Zscaler (NASDAQ:ZS) Earns Buy Rating from Canaccord Genuity Group

Zscaler (NASDAQ:ZS)‘s stock had its “buy” rating reiterated by Canaccord Genuity Group in a research note issued on Friday, Benzinga reports. They currently have a $210.00 price target on the stock. Canaccord Genuity Group’s target price suggests a potential upside of 23.12% from the company’s previous close.

A number of other research firms have also weighed in on ZS. BTIG Research reissued a “neutral” rating on shares of Zscaler in a research note on Friday. Rosenblatt Securities reaffirmed a “buy” rating and issued a $200.00 price target on shares of Zscaler in a report on Friday. Citigroup reiterated a “market outperform” rating on shares of Zscaler in a research report on Wednesday, May 27th. Guggenheim reissued a “buy” rating and set a $214.00 price objective on shares of Zscaler in a research note on Friday. Finally, UBS Group dropped their target price on Zscaler from $260.00 to $225.00 and set a “buy” rating for the company in a report on Wednesday, May 27th. Thirty-four analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $216.44.

Zscaler Price Performance

Zscaler stock opened at $170.56 on Friday. The company has a fifty day simple moving average of $160.51 and a 200-day simple moving average of $150.39. The company has a quick ratio of 1.86, a current ratio of 1.86 and a debt-to-equity ratio of 0.72. The firm has a market capitalization of $27.58 billion, a price-to-earnings ratio of -347.82, a PEG ratio of 101.67 and a beta of 0.95. Zscaler has a 52-week low of $114.63 and a 52-week high of $336.99.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings results on Thursday, September 3rd. The company reported $1.19 earnings per share for the quarter, topping analysts’ consensus estimates of $1.09 by $0.10. Zscaler had a negative net margin of 2.44% and a negative return on equity of 0.37%. The firm had revenue of $898.18 million for the quarter, compared to analyst estimates of $876.96 million. During the same period in the previous year, the business posted $0.89 earnings per share. Zscaler’s quarterly revenue was up 24.9% on a year-over-year basis. Zscaler has set its FY 2027 guidance at 4.860-4.900 EPS and its Q1 2027 guidance at 1.150-1.160 EPS. On average, equities analysts anticipate that Zscaler will post 0.13 EPS for the current fiscal year.

Insider Activity

In other news, insider Robert Schlossman sold 3,146 shares of Zscaler stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $126.43, for a total transaction of $397,748.78. Following the sale, the insider owned 69,366 shares of the company’s stock, valued at approximately $8,769,943.38. The trade was a 4.34% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Jagtar Chaudhry sold 2,878 shares of the company’s stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $126.43, for a total value of $363,865.54. Following the completion of the transaction, the chief executive officer owned 343,038 shares in the company, valued at $43,370,294.34. This represents a 0.83% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 16,772 shares of company stock worth $2,139,799 over the last quarter. 17.20% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Zscaler

Large investors have recently modified their holdings of the business. Kentucky Retirement Systems Insurance Trust Fund grew its holdings in shares of Zscaler by 1.4% during the 3rd quarter. Kentucky Retirement Systems Insurance Trust Fund now owns 2,569 shares of the company’s stock worth $770,000 after purchasing an additional 36 shares during the period. Parallel Advisors LLC raised its holdings in Zscaler by 10.9% in the 3rd quarter. Parallel Advisors LLC now owns 397 shares of the company’s stock valued at $119,000 after buying an additional 39 shares during the period. Smartleaf Asset Management LLC raised its holdings in Zscaler by 7.5% in the 2nd quarter. Smartleaf Asset Management LLC now owns 648 shares of the company’s stock valued at $204,000 after buying an additional 45 shares during the period. Larson Financial Group LLC lifted its position in Zscaler by 2.6% in the third quarter. Larson Financial Group LLC now owns 2,040 shares of the company’s stock valued at $611,000 after buying an additional 52 shares during the last quarter. Finally, Crossmark Global Holdings Inc. lifted its position in Zscaler by 6.1% in the third quarter. Crossmark Global Holdings Inc. now owns 976 shares of the company’s stock valued at $292,000 after buying an additional 56 shares during the last quarter. Institutional investors and hedge funds own 46.45% of the company’s stock.

Zscaler News Roundup

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Results exceeded expectations. Zscaler reported fiscal Q4 revenue of $898.2 million, up 24.9% year over year and above the $877.0 million consensus estimate. Non-GAAP earnings of $1.19 per share also topped expectations of $1.09. Zscaler Q4 Earnings and Revenues Top Estimates
• Positive Sentiment: Profitability and enterprise demand improved. Q4 non-GAAP operating margin reached a record 24%, while annual recurring revenue rose 25% to $3.77 billion. Large-deal activity increased, Fortune 500 penetration reached 50%, and net retention was 115%, supporting continued customer expansion. Zscaler Announces Strong Fourth Quarter and Fiscal 2026 Financial Results
• Positive Sentiment: Analysts raised targets. Stephens increased its target to $225 and Needham raised its target to $215; Cantor Fitzgerald maintained an overweight rating and a $225 target, while Rosenblatt reiterated buy with a $200 target.
• Neutral Sentiment: AI remains a growth opportunity. Management highlighted momentum for Agentic SecOps and security products designed for AI workloads, but investors are awaiting evidence that these offerings can reaccelerate growth.
• Negative Sentiment: Fiscal 2027 growth is expected to slow. Zscaler forecast revenue growth of 16.6%-17.5% and ARR growth of 16.6%-17.4%, down from 25% in fiscal 2026. This deceleration overshadowed the better-than-expected quarterly results, particularly because full-year revenue guidance was broadly in line with consensus. Zscaler Forecasts Fiscal 2027 Growth
• Negative Sentiment: Restructuring and cash-flow concerns add pressure. The company plans to eliminate about 3% of its workforce as it reallocates resources toward AI and growth initiatives. Q4 free-cash-flow margin fell to 7% from 24% a year earlier because of significantly higher capital spending, while Zscaler remains GAAP unprofitable.
• Negative Sentiment: Some investors question the valuation case. Although ZS trades at a historically lower forward multiple, analysts note that its projected growth lacks the acceleration seen at some AI-focused cybersecurity peers.

Zscaler Company Profile

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.