Zscaler (NASDAQ:ZS – Free Report) had its target price trimmed by Royal Bank Of Canada from $250.00 to $205.00 in a report published on Friday morning,Benzinga reports. They currently have an outperform rating on the stock.
A number of other brokerages also recently weighed in on ZS. Piper Sandler decreased their price target on Zscaler from $260.00 to $185.00 and set a “neutral” rating for the company in a report on Friday. Cantor Fitzgerald lowered their target price on Zscaler from $365.00 to $300.00 and set an “overweight” rating for the company in a report on Tuesday, February 24th. Robert W. Baird cut their price target on Zscaler from $360.00 to $300.00 and set an “outperform” rating on the stock in a report on Monday, February 23rd. Morgan Stanley lowered their price objective on shares of Zscaler from $305.00 to $200.00 and set an “overweight” rating for the company in a research note on Friday. Finally, KeyCorp dropped their target price on shares of Zscaler from $300.00 to $250.00 and set an “overweight” rating on the stock in a research report on Tuesday, February 17th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, six have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $274.37.
Check Out Our Latest Stock Analysis on Zscaler
Zscaler Price Performance
Zscaler stock opened at $146.99 on Friday. The stock’s 50 day moving average is $198.92 and its 200 day moving average is $254.90. Zscaler has a one year low of $140.56 and a one year high of $336.99. The firm has a market cap of $23.44 billion, a P/E ratio of -349.98, a P/E/G ratio of 217.30 and a beta of 1.07. The company has a debt-to-equity ratio of 0.78, a current ratio of 1.90 and a quick ratio of 1.90.
Zscaler (NASDAQ:ZS – Get Free Report) last released its quarterly earnings results on Thursday, February 26th. The company reported $1.01 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.89 by $0.12. Zscaler had a negative net margin of 2.25% and a positive return on equity of 0.06%. The firm had revenue of $815.75 million during the quarter, compared to analyst estimates of $798.92 million. During the same quarter last year, the business earned $0.78 EPS. The company’s revenue was up 25.9% compared to the same quarter last year. Zscaler has set its Q3 2026 guidance at 1.000-1.010 EPS and its FY 2026 guidance at 3.990-4.020 EPS. As a group, research analysts expect that Zscaler will post -0.1 EPS for the current year.
Insider Buying and Selling at Zscaler
In other Zscaler news, insider Adam Geller sold 1,620 shares of Zscaler stock in a transaction on Wednesday, December 17th. The stock was sold at an average price of $232.79, for a total value of $377,119.80. Following the completion of the sale, the insider owned 50,528 shares of the company’s stock, valued at approximately $11,762,413.12. This trade represents a 3.11% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Raj Judge sold 3,438 shares of the company’s stock in a transaction on Tuesday, December 16th. The shares were sold at an average price of $230.82, for a total value of $793,559.16. Following the transaction, the executive vice president directly owned 70,394 shares in the company, valued at approximately $16,248,343.08. The trade was a 4.66% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 19,350 shares of company stock worth $4,471,509 in the last 90 days. Insiders own 17.20% of the company’s stock.
Institutional Investors Weigh In On Zscaler
A number of hedge funds have recently added to or reduced their stakes in ZS. Binnacle Investments Inc purchased a new stake in Zscaler during the third quarter valued at $25,000. Tradewinds Capital Management LLC lifted its stake in shares of Zscaler by 145.7% in the 3rd quarter. Tradewinds Capital Management LLC now owns 86 shares of the company’s stock worth $26,000 after purchasing an additional 51 shares during the period. Root Financial Partners LLC purchased a new position in shares of Zscaler in the third quarter worth approximately $26,000. McIlrath & Eck LLC bought a new stake in Zscaler during the third quarter valued at approximately $29,000. Finally, Picton Mahoney Asset Management purchased a new position in shares of Zscaler during the 3rd quarter worth $30,000. 46.45% of the stock is currently owned by hedge funds and other institutional investors.
Trending Headlines about Zscaler
Here are the key news stories impacting Zscaler this week:
- Positive Sentiment: Q2 results beat: adjusted EPS $1.01 vs. $0.89 est., revenue $815.8M vs. ~$799M est., and ARR grew ~25% year/year — signals demand momentum. GlobeNewswire: Q2 Results
- Positive Sentiment: Management is pitching AI security growth and new initiatives (AI Guard, agentic security, India AI/Cyber center with Airtel) as durable secular drivers that expand TAM beyond seat-based SaaS. CFO Interview Airtel AI Center
- Neutral Sentiment: Management issued updated forward guidance and commentary (Q3 EPS range and FY EPS range were provided), creating mixed signals that markets are parsing. Earnings Highlights
- Neutral Sentiment: Executives (CEO & CFO) gave interviews and the full call transcript is available — useful for investors wanting detail on churn, acquisitions and how AI monetization will scale. Earnings Call Transcript
- Negative Sentiment: Wider GAAP loss and higher spending: the company posted a larger net loss driven by increased sales, marketing and R&D, which pressured investor sentiment. Reuters: Wider Loss
- Negative Sentiment: Mixed/uncertain revenue outlook commentary: some outlets reported the company lowered aspects of its revenue outlook, creating confusion and weighing on the stock despite EPS beats. Benzinga: Revenue Guidance Report
- Negative Sentiment: Broad analyst price‑target cuts today from multiple firms (Canaccord, Morgan Stanley, Oppenheimer, Berenberg, Needham, and others) have amplified selling pressure even as many kept “buy/outperform” stances — the cuts compress perception of near‑term upside. MarketScreener: Analyst Cuts
- Negative Sentiment: Market reaction: investors appear to be focusing on margin/expense trajectory, competitive pressure and near-term revenue clarity rather than the company’s AI growth story — producing the stock decline. Seeking Alpha: Market Reaction
About Zscaler
(Get Free Report)
Zscaler is a cloud security company that delivers a cloud-native platform to protect users, applications and data as organizations move away from traditional, network-centric security architectures. The company focuses on a zero trust approach that assumes no implicit trust for users or devices, providing secure access to the internet, SaaS applications and private applications regardless of where users are located. Zscaler positions its services as an alternative to legacy appliances and site-centric VPNs, aiming to simplify security while enabling modern, distributed workforces.
Key offerings are built around the Zscaler Zero Trust Exchange, a multi-tenant cloud platform that enforces security and access policies in-line.
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