Dear Zscaler Stock Fans, Mark Your Calendars for September 3
Zscaler (ZS) reported Q3 fiscal 2026 revenue of $850.48M, up 25% YOY, with ARR growing 25% to $3.53B. Non-GAAP EPS rose to $1.08. Analysts raised price targets, with a consensus 'Strong Buy' rating. The stock trades at a higher P/E ratio than industry average.
How this was made
The 30-second read
Why it matters
The earnings beat and raised guidance support a bullish outlook, but high valuation may limit upside.
Market read
Zscaler's strong Q3 results and upgraded guidance could lift the broader cybersecurity sector.
What to watch
Excluding the Red Canary acquisition, organic ARR growth is lower, which could temper expectations.
Background
Zscaler is a leading cloud security provider; its earnings are closely watched by security and cloud investors.
Ticker impact
Zscaler reported Q3 FY2026 results with 25% revenue growth to $850.48M and raised FY2026 guidance, a fresh earnings disclosure.
Potential price rally of 5-10% over the next few days.
Revenue and ARR beat expectations; analysts upgraded price targets, indicating bullish sentiment.
Market effects
Cloud security sector may see broader strength as Zscaler's growth validates demand.
U.S. tech equities could benefit from the upbeat earnings.
International security vendors may experience spillover interest.
Counterpoint
Valuation remains high (P/E 43x) and growth may slow, suggesting caution.
Key entities
- CompanyZscaler
Cloud security platform provider.
- AnalystJPMorgan
Maintained Overweight, raised price target to $215.
