
Tue, May 26, 2026
EPS actual
$1.08
EPS est.
$-0.04
EPS surprise
+3018.92%
1-day move
+1.22%
Zscaler reported better-than-expected earnings per share, significantly exceeding analyst expectations. However, the stock reaction was flat, indicating that investors may be cautious or awaiting more information. The lack of revenue details and management commentary could also contribute to the muted stock movement.
| Metric | Actual | Expected | Surprise |
|---|---|---|---|
| EPS | $1.08 | $1.01 | +3018.92% |
| Revenue | — | $836M | — |
No transcript is on record for this earnings call, so the analysis is based solely on numerical results.
Zscaler, Inc. is a leading provider of cloud-based security solutions, helping organizations secure their internet traffic and protect sensitive data. As a part of the Information Technology sector, Zscaler plays a crucial role in the growing demand for cybersecurity, especially as more businesses move to cloud environments.
Last quarter
In Q2-2026, Zscaler reported an impressive earnings surprise of over 2248%, with EPS coming in at $1.01. This strong performance led to a 7.49% increase in stock price the following day.
Management promises and guidance
EPS beat streak
8Q
EPS beat rate
100%
Avg EPS surprise
+1982.42%
Avg 1-day reaction
+1.92%
Analysts are generally optimistic about Zscaler's upcoming earnings, expecting solid EPS and revenue growth. The company has consistently beaten earnings estimates in the past, which raises expectations for this quarter.
Bull case
If Zscaler can maintain its momentum and deliver strong results, it could further solidify its position as a leader in the cybersecurity space, attracting more investors.
Bear case
Conversely, if Zscaler fails to meet expectations or provides weak guidance, it could lead to a significant sell-off, especially given the high valuation.
Key metrics to watch
EPS
$1.01Earnings per share is a key indicator of profitability and will show how well the company is managing costs and generating income.
Revenue
$836MTotal revenue reflects the company's ability to grow its customer base and expand its market share, which is vital in the competitive cybersecurity landscape.
The print will turn on these.
Q1
Will Zscaler's EPS exceed $1.01, confirming its strong profitability?
A beat on EPS would reinforce investor confidence and could lead to a positive stock reaction.
Q2
What guidance will management provide for future revenue growth?
Investors will closely watch for any signs of slowing growth or challenges in the market, which could impact stock performance.
—
Est. EPS
$1.01
Est. Rev
$543M
Impl. Move
±8.7%
Why consensus could be wrong
The Street may underestimate Zscaler's ability to leverage its cloud-based solutions for sustained growth, especially given the increasing demand for cybersecurity.
Supporting evidence
Zscaler has consistently beaten EPS estimates, indicating strong operational performance.
The options market is pricing in a larger move than historical averages, suggesting heightened expectations.
Recent trends in cybersecurity spending could lead to stronger-than-expected revenue growth.
Key risk
If Zscaler's revenue growth comes in below $836M, it could challenge the bullish outlook.
Pre-commit to what would confirm each case.
This quarter, the focus is on Zscaler's ability to sustain its impressive growth trajectory in a competitive market.
Bull confirmed if
Delivering an EPS of $1.01 or higher while maintaining strong revenue growth.
Bear confirmed if
Falling short of the $1.01 EPS target or providing weak future guidance.
What the market is pricing for the move.
Implied Move
±14.2%
Historical Avg
±2.4%
The options market is pricing in a significant potential move, indicating that investors are anticipating volatility around the earnings announcement.
Options are pricing ±14.2% while ZS has averaged ±2.4% over the last 8 prints — setup is pricing rich.
ATM IV
1.2%
30d HV
56.4%
Open-market trades by officers, directors, and 10%+ holders over the trailing 90 days.
Bought
$0.00
0 sh
0 insiders
Sold
$102,390.46
519 sh
1 insider
Net
$102,390.46
Net selling
Most Active Insiders· 12 open-market trades
$102,390.46
Net selling
Likely market behavior by outcome. Not investment advice.
Beat & raise
If Zscaler beats expectations, history suggests a potential stock increase of around 0.39%, confirming its growth narrative.
In line / cautious
If results are in line but management is cautious, the stock may react neutrally, reflecting uncertainty in future growth.
Miss
A miss could lead to a decline, with historical patterns suggesting an average drop of around 2.89%.
The lines on the call that would change the story.
Recent Transactions
Sep 25, 2026 · @ $195.64
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100 sh
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36 sh
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