Zscaler (Zscaler (ZS)) shares are climbing Tuesday morning as traders pile in ahead of the cloud security company's third-quarter fiscal 2026 earnings report, due out after the closing bell. The stock was up 4.34% at $190.28 at the time of writing.

Wall Street Adjusts Forecasts

Several of the market's most accurate analysts have been revising their forecasts in recent days. On May 21, Wells Fargo analyst Richard Poland, who boasts a 63% accuracy rate, maintained an overweight rating and raised his price target from $200 to $210. Around the same time, Rosenblatt's Catharine Trebnick kept a buy rating and a $223 price target.

The positive momentum follows an upgrade from B. Riley Securities analyst Erik Suppiger on May 18. Suppiger moved Zscaler from neutral to buy, though he trimmed his price target from $275 to $225. KeyBanc's Eric Heath also maintained an overweight rating on the same day, lifting his target from $160 to $190.

Historical Earnings Strength

Part of the pre-earnings enthusiasm stems from Zscaler's track record. The San Jose-based company has beaten consensus earnings per share estimates for eight consecutive quarters. For the third quarter, analysts expect earnings of $1.01 per share on revenue of $835.66 million.

Recent Acquisition News

Adding fuel to the rally, Zscaler announced on May 21 its intent to acquire Symmetry Systems. That news, combined with a 6.6% gain on Friday, has helped build momentum heading into the earnings report.

Zscaler Stock: Key Levels To Watch

From a technical perspective, Zscaler is trading well above its short-term moving averages. The stock is 22.3% above its 20-day simple moving average of $154.89 and 30.6% above its 50-day SMA of $145.06. That's a sign of strong near-term momentum.

But the bigger picture is more complicated. The stock remains 15.3% below its 200-day SMA of $223.66, and the death cross that formed in January — when the 50-day fell below the 200-day — is still a lingering headwind. The shares hit a 52-week low in April and are still down 26.46% over the past 12 months, far below the $336.99 high from November 2025.

So while the pre-earnings pop is exciting, investors should keep an eye on those longer-term trends. The earnings report tonight could either confirm the rally or bring the stock back down to earth.