Zscaler (NASDAQ:ZS) Shares Down 7.4% – What’s Next?

Posted by Brenda Bartman on Jun 4th, 2026

Zscaler, Inc. (NASDAQ:ZS – Get Free Report)’s share price was down 7.4% during trading on Tuesday . The stock traded as low as $143.75 and last traded at $144.1190. Approximately 10,304,777 shares traded hands during mid-day trading, an increase of 71% from the average daily volume of 6,040,175 shares. The stock had previously closed at $155.71.

Trending Headlines about Zscaler

Here are the key news stories impacting Zscaler this week:

Positive Sentiment: Several recent analyst notes remain constructive, including a Guggenheim upgrade to Buy with a $214 price target, while other firms continue to call Zscaler a buy or outperform idea. Why Is Zscaler (ZS) Stock Soaring Today
Positive Sentiment: Analysts still see upside in the stock, with recent coverage pointing to a consensus target well above the current share price and noting favorable earnings estimate revisions. Wall Street Analysts Think Zscaler (ZS) Could Surge 25.28%
Neutral Sentiment: Zscaler presented at the Bank of America Global Technology Conference, which may have helped keep the company in focus, but no major new catalyst was highlighted in the transcript summary provided. Zscaler Presents at Bank of America 2026 Global Technology Conference Transcript
Neutral Sentiment: Technical coverage noted that Zscaler recently broke above its 50-day moving average, suggesting some short-term momentum support. Zscaler Recently Broke Out Above the 50-Day Moving Average
Negative Sentiment: New shareholder investigations from law firms have raised legal overhang concerns, adding to investor caution around the stock. ZS Investors Have Opportunity to Join Zscaler, Inc. Fraud Investigation
Negative Sentiment: Options activity and ongoing analyst target cuts suggest traders are positioning cautiously after the earnings-related reset in expectations. Zscaler Target of Unusually High Options Trading

Wall Street Analysts Forecast Growth

Several analysts have recently commented on ZS shares. Stephens set a $205.00 target price on Zscaler in a research report on Wednesday, May 27th. BMO Capital Markets decreased their target price on Zscaler from $210.00 to $178.00 and set an “outperform” rating for the company in a research report on Wednesday, May 27th. Zacks Research raised Zscaler from a “strong sell” rating to a “hold” rating in a research report on Wednesday, May 27th. Stifel Nicolaus decreased their target price on Zscaler from $180.00 to $175.00 and set a “buy” rating for the company in a research report on Wednesday, May 27th. Finally, KeyCorp raised their target price on Zscaler from $160.00 to $190.00 and gave the stock an “overweight” rating in a research report on Monday, May 18th. Thirty-three research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Zscaler currently has a consensus rating of “Moderate Buy” and an average price target of $216.03.

Read Our Latest Research Report on ZS

Zscaler Trading Down 6.8%

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 fifty day moving average of $143.87 and a 200-day moving average of $184.95. The firm has a market capitalization of $21.73 billion, a PE ratio of -279.93 and a beta of 0.97.

Zscaler (NASDAQ:ZS – Get Free Report) last announced its quarterly earnings data on Tuesday, May 26th. The company reported $1.08 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.01 by $0.07. Zscaler had a negative return on equity of 0.37% and a negative net margin of 2.44%.The business had revenue of $850.48 million during the quarter, compared to analyst estimates of $835.14 million. During the same period last year, the company earned $0.84 earnings per share. Zscaler’s quarterly revenue was up 25.4% compared to the same quarter last year. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. On average, sell-side analysts anticipate that Zscaler, Inc. will post -0.03 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Zscaler news, Director James A. Beer sold 177 shares of the business’s stock in a transaction dated Wednesday, March 18th. The stock was sold at an average price of $153.53, for a total value of $27,174.81. Following the completion of the sale, the director owned 4,384 shares of the company’s stock, valued at $673,075.52. The trade was a 3.88% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Raj Judge sold 2,488 shares of the business’s stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total value of $389,595.92. Following the completion of the sale, the executive vice president directly owned 67,906 shares of the company’s stock, valued at $10,633,400.54. This represents a 3.53% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 12,130 shares of company stock valued at $1,892,487. 17.20% of the stock is owned by corporate insiders.

Institutional Trading of Zscaler

A number of institutional investors and hedge funds have recently made changes to their positions in ZS. Binnacle Investments Inc acquired a new stake in shares of Zscaler in the third quarter worth about $25,000. AlphaCentric Advisors LLC acquired a new stake in shares of Zscaler in the fourth quarter worth about $29,000. Picton Mahoney Asset Management acquired a new stake in shares of Zscaler in the third quarter worth about $30,000. University of Texas Texas AM Investment Management Co. acquired a new stake in shares of Zscaler in the fourth quarter worth about $30,000. Finally, Mcguire Capital Advisors Inc. acquired a new stake in shares of Zscaler in the fourth quarter worth about $32,000. Institutional investors and hedge funds own 46.45% of the company’s stock.

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.