Zscaler (NASDAQ:ZS) Upgraded to Strong-Buy at Wells Fargo & Company

Zscaler (NASDAQ:ZS) was upgraded by Wells Fargo & Company to a “strong-buy” rating in a report released on Monday,Zacks.com reports.

ZS has been the topic of several other reports. Canaccord Genuity Group lowered their price target on Zscaler from $340.00 to $275.00 and set a “buy” rating on the stock in a research note on Friday, February 27th. Bank of America decreased their price objective on Zscaler from $355.00 to $335.00 and set a “buy” rating on the stock in a report on Wednesday, November 26th. Zacks Research cut Zscaler from a “hold” rating to a “strong sell” rating in a research report on Thursday, February 26th. Robert W. Baird cut their target price on Zscaler from $360.00 to $300.00 and set an “outperform” rating for the company in a research note on Monday, February 23rd. Finally, Oppenheimer decreased their price target on shares of Zscaler from $345.00 to $280.00 and set an “outperform” rating on the stock in a research note on Friday, February 27th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, six have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $267.92.

Zscaler Price Performance

Shares of Zscaler stock opened at $154.67 on Monday. The company has a debt-to-equity ratio of 0.78, a current ratio of 1.90 and a quick ratio of 1.90. Zscaler has a fifty-two week low of $140.56 and a fifty-two week high of $336.99. The firm has a fifty day moving average price of $195.76 and a two-hundred day moving average price of $253.19. The company has a market cap of $24.87 billion, a PE ratio of -368.26, a price-to-earnings-growth ratio of 210.65 and a beta of 1.07.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings results on Thursday, February 26th. The company reported $1.01 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.89 by $0.12. The company had revenue of $815.75 million for the quarter, compared to analyst estimates of $798.92 million. Zscaler had a negative net margin of 2.25% and a positive return on equity of 0.06%. The business’s quarterly revenue was up 25.9% on a year-over-year basis. During the same period 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. Analysts expect that Zscaler will post -0.1 EPS for the current year.

Insider Activity at Zscaler

In other news, insider Adam Geller sold 2,060 shares of the business’s stock in a transaction on Tuesday, December 16th. The shares were sold at an average price of $230.82, for a total value of $475,489.20. Following the sale, the insider owned 52,148 shares in the company, valued at approximately $12,036,801.36. The trade was a 3.80% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Robert Schlossman sold 3,084 shares of the stock in a transaction dated 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 owned 77,002 shares of the company’s stock, valued at $17,773,601.64. This trade represents a 3.85% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 19,350 shares of company stock valued at $4,471,509. Insiders own 17.20% of the company’s stock.

Institutional Investors Weigh In On Zscaler

Hedge funds and other institutional investors have recently bought and sold shares of the business. Westpac Banking Corp raised its holdings in shares of Zscaler by 919.0% in the third quarter. Westpac Banking Corp now owns 9,986 shares of the company’s stock valued at $2,992,000 after buying an additional 9,006 shares during the last quarter. VestGen Advisors LLC bought a new stake in Zscaler during the 2nd quarter worth about $1,592,000. Mackenzie Financial Corp increased its position in Zscaler by 133.6% in the 2nd quarter. Mackenzie Financial Corp now owns 14,780 shares of the company’s stock valued at $4,640,000 after acquiring an additional 8,454 shares in the last quarter. Schroder Investment Management Group raised its stake in shares of Zscaler by 11.5% in the second quarter. Schroder Investment Management Group now owns 164,061 shares of the company’s stock worth $51,505,000 after acquiring an additional 16,868 shares during the last quarter. Finally, Ensign Peak Advisors Inc lifted its position in shares of Zscaler by 9.9% during the second quarter. Ensign Peak Advisors Inc now owns 395,391 shares of the company’s stock worth $124,129,000 after purchasing an additional 35,770 shares in the last quarter. 46.45% of the stock is owned by institutional investors and hedge funds.

Zscaler News Summary

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Wells Fargo initiated coverage with an “Overweight” rating and a $200 price target, giving the stock meaningful upside from current levels. Zscaler receives Overweight rating as Wells Fargo initiates coverage
• Positive Sentiment: Reported FQ2 2026 results topped estimates: revenue ~$816M (+26% YoY), ARR growth ~25% to ~$3.4B, and EPS ahead of consensus — management set FY26 EPS guidance (3.99–4.02). These fundamentals support renewed investor confidence. Zscaler (ZS) Reports Record FQ2 2026 Revenue Driven by Massive Enterprise Adoption
• Positive Sentiment: Strategic AI and partner initiatives: Zscaler and Bharti Airtel launched a national AI & Cyber Threat Research Center in India to accelerate AI‑driven security research and talent development, and Zscaler expanded AI/security platform integrations with TCS (AI‑driven workspace platform). These deals deepen enterprise reach in high‑growth markets. Zscaler Airtel AI Research Hub Tests Growth Potential Versus Rising Losses TCS, Zscaler launch AI-driven workspace platform for enterprises
• Positive Sentiment: Market commentary highlights Zscaler as oversold and potentially a rebound candidate given strong secular cybersecurity demand and institutional accumulation — this narrative can attract value/technical buyers. 2 Bad News Buys: Why Palo Alto and Zscaler Are Screaming Deals
• Neutral Sentiment: Investor interest/flow signals and options activity are drawing attention (coverage and “whale” option trades), which can amplify moves but are not a directional fundamental change. This Is What Whales Are Betting On Zscaler
• Neutral Sentiment: Zscaler presented at the Morgan Stanley TMT conference — useful for incremental investor color but no single headline change from the event. Zscaler Presents at Morgan Stanley Technology, Media & Telecom Conference 2026 Transcript
• Negative Sentiment: Numerous sell‑side firms have trimmed price targets recently (Morgan Stanley, Mizuho, RBC, BMO, Piper Sandler, Needham, Oppenheimer, etc.), signaling more cautious near‑term analyst sentiment despite some buy/overweight calls — this broad re‑rating is a headwind for the stock. Mizuho Cuts Zscaler Price Target (example of broader cuts)

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.