Zscaler reported stronger-than-expected Q4 fiscal 2026 earnings and revenue, along with robust guidance for Q1 and full fiscal year 2027, surpassing analyst expectations. This positive performance led several analysts to increase their price targets for the company's stock.
Zscaler (ZS) delivered a significant beat on both Q4 fiscal 2026 revenue and adjusted earnings per share, exceeding consensus estimates. Furthermore, the company provided optimistic guidance for Q1 and the full fiscal year 2027, which also surpassed analyst forecasts. This strong financial performance and positive outlook are key catalysts, leading multiple analysts from firms like Needham, Stephens & Co., Barclays, and Scotiabank to raise their price targets, indicating increased confidence in the stock's future performance. While the stock initially fell 4.1% on Friday, likely due to profit-taking or broader market sentiment, the underlying financial results and analyst upgrades suggest a positive long-term outlook for Zscaler, particularly given its emphasis on AI opportunities. Traders should monitor if the stock can sustain its upward momentum following the initial dip, as the raised price targets imply significant upside potential.