After-Hours Earnings Report for September 2, 2025 : ZS, HQY

Zscaler (ZS) and HealthEquity (HQY) are scheduled to report Q3 2025 earnings after hours. ZS is forecast to post a consensus EPS of $-0.02, representing a 60% year-over-year increase, though its 2025 P/E ratio of -9235.00 significantly underperforms the industry's -1689.70. HQY is projected to report $0.75 EPS, a 13.64% year-over-year increase, with its 2026 P/E of 28.82 implying higher earnings growth relative to its industry's 0.70, building on a consistent track record of exceeding analyst expectations.

Analysis

Zscaler, Inc. (ZS) and HealthEquity, Inc. (HQY) present contrasting pre-earnings profiles ahead of their reports for the quarter ending July 31, 2025. For Zscaler, analysts forecast a consensus EPS of $-0.02, which represents a significant 60% year-over-year improvement by narrowing its loss. This positive operational trend is further supported by a strong track record of meeting or beating analyst estimates in all four of the past four quarters. However, its valuation appears stretched, with a 2025 Price to Earnings ratio of -9235.00, substantially more negative than the industry average of -1689.70, signaling high market expectations for future growth despite current unprofitability. Conversely, HealthEquity is projected to report a profitable EPS of $0.75, a 13.64% increase from the prior year. HQY has demonstrated exceptional consistency, having beaten earnings expectations in every quarter over the past year, including one beat of 35.48%. Its forward 2026 P/E ratio of 28.82, while significantly higher than the industry's 0.70, is interpreted as the market pricing in superior earnings growth relative to its competitors.

Key Decisions for Investors

• For Zscaler (ZS), investors should weigh its consistent history of beating earnings estimates against its extremely high negative P/E ratio, as the stock may be highly sensitive to any forward guidance that fails to justify its premium valuation.
• For HealthEquity (HQY), the key consideration is whether the company can continue its streak of substantial earnings beats to support its high forward P/E ratio, as meeting consensus may not be sufficient to satisfy elevated market expectations.
• Given the divergent fundamentals, traders might consider a pairs trade framework, anticipating that HQY's proven profitability provides a stronger foundation compared to ZS's reliance on future growth to validate its current market price.