Scotiabank Issues Pessimistic Forecast for Zscaler (NASDAQ:ZS) Stock Price

Zscaler (NASDAQ:ZS) had its target price reduced by stock analysts at Scotiabank from $190.00 to $175.00 in a research note issued to investors on Wednesday,Benzinga reports. The brokerage presently has a “sector outperform” rating on the stock. Scotiabank’s price objective points to a potential downside of 5.20% from the company’s current price.

Other analysts also recently issued research reports about the stock. Truist Financial set a $200.00 target price on shares of Zscaler in a research report on Wednesday. Evercore set a $155.00 price objective on shares of Zscaler in a research note on Wednesday. Stephens set a $205.00 target price on shares of Zscaler in a research note on Wednesday. Oppenheimer decreased their price target on shares of Zscaler from $280.00 to $250.00 and set an “outperform” rating for the company in a research report on Tuesday, March 10th. Finally, Canaccord Genuity Group lowered their price target on Zscaler from $275.00 to $210.00 and set a “buy” rating for the company in a report on Wednesday. Two analysts have rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating, seven have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Zscaler presently has a consensus rating of “Moderate Buy” and a consensus price target of $234.91.

Zscaler Stock Up 1.2%

Shares of ZS opened at $184.60 on Wednesday. Zscaler has a fifty-two week low of $114.63 and a fifty-two week high of $336.99. The company’s fifty day moving average is $145.75 and its two-hundred day moving average is $192.65. The firm has a market cap of $29.68 billion, a PE ratio of -439.52 and a beta of 0.96. The company has a quick ratio of 1.90, a current ratio of 1.90 and a debt-to-equity ratio of 0.78.

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

Insiders Place Their Bets

In other Zscaler news, EVP Raj Judge sold 2,488 shares of Zscaler stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total value of $389,595.92. Following the completion of the transaction, the executive vice president owned 67,906 shares of the company’s stock, valued at $10,633,400.54. The trade was a 3.53% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, CEO Jagtar Singh Chaudhry sold 1,941 shares of the stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total transaction of $303,941.19. Following the sale, the chief executive officer directly owned 345,916 shares in the company, valued at $54,166,986.44. This trade represents a 0.56% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 12,130 shares of company stock valued at $1,892,487. 17.20% of the stock is owned by company insiders.

Institutional Investors Weigh In On Zscaler

Institutional investors and hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. boosted its stake in Zscaler by 0.5% in the fourth quarter. Vanguard Group Inc. now owns 11,423,424 shares of the company’s stock valued at $2,569,357,000 after acquiring an additional 55,521 shares during the period. Groupama Asset Managment raised its position in shares of Zscaler by 76,352.6% during the 3rd quarter. Groupama Asset Managment now owns 4,750,000 shares of the company’s stock worth $1,423,385,000 after purchasing an additional 4,743,787 shares during the period. First Trust Advisors LP lifted its holdings in shares of Zscaler by 36.2% in the 1st quarter. First Trust Advisors LP now owns 3,518,678 shares of the company’s stock worth $493,635,000 after purchasing an additional 935,781 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its position in 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 purchasing an additional 777,414 shares during the period. Finally, State Street Corp grew its stake in Zscaler by 3.4% during the 4th quarter. State Street Corp now owns 2,337,604 shares of the company’s stock worth $525,774,000 after buying an additional 77,800 shares during the last quarter. Institutional investors and hedge funds own 46.45% of the company’s stock.

Trending Headlines about 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)

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.