Zscaler (NASDAQ:ZS) Price Target Raised to $225.00 at Stephens

Zscaler (NASDAQ:ZS) had its target price increased by stock analysts at Stephens from $200.00 to $225.00 in a report issued on Friday, Benzinga reports. The firm currently has an “overweight” rating on the stock. Stephens’ price target would suggest a potential upside of 26.55% from the stock’s current price.

Other equities research analysts also recently issued reports about the stock. Jefferies Financial Group reissued a “buy” rating and issued a $220.00 price target on shares of Zscaler in a report on Wednesday. Sanford C. Bernstein cut their price target on shares of Zscaler from $228.00 to $224.00 and set an “outperform” rating for the company in a report on Wednesday, May 27th. Robert W. Baird reduced their price target on shares of Zscaler from $265.00 to $230.00 and set an “outperform” rating for the company in a research report on Wednesday, May 27th. Mizuho upped their price target on shares of Zscaler from $185.00 to $210.00 and gave the stock an “outperform” rating in a report on Wednesday, August 19th. Finally, Rosenblatt Securities reiterated a “buy” rating and issued a $200.00 price objective on shares of Zscaler in a research report on Friday. Thirty-four equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $215.54.

Zscaler Trading Up 2.9%

NASDAQ:ZS opened at $177.80 on Friday. Zscaler has a 1 year low of $114.63 and a 1 year high of $336.99. The stock’s fifty day moving average price is $160.51 and its two-hundred day moving average price is $150.39. The company has a debt-to-equity ratio of 0.72, a current ratio of 1.86 and a quick ratio of 1.86. The company has a market cap of $28.75 billion, a P/E ratio of -370.41, a P/E/G ratio of 101.67 and a beta of 0.95.

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

Insider Activity at Zscaler

In other news, CEO Jagtar Chaudhry sold 2,878 shares of the stock in a transaction 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 transaction, the chief executive officer owned 343,038 shares of the company’s stock, valued at $43,370,294.34. This represents a 0.83% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Robert Schlossman sold 3,146 shares of the firm’s stock in a transaction 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 in the company, valued at approximately $8,769,943.38. This trade represents a 4.34% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders sold 16,772 shares of company stock valued at $2,139,799. Company insiders own 17.20% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. California State Teachers Retirement System raised its position in Zscaler by 13,837.9% during the second quarter. California State Teachers Retirement System now owns 19,388,787 shares of the company’s stock valued at $2,736,727,000 after purchasing an additional 19,249,679 shares in the last quarter. BlackRock Inc. bought a new position in shares of Zscaler during the 2nd quarter valued at about $1,396,028,000. First Trust Advisors LP increased its position in shares of Zscaler by 36.2% during the 1st quarter. First Trust Advisors LP now owns 3,518,678 shares of the company’s stock valued at $493,635,000 after purchasing an additional 935,781 shares during the last quarter. Price T Rowe Associates Inc. MD raised its holdings in shares of Zscaler by 43.3% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 2,572,358 shares of the company’s stock valued at $578,576,000 after buying an additional 777,414 shares in the last quarter. Finally, AQR Capital Management LLC raised its holdings in shares of Zscaler by 61.8% during the 3rd quarter. AQR Capital Management LLC now owns 1,941,571 shares of the company’s stock valued at $576,083,000 after buying an additional 741,756 shares in the last quarter. Institutional investors own 46.45% of the company’s stock.

Zscaler News Summary

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler reported fiscal Q4 revenue of $898.2 million, up 24.9% year over year and above the $877.0 million consensus estimate. Adjusted EPS of $1.19 also exceeded expectations of $1.09. Zscaler Q4 Earnings and Revenues Top Estimates
• Positive Sentiment: Annual recurring revenue increased 25% to $3.77 billion, while non-GAAP operating margin reached a record 24%. Management cited demand for AI-powered security, large deals, non-seat-based products and its Agentic SecOps offering as growth drivers. Zscaler stock soars on earnings beat, upbeat guidance
• Positive Sentiment: Fiscal Q1 2027 guidance was ahead of analyst expectations, with revenue of $935 million to $939 million and adjusted EPS of $1.15 to $1.16 versus consensus estimates of $925.5 million and $0.86, respectively. Full-year adjusted EPS guidance of $4.86 to $4.90 also exceeded the $3.70 consensus. Zscaler Announces Strong Fourth Quarter and Fiscal 2026 Financial Results
• Neutral Sentiment: Zscaler is restructuring and eliminating approximately 3% of its workforce to redirect resources toward AI and other strategic initiatives. The move could improve efficiency but introduces execution and morale risks. Zscaler forecasts FY2027 growth as it restructures
• Negative Sentiment: Fiscal 2027 revenue and ARR growth are expected to slow to roughly 17%, compared with 25% in fiscal 2026. Excluding the Red Canary acquisition, fiscal 2026 revenue growth was already 20%, intensifying concerns about deceleration. Zscaler Issued New Guidance
• Negative Sentiment: Despite strong adjusted profitability, Zscaler still posted a $3.4 million GAAP quarterly loss and a $63.2 million full-year loss. Fourth-quarter free-cash-flow margin fell to 7% from 24% because of substantially higher capital expenditures. Zscaler Loss Narrows As Revenue Soars

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.