BTIG Research reiterated their neutral rating on shares of Zscaler (NASDAQ:ZS – Free Report) in a research note issued to investors on Friday,Benzinga reports.
A number of other equities research analysts have also weighed in on ZS. Guggenheim reissued a “buy” rating and issued a $214.00 target price on shares of Zscaler in a research note on Friday. Deutsche Bank Aktiengesellschaft lowered their price objective on Zscaler from $185.00 to $175.00 and set a “buy” rating for the company in a research report on Wednesday, May 27th. Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $200.00 target price on shares of Zscaler in a research note on Wednesday, June 10th. Scotiabank lowered their price target on shares of Zscaler from $190.00 to $175.00 and set a “sector outperform” rating for the company in a report on Wednesday, May 27th. Finally, Piper Sandler dropped their price target on shares of Zscaler from $185.00 to $160.00 and set a “neutral” rating for the company in a research report on Wednesday, May 27th. Thirty-four investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $215.90.
Check Out Our Latest Report on ZS
Zscaler Price Performance
Zscaler (NASDAQ:ZS – Get Free Report) last posted its quarterly earnings data on Thursday, September 3rd. The company reported $1.19 earnings per share for the quarter, beating the consensus estimate of $1.09 by $0.10. Zscaler had a negative net margin of 1.88% and a positive return on equity of 1.23%. The firm had revenue of $898.19 million for the quarter, compared to analysts’ expectations of $876.96 million. During the same quarter last year, the company posted $0.89 EPS. The business’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, analysts predict that Zscaler will post 0.13 EPS for the current fiscal year.
Insider Buying and Selling at Zscaler
In related news, insider Adam Geller sold 2,817 shares of the firm’s stock in a transaction that occurred on Monday, June 22nd. The shares were sold at an average price of $122.60, for a total transaction of $345,364.20. Following the completion of the sale, the insider owned 42,314 shares of the company’s stock, valued at $5,187,696.40. This trade represents a 6.24% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 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 directly owned 343,038 shares in the company, valued at $43,370,294.34. This trade represents a 0.83% decrease in their ownership of the stock. 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. Insiders have sold a total of 16,772 shares of company stock valued at $2,139,799 over the last ninety days. Company insiders own 17.20% of the company’s stock.
Institutional Trading of Zscaler
Large investors have recently modified their holdings of the company. Handelsbanken Fonder AB boosted its holdings in shares of Zscaler by 89.6% in the second quarter. Handelsbanken Fonder AB now owns 60,933 shares of the company’s stock worth $8,601,000 after buying an additional 28,792 shares during the last quarter. Assenagon Asset Management S.A. grew its position in Zscaler by 6.6% during the second quarter. Assenagon Asset Management S.A. now owns 193,297 shares of the company’s stock valued at $27,284,000 after buying an additional 11,941 shares during the period. Oxbow Advisors LLC bought a new position in Zscaler in the fourth quarter worth approximately $2,939,000. Qsemble Capital Management LP boosted its stake in shares of Zscaler by 105.5% during the 4th quarter. Qsemble Capital Management LP now owns 15,773 shares of the company’s stock worth $3,548,000 after acquiring an additional 8,099 shares during the last quarter. Finally, Bank of America Corp DE grew its position in shares of Zscaler by 44.3% during the 1st quarter. Bank of America Corp DE now owns 779,245 shares of the company’s stock valued at $109,320,000 after acquiring an additional 239,326 shares during the period. Institutional investors own 46.45% of the company’s stock.
Key Stories Impacting Zscaler
Here are the key news stories impacting Zscaler this week:
- Positive Sentiment: Strong fiscal fourth-quarter results: Zscaler reported adjusted EPS of $1.19 versus the $1.09 consensus and revenue of $898.2 million versus $877.0 million expected. Revenue and annual recurring revenue (ARR) each increased 25% year over year, while non-GAAP operating margin reached a record 24%. Zscaler Announces Strong Fourth Quarter and Fiscal 2026 Financial Results
- Positive Sentiment: AI and platform demand remain catalysts: Management highlighted growing demand for Security for AI, Agentic SecOps, non-seat-based products and large enterprise deals. Analysts including Baird, Stephens, Needham, Canaccord and Cantor raised price targets, generally citing the earnings beat and potential for conservative guidance to be exceeded. Zscaler Analysts Boost Their Forecasts After Better-Than-Expected Q4 Earnings
- Neutral Sentiment: Analyst opinion is divided: Some analysts called the fiscal 2027 outlook overly cautious and maintained bullish ratings, while others noted that the forecast reflects competitive pressure, the Red Canary acquisition and a more measured growth profile.
- Negative Sentiment: Fiscal 2027 growth is expected to decelerate: Zscaler guided for revenue growth of 16.6% to 17.5% and ARR growth of 16.6% to 17.4%, well below the 25% growth delivered in fiscal 2026. The slower outlook overshadowed the quarterly beat and renewed valuation concerns for high-growth cybersecurity stocks. Zscaler Fiscal 2027 Growth Forecast
- Negative Sentiment: Free cash flow weakened sharply: Fourth-quarter free cash flow fell 65% year over year to $60.8 million, versus approximately $66.9 million expected, as capital expenditures and internal-use software spending increased. Zscaler also announced a restructuring affecting about 3% of its workforce, adding execution concerns. Zscaler Shares Fall Despite Earnings Beat
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.
Featured Articles
- Five stocks we like better than Zscaler
- AI Token Costs Are Changing the Hardware vs. Software Debate
- 3 ETFs That Could Move as Rate Expectations Shift
- 3 Stocks With September Catalysts Investors Shouldn’t Ignore
- Ollie’s Bargain Outlet Stock Falls on Weak Comps Despite Margin Gains
Receive News & Ratings for Zscaler Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Zscaler and related companies with MarketBeat.com's FREE daily email newsletter.
