Zscaler (NASDAQ:ZS) Price Target Lowered to $175.00 at Citigroup

Posted by Patrick Bannon on May 27th, 2026

Zscaler (NASDAQ:ZS – Get Free Report) had its target price dropped by Citigroup from $205.00 to $175.00 in a research note issued to investors on Wednesday,Benzinga reports. The firm currently has a “buy” rating on the stock. Citigroup’s target price would indicate a potential upside of 38.32% from the company’s current price.

ZS has been the subject of several other research reports. Canaccord Genuity Group decreased their price objective on Zscaler from $275.00 to $210.00 and set a “buy” rating for the company in a report on Wednesday. Guggenheim restated a “neutral” rating on shares of Zscaler in a research report on Wednesday. BMO Capital Markets cut their price objective on shares of Zscaler from $210.00 to $178.00 and set an “outperform” rating for the company in a research report on Wednesday. Evercore set a $155.00 price objective on shares of Zscaler and gave the stock an “in-line” rating in a research report on Wednesday. Finally, Deutsche Bank Aktiengesellschaft cut their price objective on shares of Zscaler from $185.00 to $175.00 and set a “buy” rating for the company in a research report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating, eight have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, Zscaler has a consensus rating of “Moderate Buy” and a consensus target price of $219.59.

Get Our Latest Stock Analysis on ZS

Zscaler Stock Down 31.5%

NASDAQ ZS traded down $58.08 on Wednesday, hitting $126.52. 25,272,143 shares of the stock traded hands, compared to its average volume of 3,137,971. The stock has a 50-day moving average of $145.75 and a 200 day moving average of $192.65. The company has a current ratio of 1.90, a quick ratio of 1.90 and a debt-to-equity ratio of 0.78. The company has a market capitalization of $20.34 billion, a P/E ratio of -301.15 and a beta of 0.96. Zscaler has a twelve month low of $114.63 and a twelve month high of $336.99.

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

Insider Activity

In other news, CFO Kevin Rubin sold 1,682 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 transaction of $263,384.38. Following the transaction, the chief financial officer owned 46,479 shares in the company, valued at approximately $7,278,146.61. The trade was a 3.49% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Raj Judge sold 2,488 shares of Zscaler stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total transaction of $389,595.92. Following the transaction, the executive vice president owned 67,906 shares in the company, valued at approximately $10,633,400.54. This trade represents a 3.53% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 12,130 shares of company stock valued at $1,892,487. 17.20% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Zscaler

A number of hedge funds have recently modified their holdings of ZS. Westpac Banking Corp grew its position in Zscaler by 919.0% in the 3rd quarter. Westpac Banking Corp now owns 9,986 shares of the company’s stock worth $2,992,000 after purchasing an additional 9,006 shares in the last quarter. Korea Investment CORP boosted its holdings in Zscaler by 24.0% in the 3rd quarter. Korea Investment CORP now owns 98,370 shares of the company’s stock worth $29,478,000 after buying an additional 19,026 shares during the period. Vinva Investment Management Ltd lifted its stake in Zscaler by 136.1% in the 3rd quarter. Vinva Investment Management Ltd now owns 11,347 shares of the company’s stock worth $3,400,000 after purchasing an additional 6,541 shares in the last quarter. Oxbow Advisors LLC purchased a new stake in Zscaler in the 4th quarter worth approximately $2,939,000. Finally, Handelsbanken Fonder AB lifted its stake in Zscaler by 43.1% in the 3rd quarter. Handelsbanken Fonder AB now owns 55,907 shares of the company’s stock worth $16,753,000 after purchasing an additional 16,839 shares in the last quarter. Institutional investors and hedge funds own 46.45% of the company’s stock.

Zscaler News Summary

Here are the key news stories impacting Zscaler this week:

Positive Sentiment: Zscaler beat fiscal Q3 expectations, posting $1.08 EPS versus $1.01 expected and revenue of $850.5 million versus $835.6 million expected, with revenue up 25% year over year and ARR also growing 25%. Article: Zscaler Announces Strong Third-Quarter Fiscal 2026 Results
Positive Sentiment: The company also raised FY2026 EPS guidance, and several analysts still kept bullish ratings despite trimming price targets, suggesting the long-term thesis remains intact. Article: Zscaler Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call
Neutral Sentiment: Commentary around AI security and cybersecurity demand remains constructive, with articles noting Zscaler’s positioning as an AI-era security platform and possible share gains over time. Article: Zscaler Stock Drops 30%: Why the Dip Is a Buy Opportunity
Negative Sentiment: Management’s Q4 revenue outlook of $875 million to $878 million came in slightly below consensus, raising concern that growth could slow as competition intensifies and enterprise spending gets more selective. Article: Zscaler sees downbeat quarterly revenue as competition heats up in cybersecurity market
Negative Sentiment: Reports also pointed to sales leadership departures and a weaker free cash flow outlook, which added to the selloff and prompted a fraud-investigation headline from a law firm. Article: ZS Investors Have Opportunity to Join Zscaler, Inc. Fraud Investigation with the Schall Law Firm

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.