Zscaler (NASDAQ:ZS) Price Target Lowered to $205.00 at Royal Bank Of Canada

Zscaler (NASDAQ:ZS) had its price objective trimmed by Royal Bank Of Canada from $250.00 to $205.00 in a report released on Friday,Benzinga reports. The firm currently has an outperform rating on the stock.

Several other brokerages also recently issued reports on ZS. Berenberg Bank lowered their price objective on shares of Zscaler from $390.00 to $320.00 and set a “buy” rating for the company in a research report on Friday. Macquarie Infrastructure assumed coverage on Zscaler in a report on Friday, October 31st. They set an “outperform” rating and a $390.00 target price for the company. HC Wainwright restated a “buy” rating on shares of Zscaler in a report on Wednesday, November 26th. Scotiabank decreased their price objective on Zscaler from $334.00 to $320.00 and set a “sector outperform” rating for the company in a report on Wednesday, November 26th. Finally, Rosenblatt Securities reissued a “buy” rating and issued a $280.00 target price on shares of Zscaler in a research report on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, six have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $274.37.

Zscaler Trading Down 12.2%

ZS stock traded down $20.37 during midday trading on Friday, hitting $146.99. 11,080,725 shares of the company’s stock were exchanged, compared to its average volume of 3,018,555. Zscaler has a one year low of $140.56 and a one year high of $336.99. The stock’s fifty day moving average price is $198.92 and its 200-day moving average price is $255.20. The company has a market cap of $23.44 billion, a PE ratio of -349.98, a price-to-earnings-growth ratio of 341.17 and a beta of 1.02. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.82 and a current ratio of 1.82.

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

Insider Buying and Selling at Zscaler

In other news, EVP Raj Judge sold 3,438 shares of the business’s 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 $793,559.16. Following the completion of the sale, the executive vice president owned 70,394 shares in the company, valued at $16,248,343.08. The trade was a 4.66% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Adam Geller sold 1,620 shares of the stock in a transaction that occurred on Wednesday, December 17th. The stock was sold at an average price of $232.79, for a total value of $377,119.80. Following the transaction, the insider owned 50,528 shares in the company, valued at approximately $11,762,413.12. This trade represents a 3.11% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 19,350 shares of company stock worth $4,471,509 in the last ninety days. Insiders own 17.20% of the company’s stock.

Hedge Funds Weigh In On Zscaler

Several institutional investors and hedge funds have recently modified their holdings of the business. Virtu Financial LLC bought a new position in Zscaler during the fourth quarter worth about $2,305,000. Sunbelt Securities Inc. increased its position in shares of Zscaler by 92.9% in the fourth quarter. Sunbelt Securities Inc. now owns 3,755 shares of the company’s stock worth $845,000 after purchasing an additional 1,808 shares during the period. Kovitz Investment Group Partners LLC raised its stake in Zscaler by 618.0% in the fourth quarter. Kovitz Investment Group Partners LLC now owns 6,785 shares of the company’s stock valued at $1,526,000 after purchasing an additional 5,840 shares in the last quarter. Mcguire Capital Advisors Inc. bought a new stake in Zscaler during the fourth quarter worth about $32,000. Finally, Invesco Ltd. increased its holdings in Zscaler by 13.8% in the 4th quarter. Invesco Ltd. now owns 1,469,657 shares of the company’s stock valued at $330,555,000 after buying an additional 178,692 shares during the period. 46.45% of the stock is currently owned by institutional investors and hedge funds.

More Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Q2 results beat: adjusted EPS $1.01 vs. $0.89 est., revenue $815.8M vs. ~$799M est., and ARR grew ~25% year/year — signals demand momentum. GlobeNewswire: Q2 Results
• Positive Sentiment: Management is pitching AI security growth and new initiatives (AI Guard, agentic security, India AI/Cyber center with Airtel) as durable secular drivers that expand TAM beyond seat-based SaaS. CFO Interview Airtel AI Center
• Neutral Sentiment: Management issued updated forward guidance and commentary (Q3 EPS range and FY EPS range were provided), creating mixed signals that markets are parsing. Earnings Highlights
• Neutral Sentiment: Executives (CEO & CFO) gave interviews and the full call transcript is available — useful for investors wanting detail on churn, acquisitions and how AI monetization will scale. Earnings Call Transcript
• Negative Sentiment: Wider GAAP loss and higher spending: the company posted a larger net loss driven by increased sales, marketing and R&D, which pressured investor sentiment. Reuters: Wider Loss
• Negative Sentiment: Mixed/uncertain revenue outlook commentary: some outlets reported the company lowered aspects of its revenue outlook, creating confusion and weighing on the stock despite EPS beats. Benzinga: Revenue Guidance Report
• Negative Sentiment: Broad analyst price‑target cuts today from multiple firms (Canaccord, Morgan Stanley, Oppenheimer, Berenberg, Needham, and others) have amplified selling pressure even as many kept “buy/outperform” stances — the cuts compress perception of near‑term upside. MarketScreener: Analyst Cuts
• Negative Sentiment: Market reaction: investors appear to be focusing on margin/expense trajectory, competitive pressure and near-term revenue clarity rather than the company’s AI growth story — producing the stock decline. Seeking Alpha: Market Reaction

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.