Wedbush Comments on Zscaler, Inc.’s Q1 2025 Earnings (NASDAQ:ZS)

Zscaler, Inc. (NASDAQ:ZS) – Research analysts at Wedbush lowered their Q1 2025 earnings estimates for Zscaler in a research report issued to clients and investors on Wednesday, September 4th. Wedbush analyst D. Ives now anticipates that the company will post earnings per share of ($0.31) for the quarter, down from their prior forecast of ($0.01). Wedbush has a “Outperform” rating and a $220.00 price objective on the stock. The consensus estimate for Zscaler’s current full-year earnings is ($0.92) per share. Wedbush also issued estimates for Zscaler’s Q2 2025 earnings at ($0.26) EPS, Q3 2025 earnings at ($0.24) EPS, Q4 2025 earnings at ($0.23) EPS, FY2025 earnings at ($1.03) EPS, Q2 2026 earnings at ($0.14) EPS and Q4 2026 earnings at ($0.10) EPS.

Zscaler (NASDAQ:ZS) last issued its quarterly earnings data on Tuesday, September 3rd. The company reported $0.88 earnings per share for the quarter, topping analysts’ consensus estimates of $0.70 by $0.18. The business had revenue of $592.90 million for the quarter, compared to analyst estimates of $567.46 million. Zscaler had a negative return on equity of 3.75% and a negative net margin of 2.66%. Zscaler’s quarterly revenue was up 30.3% compared to the same quarter last year. During the same quarter in the previous year, the company posted ($0.17) EPS.

Several other research analysts also recently commented on ZS. Canaccord Genuity Group cut their target price on Zscaler from $260.00 to $220.00 and set a “buy” rating on the stock in a report on Tuesday, June 4th. Barclays reduced their target price on Zscaler from $230.00 to $200.00 and set an “overweight” rating on the stock in a report on Wednesday, September 4th. Wells Fargo & Company lowered their price target on shares of Zscaler from $182.00 to $180.00 and set an “equal weight” rating for the company in a report on Wednesday, September 4th. Raymond James initiated coverage on shares of Zscaler in a research report on Tuesday, July 23rd. They set a “market perform” rating for the company. Finally, Royal Bank of Canada restated an “outperform” rating and issued a $230.00 target price on shares of Zscaler in a report on Wednesday, September 4th. Nine analysts have rated the stock with a hold rating, twenty-four have assigned a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $218.39.

Zscaler Price Performance

Shares of NASDAQ:ZS opened at $155.90 on Monday. The company has a debt-to-equity ratio of 1.04, a quick ratio of 1.75 and a current ratio of 1.75. Zscaler has a 52 week low of $146.59 and a 52 week high of $259.61. The firm has a market cap of $23.56 billion, a PE ratio of -305.69 and a beta of 0.82. The firm’s fifty day moving average is $186.05 and its 200-day moving average is $186.01.

Institutional Investors Weigh In On Zscaler

Institutional investors have recently made changes to their positions in the stock. Quest Partners LLC bought a new stake in Zscaler during the 2nd quarter worth approximately $28,000. Jones Financial Companies Lllp bought a new position in shares of Zscaler in the fourth quarter worth $29,000. Quadrant Capital Group LLC raised its position in shares of Zscaler by 66.7% in the fourth quarter. Quadrant Capital Group LLC now owns 175 shares of the company’s stock worth $39,000 after buying an additional 70 shares in the last quarter. Asset Dedication LLC boosted its stake in Zscaler by 436.8% during the second quarter. Asset Dedication LLC now owns 204 shares of the company’s stock valued at $39,000 after buying an additional 166 shares during the period. Finally, American Capital Advisory LLC purchased a new position in Zscaler during the second quarter worth about $50,000. Hedge funds and other institutional investors own 46.45% of the company’s stock.

Insider Buying and Selling at Zscaler

In related news, CFO Remo Canessa sold 7,981 shares of the business’s stock in a transaction dated Thursday, June 20th. The stock was sold at an average price of $177.21, for a total value of $1,414,313.01. Following the sale, the chief financial officer now directly owns 243,486 shares in the company, valued at approximately $43,148,154.06. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. 19.20% of the stock is owned by corporate insiders.

Zscaler Company Profile

Zscaler, Inc operates as a cloud security company worldwide. The company offers Zscaler Internet Access solution that provides users, workloads, IoT, and OT devices secure access to externally managed applications, including software-as-a-service (SaaS) applications and internet destinations; and Zscaler Private Access solution, which is designed to provide access to managed applications hosted internally in data centers, and private or public clouds.