Zscaler (NASDAQ:ZS) Price Target Cut to $215.00 by Analysts at B. Riley Financial

Zscaler (NASDAQ:ZS) had its price target decreased by equities researchers at B. Riley Financial from $225.00 to $215.00 in a research report issued on Wednesday,MarketScreener reports. The brokerage presently has a “buy” rating on the stock. B. Riley Financial’s target price suggests a potential upside of 59.57% from the stock’s current price.

ZS has been the topic of several other research reports. Oppenheimer decreased their price target on Zscaler from $280.00 to $250.00 and set an “outperform” rating on the stock in a research note on Tuesday, March 10th. Wells Fargo & Company initiated coverage on shares of Zscaler in a report on Tuesday, March 3rd. They issued an “overweight” rating and a $200.00 price objective on the stock. Needham & Company LLC reaffirmed a “buy” rating and issued a $180.00 target price on shares of Zscaler in a research report on Wednesday. BTIG Research reiterated a “neutral” rating on shares of Zscaler in a research report on Thursday, April 9th. Finally, Stephens set a $205.00 price target on shares of Zscaler in a research note on Wednesday. Two research analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating, seven have given a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, Zscaler currently has a consensus rating of “Moderate Buy” and a consensus target price of $229.36.

Zscaler Trading Down 27.0%

Shares of ZS opened at $134.74 on Wednesday. Zscaler has a 12-month low of $114.63 and a 12-month high of $336.99. The firm has a market capitalization of $21.66 billion, a P/E ratio of -318.90 and a beta of 0.96. The firm has a 50-day moving average price of $145.75 and a 200 day moving average price of $192.65. The company has a current ratio of 1.90, a quick ratio of 1.90 and a debt-to-equity ratio of 0.78.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share for the quarter, beating the consensus estimate of $1.01 by $0.07. The business had revenue of $850.48 million during the quarter, compared to analysts’ expectations of $835.60 million. Zscaler had a negative net margin of 2.25% and a positive return on equity of 0.06%. The business’s revenue for the quarter was up 25.4% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.84 EPS. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. Sell-side analysts forecast that Zscaler will post -0.03 EPS for the current year.

Insider Buying and Selling at Zscaler

In other Zscaler news, CFO Kevin Rubin sold 1,682 shares of the business’s stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total value of $263,384.38. Following the completion of the sale, the chief financial officer owned 46,479 shares in the company, valued at approximately $7,278,146.61. The trade was a 3.49% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Adam Geller sold 2,094 shares of the firm’s stock in a transaction that occurred on Wednesday, March 18th. The stock was sold at an average price of $153.53, for a total transaction of $321,491.82. Following the transaction, the insider owned 46,949 shares in the company, valued at approximately $7,208,079.97. This trade represents a 4.27% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 12,130 shares of company stock worth $1,892,487. 17.20% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Westpac Banking Corp boosted its holdings in Zscaler by 919.0% in the 3rd quarter. Westpac Banking Corp now owns 9,986 shares of the company’s stock valued at $2,992,000 after purchasing an additional 9,006 shares in the last quarter. Korea Investment CORP raised its stake in shares of Zscaler by 24.0% during the 3rd quarter. Korea Investment CORP now owns 98,370 shares of the company’s stock worth $29,478,000 after buying an additional 19,026 shares during the last quarter. Vinva Investment Management Ltd raised its position in Zscaler by 136.1% during the third quarter. Vinva Investment Management Ltd now owns 11,347 shares of the company’s stock worth $3,400,000 after acquiring an additional 6,541 shares during the last quarter. Oxbow Advisors LLC acquired a new position in shares of Zscaler during the 4th quarter worth approximately $2,939,000. Finally, Handelsbanken Fonder AB lifted its position in shares of Zscaler by 43.1% in the third quarter. Handelsbanken Fonder AB now owns 55,907 shares of the company’s stock valued at $16,753,000 after acquiring an additional 16,839 shares in the last quarter. 46.45% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler reported fiscal Q3 revenue of $850.5 million and EPS of $1.08, both above estimates, while revenue rose 25% year over year and ARR also grew 25%, reinforcing the company’s strong core demand. Article: Zscaler Announces Strong Third-Quarter Fiscal 2026 Results
• Positive Sentiment: Management raised FY26 guidance and pointed to strength in AI security and record margins, which supports the long-term growth narrative for the cybersecurity platform. Article: ZS Q3 Earnings Call Flags Prudent Growth Outlook
• Positive Sentiment: Several analysts still view the stock favorably despite trimming targets, with Rosenblatt, Bernstein, Baird, and Needham maintaining bullish or buy-equivalent ratings, suggesting Wall Street still sees upside from current levels. Article: Analyst target updates
• Neutral Sentiment: New commentary on Zscaler’s AI security strategy and product expansion adds to the growth story, but also notes the stock may still need stronger execution to justify its valuation. Article: As Zscaler Doubles Down on AI Security, ZS Stock Still Needs More to Justify Its Steep Valuation
• Negative Sentiment: Despite the beat, Zscaler’s guidance disappointed traders: the company forecast fourth-quarter revenue slightly below estimates, and Reuters said the outlook reflected intensifying competition in cybersecurity and more cautious enterprise spending. Article: Zscaler sees downbeat quarterly revenue as competition heats up in cybersecurity market
• Negative Sentiment: Some recent analyst notes turned more cautious, including a Seeking Alpha downgrade citing slowing organic growth, weaker net-new ARR momentum, and competitive pressure from integrated security platforms. Article: Zscaler Q1: I Was Right (Rating Downgrade)

About Zscaler

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.