Citigroup Cuts Zscaler (NASDAQ:ZS) Price Target to $195.00

Posted by Patrick Bannon on Mar 4th, 2026

Zscaler (NASDAQ:ZS – Free Report) had its price target lowered by Citigroup from $305.00 to $195.00 in a research note released on Monday,Benzinga reports. Citigroup currently has a buy rating on the stock.

Several other analysts have also commented on the stock. Canaccord Genuity Group reduced their price target on shares of Zscaler from $340.00 to $275.00 and set a “buy” rating on the stock in a research report on Friday, February 27th. Sanford C. Bernstein upgraded shares of Zscaler from a “market perform” rating to an “outperform” rating and set a $228.00 price objective for the company in a report on Friday, February 13th. BMO Capital Markets decreased their price objective on Zscaler from $315.00 to $210.00 and set an “outperform” rating for the company in a research note on Friday, February 27th. Scotiabank cut their price target on Zscaler from $334.00 to $320.00 and set a “sector outperform” rating on the stock in a research note on Wednesday, November 26th. Finally, Loop Capital set a $320.00 target price on Zscaler in a research note on Thursday, December 11th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $267.92.

View Our Latest Stock Analysis on ZS

Zscaler Stock Up 1.0%

Zscaler stock opened at $156.21 on Monday. Zscaler has a fifty-two week low of $140.56 and a fifty-two week high of $336.99. The business’s 50-day simple moving average is $194.30 and its two-hundred day simple moving average is $252.51. The company has a debt-to-equity ratio of 0.78, a quick ratio of 1.90 and a current ratio of 1.90. The company has a market cap of $25.12 billion, a PE ratio of -371.93, a PEG ratio of 642.19 and a beta of 1.07.

Zscaler (NASDAQ:ZS – Get Free Report) last released its quarterly earnings data on Thursday, February 26th. The company reported $1.01 earnings per share for the quarter, beating analysts’ consensus estimates of $0.89 by $0.12. The business had revenue of $815.75 million during the quarter, compared to analyst estimates of $798.92 million. Zscaler had a positive return on equity of 0.06% and a negative net margin of 2.25%.The company’s revenue was up 25.9% on a year-over-year basis. During the same quarter last year, the business posted $0.78 EPS. Zscaler has set its Q3 2026 guidance at 1.000-1.010 EPS and its FY 2026 guidance at 3.990-4.020 EPS. Equities analysts anticipate that Zscaler will post -0.1 EPS for the current year.

Insider Transactions at Zscaler

In other Zscaler news, CEO Jagtar Singh Chaudhry sold 2,843 shares of the stock in a transaction that occurred on Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total transaction of $656,221.26. Following the transaction, the chief executive officer owned 347,857 shares in the company, valued at $80,292,352.74. This trade represents a 0.81% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Robert Schlossman sold 3,084 shares of the company’s stock in a transaction on Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total transaction of $711,848.88. Following the sale, the insider directly owned 77,002 shares of the company’s stock, valued at approximately $17,773,601.64. This represents a 3.85% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 19,350 shares of company stock valued at $4,471,509. Corporate insiders own 17.20% of the company’s stock.

Institutional Trading of Zscaler

A number of hedge funds have recently modified their holdings of ZS. Binnacle Investments Inc acquired a new stake in Zscaler in the 3rd quarter valued at about $25,000. Tradewinds Capital Management LLC lifted its holdings in Zscaler by 145.7% in the third quarter. Tradewinds Capital Management LLC now owns 86 shares of the company’s stock valued at $26,000 after buying an additional 51 shares during the period. Root Financial Partners LLC acquired a new stake in Zscaler during the 3rd quarter worth $26,000. McIlrath & Eck LLC bought a new stake in shares of Zscaler during the 3rd quarter valued at $29,000. Finally, AlphaCentric Advisors LLC bought a new position in shares of Zscaler in the 4th quarter worth $29,000. 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: Wells Fargo initiated coverage with an “Overweight” / $200 price target (and other outlets report a “strong‑buy” view), signaling fresh institutional conviction and providing upside vs. the current level. This likely supports buying interest. Zscaler receives Overweight rating as Wells Fargo initiates coverage
Positive Sentiment: Zscaler reported stronger‑than‑expected FQ2 2026 results (revenue ~$816M, ARR +25% to $3.4B) and raised FY guidance, validating enterprise demand for its cloud security platform and supporting longer‑term growth expectations. Zscaler (ZS) Reports Record FQ2 2026 Revenue Driven by Massive Enterprise Adoption
Positive Sentiment: Strategic partnerships and product expansion — notably an AI & Cyber Threat Research Center with Bharti Airtel and an expanded TCS partnership for AI‑powered solutions — bolster growth avenues in large and fast‑growing markets (India and enterprise AI/security). Zscaler Airtel AI Research Hub Tests Growth Potential Versus Rising Losses TCS Expands Strategic Partnership with Zscaler
Neutral Sentiment: Media pieces are dissecting whether Wall Street’s bullish analyst consensus is a reliable buy signal; these narratives can create short‑term headline volatility but don’t change fundamentals. Is It Worth Investing in Zscaler (ZS) Based on Wall Street’s Bullish Views? Zacks analyst commentary
Neutral Sentiment: Zscaler presented at the Morgan Stanley TMT conference; such investor events help reiterate strategy and can influence sentiment if management provides new guidance or color. Zscaler presentation transcript
Negative Sentiment: Unusually high put‑option activity (≈40,282 puts, +85% vs. typical volume) suggests elevated bearish positioning or hedging by traders, which can amplify downside pressure or volatility near-term.
Negative Sentiment: Citigroup has lowered its expectations for ZS, reflecting some sell‑side concern about near‑term valuation or growth risk; downward analyst revisions can weigh on the stock until offset by new positive catalysts. Citigroup Has Lowered Expectations for Zscaler

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.