Zscaler Stock Outlook: Could Q3 Earnings Trigger a Bullish Rally?

Zscaler’s upcoming Q3 earnings report on Tuesday, 25 November 2025 has sparked growing interest among traders and investors. With expectations pointing towards improved earnings and bullish technical indicators, Zscaler (ZS) may be preparing for an upward move—though not without some cautionary signs.

Earnings Forecast: Potential for a Strong Report

Analysts are forecasting a 2025 EPS of $0.05, an increase of 25% from last year’s EPS of $0.04. This suggests Zscaler may deliver a stronger-than-expected earnings report, creating the conditions for a possible bullish rally.

However, Zscaler’s share price has already surged 30.70%, rising from $214.49 in 2024 to $280.33 in 2025. This significant appreciation may indicate that the stock is slightly overvalued, meaning some of the potential post-earnings upside may already be priced in.

Technical Analysis: Indicators Favour a Bullish Move

From a technical standpoint, Zscaler appears primed for further bullish momentum:

• RSI Oversold Signal: On Friday, 21 November, Zscaler was identified as possibly oversold with an RSI of 29, which can often precede a price rebound.
• Bollinger Band Rebound: The share price has recently bounced off the lower Bollinger band, suggesting renewed upward momentum.
• Fibonacci Support: A bullish bounce was also observed at the Fibonacci support level of $267.28.

If momentum continues, traders may look towards key resistance levels at:

• $293.87
• $336.86

On the downside, Zscaler holds support levels at:

• $245.78
• $224.29 (below that level)

These zones will be important for determining future price direction, particularly following the earnings release.

Fundamental Analysis: Risks and Long-Term Potential

Fundamentally, Zscaler presents a mixed picture:

• The company currently has negative earnings, meaning it does not carry a traditional P/E ratio—something that can raise concerns for value-focused investors.
• However, Zscaler has a forward P/E of 63.75, indicating that analysts expect substantial future earnings growth.
• Analysts maintain a price target of $333.21, representing an upside of 21.16% from current levels.

This combination suggests that despite its current lack of profitability, Zscaler may still hold strong long-term potential.

Outlook for Traders and Investors

Overall, Zscaler could offer a compelling opportunity for traders and investors seeking exposure to a potential bullish earnings reaction. Technical indicators indicate strengthening momentum, while earnings forecasts and analyst sentiment remain positive.

That said, concerns surrounding negative current earnings may prompt some investors to wait for clearer confirmation. Many may prefer to monitor:

• The earnings release,
• Post-announcement price action, and
• Breaks above or below key support/resistance levels.

With well-defined technical levels and improving forecasts, traders should have clear potential entry and exit points once the earnings results are published.