Zscaler (NASDAQ:ZS) Price Target Lowered to $205.00 at JPMorgan Chase & Co.

Zscaler (NASDAQ:ZS) had its price target dropped by research analysts at JPMorgan Chase & Co. from $250.00 to $205.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The brokerage presently has an “overweight” rating on the stock. JPMorgan Chase & Co.‘s target price indicates a potential upside of 60.03% from the stock’s current price.

A number of other research firms have also weighed in on ZS. Morgan Stanley set a $145.00 price objective on shares of Zscaler in a research note on Wednesday. Zacks Research downgraded shares of Zscaler from a “hold” rating to a “strong sell” rating in a research report on Wednesday, April 29th. Truist Financial set a $200.00 price target on shares of Zscaler in a report on Wednesday. Citizens Jmp dropped their price objective on shares of Zscaler from $290.00 to $210.00 and set a “market outperform” rating on the stock in a research note on Friday, May 1st. Finally, Robert W. Baird cut their price objective on shares of Zscaler from $265.00 to $230.00 and set an “outperform” rating on the stock in a report on Wednesday. Two equities research analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating, eight have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $224.86.

Zscaler Trading Down 30.6%

ZS traded down $56.50 during trading on Wednesday, hitting $128.10. 12,013,865 shares of the stock were exchanged, compared to its average volume of 2,961,177. The firm has a 50 day simple moving average of $145.75 and a 200 day simple moving average of $192.65. The firm has a market cap of $20.60 billion, a price-to-earnings ratio of -304.42 and a beta of 0.96. Zscaler has a 1 year low of $114.63 and a 1 year high of $336.99. The company has a debt-to-equity ratio of 0.78, a quick ratio of 1.90 and a current ratio of 1.90.

Zscaler (NASDAQ:ZS) last issued its earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share for the quarter, topping the consensus estimate of $1.01 by $0.07. Zscaler had a positive return on equity of 0.06% and a negative net margin of 2.25%.The business had revenue of $850.48 million during the quarter, compared to analysts’ expectations of $835.60 million. During the same period in the prior year, the business earned $0.84 EPS. The business’s revenue for the quarter 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. As a group, equities analysts expect that Zscaler will post -0.03 EPS for the current year.

Insider Transactions at Zscaler

In other news, insider Adam Geller sold 2,094 shares of Zscaler stock in a transaction that occurred on Wednesday, March 18th. The shares were sold at an average price of $153.53, for a total value of $321,491.82. Following the transaction, the insider owned 46,949 shares of the company’s stock, valued at $7,208,079.97. The trade was a 4.27% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Robert Schlossman sold 2,263 shares of the stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total transaction of $354,363.17. Following the sale, the insider directly owned 72,390 shares of the company’s stock, valued at $11,335,550.10. The trade was a 3.03% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 12,130 shares of company stock worth $1,892,487. 17.20% of the stock is owned by corporate insiders.

Institutional Trading of Zscaler

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Groupama Asset Managment grew its stake in Zscaler by 76,352.6% during the 3rd quarter. Groupama Asset Managment now owns 4,750,000 shares of the company’s stock worth $1,423,385,000 after buying an additional 4,743,787 shares during the last quarter. First Trust Advisors LP raised its stake in Zscaler by 36.2% in the first quarter. First Trust Advisors LP now owns 3,518,678 shares of the company’s stock valued at $493,635,000 after buying an additional 935,781 shares during the last quarter. Price T Rowe Associates Inc. MD raised its stake in Zscaler by 43.3% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,572,358 shares of the company’s stock valued at $578,576,000 after buying an additional 777,414 shares during the last quarter. AQR Capital Management LLC boosted its holdings in Zscaler by 61.8% in the third quarter. AQR Capital Management LLC now owns 1,941,571 shares of the company’s stock worth $576,083,000 after acquiring an additional 741,756 shares in the last quarter. Finally, Pictet Asset Management Holding SA boosted its holdings in Zscaler by 52.5% in the first quarter. Pictet Asset Management Holding SA now owns 1,920,540 shares of the company’s stock worth $269,285,000 after acquiring an additional 661,413 shares in the last quarter. Hedge funds and other institutional investors own 46.45% of the company’s stock.

Zscaler News Roundup

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler reported fiscal Q3 revenue of $850.5 million and EPS of $1.08, both above estimates, while revenue rose 25% year over year and ARR also grew 25%, reinforcing the company’s strong core demand. Article: Zscaler Announces Strong Third-Quarter Fiscal 2026 Results
• Positive Sentiment: Management raised FY26 guidance and pointed to strength in AI security and record margins, which supports the long-term growth narrative for the cybersecurity platform. Article: ZS Q3 Earnings Call Flags Prudent Growth Outlook
• Positive Sentiment: Several analysts still view the stock favorably despite trimming targets, with Rosenblatt, Bernstein, Baird, and Needham maintaining bullish or buy-equivalent ratings, suggesting Wall Street still sees upside from current levels. Article: Analyst target updates
• Neutral Sentiment: New commentary on Zscaler’s AI security strategy and product expansion adds to the growth story, but also notes the stock may still need stronger execution to justify its valuation. Article: As Zscaler Doubles Down on AI Security, ZS Stock Still Needs More to Justify Its Steep Valuation
• Negative Sentiment: Despite the beat, Zscaler’s guidance disappointed traders: the company forecast fourth-quarter revenue slightly below estimates, and Reuters said the outlook reflected intensifying competition in cybersecurity and more cautious enterprise spending. Article: Zscaler sees downbeat quarterly revenue as competition heats up in cybersecurity market
• Negative Sentiment: Some recent analyst notes turned more cautious, including a Seeking Alpha downgrade citing slowing organic growth, weaker net-new ARR momentum, and competitive pressure from integrated security platforms. Article: Zscaler Q1: I Was Right (Rating Downgrade)

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.