Zscaler is set to report fourth-quarter earnings on Sept. 3 after the market closes, and ZS stock has already moved higher in anticipation. Investors have been buying ahead of the release even after the shares fell 36% over the past 52 weeks.
That move matters because the report arrives at a point when traders want proof that the company can turn its AI pitch into durable growth. Zscaler, based in San Jose, California, has been leaning on AI as a major opportunity by expanding its Zero Trust Exchange to secure agentic AI, while also pushing deeper into the U.S. SMB and mid-market segments through a partnership with Carahsoft.
Zscaler is not a small name the market can ignore. The company has a market value of $28.84 billion and sits around a forward-adjusted price-to-earnings ratio of 43.16x, well above the industry average of 22.39x. For investors, that gap leaves little room for disappointment when the numbers and the outlook land after the closing bell.
What they will be watching is straightforward. In the third quarter of fiscal 2026, Zscaler said revenue rose 25% year over year to $850.48 million and annual recurring revenue climbed 25% to $3.53 billion, with $166 million in net new annual recurring revenue added in the period. The company also said customers with more than $100,000 in annual recurring revenue reached 4,003, up at a 16% compound annual growth rate, while customers above $1 million in annual recurring revenue rose to 748, up at an 18% compound annual growth rate.
That is the part that gives the stock its lift. Over the past month, the shares gained 14% and are now 50% above the April 52-week low of $114.63, even though they remain down more than 20% this year. The rebound shows how quickly sentiment can change when investors decide the setup before earnings looks better than the long-term chart.
But the chart still sits in the room. A stock that has lost 36% over 52 weeks has to do more than beat a number; it has to show that growth can stay strong while competition in cybersecurity stays intense and AI spending keeps moving from promise to revenue. Recent AI hacking incidents have only sharpened the case for security spending, and that makes the guidance on Sept. 3 the real test. If Zscaler can back up its AI story with a firm outlook, the next move in ZS stock could come from what management says about the year ahead, not just what it reports for the quarter just ended.
