Post-earnings recap
Reported
Thu, Sep 3, 2026
EPS actual
$1.19
EPS est.
$0.06
EPS surprise
+1788.89%
1-day move
+2.94%
Zscaler's strong earnings report, particularly the significant EPS beat and solid revenue growth, led to a 2.94% increase in stock price. The company is seeing robust demand for its AI security solutions and a growing customer base, which bodes well for future performance. However, the lack of specific guidance for FY27 leaves some uncertainty for investors.
| Metric | Actual | Expected | Surprise |
|---|---|---|---|
| EPS | $1.19 | N/A | +1788.89% |
| Revenue | N/A | N/A | N/A |
| Year-over-Year Revenue Growth | 25% | N/A | N/A |
| Non-GAAP Operating Margin | 24.3% | N/A | N/A |
| Net New ARR Growth | 17% | N/A | N/A |
Management expressed confidence in the company's performance, highlighting strong revenue growth and profitability. They noted a significant increase in demand for AI security solutions.
Zscaler achieved 25% year-over-year revenue and ARR growth in Q4 FY26.
Security for AI bookings increased over 50% sequentially in Q4.
Zscaler, Inc. is a technology company specializing in cloud-based security solutions. As businesses increasingly move to the cloud, Zscaler's services help protect sensitive data and maintain secure connections, making it a key player in the growing cybersecurity sector.
Last quarter
In Q3-2026, Zscaler reported an impressive EPS of $1.08, significantly exceeding expectations. This marked a continuation of their strong performance, with a notable stock increase following the announcement.
Management promises and guidance
EPS beat streak
8Q
EPS beat rate
100%
Avg EPS surprise
+1982.42%
Avg 1-day reaction
+1.92%
Overall expectations for Zscaler's upcoming earnings are cautiously optimistic, given their strong track record of beating EPS estimates. Investors are keen to see if this trend continues and how the company addresses potential challenges in the cybersecurity landscape.
Bull case
The bullish view hinges on Zscaler continuing its streak of EPS surprises, indicating robust demand for its services and effective cost management.
Bear case
On the other hand, a bear case could emerge if Zscaler fails to meet growth expectations or if there are signs of increased competition impacting their market share.
The print will turn on these.
Q1
What is the expected revenue growth rate for the upcoming quarter?
Revenue growth will be a key indicator of Zscaler's market demand and operational effectiveness, influencing investor sentiment.
Q2
How many new customers did Zscaler acquire this quarter?
Customer acquisition is critical for sustaining growth; a strong increase could bolster confidence in Zscaler's future performance.
—
Est. EPS
—
Est. Rev
—
Impl. Move
±38.2%
Why consensus could be wrong
The Street may underestimate Zscaler's ability to capture market share in the growing cybersecurity sector, especially given its recent customer acquisition success.
Supporting evidence
Zscaler has consistently beaten EPS estimates, indicating strong operational performance.
The options market is pricing in a relatively modest move, suggesting that traders may not fully appreciate the potential for significant growth.
Historical trends show that Zscaler's stock often reacts positively to strong earnings surprises.
Key risk
If customer growth significantly exceeds expectations, it could challenge the current cautious consensus.
Pre-commit to what would confirm each case.
This quarter's performance will be closely watched as it reflects Zscaler's ability to maintain momentum in a competitive cybersecurity market.
Bull confirmed if
Achieving revenue growth of at least 20% year-over-year would confirm the bullish outlook.
Bear confirmed if
If revenue growth falls below 10%, it could signal potential challenges in customer acquisition or market competition.
What the market is pricing for the move.
Implied Move
±2.57%
Historical Avg
±2.4%
The options market is pricing in a move of about 2.57%, suggesting that traders expect some volatility around the earnings announcement.
Options are pricing ±2.6% while ZS has averaged ±2.4% over the last 8 prints — setup is roughly in line with history.
ATM IV
0.6%
30d HV
127.9%
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 positive market reaction, with an average 1-day move of +1.13%, confirming strong demand.
In line / cautious
If results are in line with expectations, the market may react cautiously, leading to muted stock movement as investors assess future guidance.
Miss
In the event of a miss, history suggests a potential downside move, with an average reaction of -0.53%, indicating disappointment among investors.
The lines on the call that would change the story.
Recent Transactions
Sep 25, 2026 · @ $195.64
189 sh
$36,976.55
Sep 25, 2026 · @ $196.57
118 sh
$23,195.54
Sep 25, 2026 · @ $194.76
100 sh
$19,475.92
Sep 25, 2026 · @ $203.15
36 sh
$7,313.23
Sep 25, 2026 · @ $205.35
20 sh
$4,106.99
Open-market trades only (Form 4 codes P/S). Awards, exercises, and tax-withholding excluded as routine compensation noise.