Zscaler (NASDAQ: ZS) Earnings Preview: Zero Trust, AI Security, and Fiscal 2027 Guidance in Focus

• Zscaler (NASDAQ: ZS) is set to report earnings with an EPS consensus of $1.09 and revenue estimate of $876.96 million.
• Investors are keenly awaiting fiscal 2027 guidance after a previous outlook led to a 31.52% stock drop.
• Growth is anticipated from demand for AI security, its Zero Trust platform, and strong Z-Flex deal bookings.

Zscaler (NASDAQ: ZS) is a cybersecurity company that provides cloud-based security services. It operates a platform that helps businesses secure their networks and data, a model known as "Zero Trust." The company competes in a strong sector against other key players like CrowdStrike (NASDAQ: CRWD) and Palo Alto Networks (NASDAQ: PANW), who have recently reported positive results.

Zscaler is scheduled to release its quarterly earnings report on September 3, 2026. Wall Street analysts have a consensus earnings per share (EPS) estimate of $1.09. The company's own guidance projects an EPS between $1.08 and $1.09. This aligns with the Zacks Consensus Estimate, which also stands at $1.09 per share.

For the same quarter, the consensus revenue estimate is $876.96 million. This figure is consistent with other projections, including the company's own forecast of $875 million to $878 million. The Zacks Consensus Estimate is similar at $877.10 million, which would represent about 22% growth from the previous year.

Investors are closely watching Zscaler's fiscal 2027 guidance. A previous outlook caused a significant 31.52% single-day stock drop in May, as highlighted by Benzinga. That guidance projected revenue growth of only 16%, which was lower than the mid-20% range investors were used to. The market is cautious about a potential repeat.

Despite recent investor caution, growth is expected from the demand for AI security and its Zero Trust platform. As noted in Anirudha Bhagat's analyst blog, Z-Flex deals are also a key driver. These bookings exceeded $480 million in the third quarter, showing a 60% increase from the prior quarter.