Zscaler Analysts Slash Their Forecasts After Q2 Results

Core Viewpoint - Zscaler Inc. reported better-than-expected second-quarter financial results but reduced its fiscal year 2026 sales guidance, leading to a significant drop in share price [1][2]. Financial Performance - The company reported quarterly earnings of $1.01 per share, surpassing the analyst consensus estimate of $0.90 [1]. - Quarterly revenue reached $815.75 million, exceeding the analyst consensus estimate of $798.82 million [1]. Guidance Update - Zscaler raised its fiscal 2026 adjusted EPS from $3.99 to $4.02, compared to the previous estimate of $3.81 [2]. - The revenue outlook for fiscal 2026 was lowered to a range of $3.31 billion to $3.32 billion, slightly above the previous estimate of $3.3 billion [2]. Market Reaction - Following the earnings announcement, Zscaler shares fell by 13.4%, trading at $144.97 in pre-market [2]. Analyst Ratings and Price Targets - Needham analyst Mike Cikos maintained a Buy rating but lowered the price target from $310 to $180 [4]. - Piper Sandler analyst Rob Owens maintained a Neutral rating and reduced the price target from $260 to $185 [4]. - Citizens analyst Trevor Walsh maintained a Market Outperform rating while lowering the price target from $355 to $290 [4].