Zscaler Soars on Strong Earnings, Analyst Upgrades

Zscaler Inc. (NASDAQ:ZS) has reported impressive Q3 2026 financial results, with revenue reaching $850.48 million, marking a 25% year-over-year increase. The company's earnings per share for the quarter stood at $1.08, exceeding the Wall Street consensus estimate of $1.01. This strong performance has led Zscaler to raise its revenue guidance for the fourth quarter of 2026 to a range of $875 million to $878 million, with an expected earnings per share between $1.08 and $1.09.

Positive analyst sentiment supports Zscaler's outlook. On June 10, Robert W. Baird analyst Shrenik Kothari maintained a Buy rating with a price target of $230. Earlier, on June 1, Guggenheim upgraded the stock to Buy from Neutral, setting a target price of $214. Guggenheim specifically noted Zscaler's strong positioning in critical cloud security areas like SASE and SSE, anticipating continued revenue growth.

Founded in September 2007 and headquartered in San Jose, California, Zscaler provides a cloud-based internet security platform. While acknowledged for its potential, some market observers suggest other AI stocks may offer greater upside with less risk.