These Analysts Boost Their Forecasts On Zscaler
Key takeaways
- Zscaler’s upgraded outlook and analyst target hikes signal stronger growth prospects, nudging the stock higher.
- Q1 revenue guidance: $935‑$939 million
- Q1 YoY growth: 19%
- Consensus Q1 revenue estimate: $927.024 million
What happened
Zscaler, Inc. (NASDAQ: ZS) reaffirmed its first‑quarter and fiscal 2027 outlook at Investor Day, projecting Q1 revenue of $935‑$939 million (≈19% YoY) and FY2027 revenue of $3.908‑$3.938 billion (≈16.6‑17.5% YoY). Non‑GAAP earnings were lifted to $1.15‑$1.16 per share for Q1 and $4.86‑$4.90 per share for FY2027, both above consensus estimates. The company also announced a partnership with IBM and Red Hat, and analysts across the board raised price targets, with the highest lift from Needham…
Why it matters
The upgraded guidance signals stronger demand for Zscaler’s cloud security platform, boosting investor confidence and supporting a higher valuation multiple. Analyst target hikes reflect a consensus that the company’s growth trajectory is robust, potentially driving a rally in the stock. The IBM‑Red Hat collaboration…
Short-term and longer-term
Short-term. In the next 24–48 hours, Zscaler shares could react to the upgraded guidance and analyst lifts, potentially testing the $215–$255 target range.
Longer-term. Over the coming months, the upgraded FY2027 guidance and partnership with IBM/Red Hat suggest sustained revenue growth, which could justify a higher valuation multiple for long‑term investors.