Why Zscaler Stock Is Surging On Tuesday?

by | May 26, 2026 | General

Zscaler, Inc. (NASDAQ:ZS) stock is trading higher on Tuesday morning. Investors are aggressively positioning themselves ahead of the cloud security company’s third-quarter fiscal 2026 earnings report, scheduled for release after the closing bell on Tuesday.

Wall Street Adjusts Forecasts

Several of the market’s most accurate analysts recently revised their forecasts. On May 21, Wells Fargo analyst Richard Poland, who holds a 63% accuracy rate, maintained an overweight rating and raised his price forecast from $200 to $210. Concurrently, Rosenblatt’s Catharine Trebnick maintained a buy rating and a $223 price forecast.

The positive momentum follows earlier optimism from B. Riley Securities analyst Erik Suppiger. On May 18, Suppiger upgraded ZS from neutral to buy, though he adjusted his price forecast from $275 to $225. Keybanc’s Eric Heath also maintained an overweight rating on May 18, lifting his price forecast from $160 to $190.

Historical Earnings Strength

Traders are driving the surge partly due to Zscaler’s track record; the San Jose, California-based company has beaten consensus earnings per share estimates for eight consecutive quarters. For the third quarter, Benzinga Pro data shows analysts expect earnings of $1.01 per share on revenue of $835.66 million.

Recent Acquisition News

Contextualizing the pre-earnings rally, Zscaler also announced its intent to acquire Symmetry Systems on May 21, further fueling investor interest alongside Friday’s closing gain of 6.6% at $182.37.

Zscaler Stock: Key Levels To Watch

From a trend perspective, Zscaler is extended above its shorter-term baselines: it’s trading 22.3% above its 20-day SMA ($154.89) and 30.6% above its 50-day SMA ($145.06).

The bigger-picture chart is still working through damage from earlier in the year: the stock remains 15.3% below its 200-day SMA ($223.66), and the death cross that formed in January (50-day falling below the 200-day) is still a longer-term headwind.

Key turning points also frame the current setup: the stock put in a swing low in April, which also marked the 52-week low. The shares are still down 26.46% over the past 12 months and well below the $336.99 52-week high (November 2025).

ZS Price Action: Zscaler shares were up 4.34% at $190.28 at the time of publication on Tuesday, according to Benzinga Pro data.

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