KeyCorp Comments on Zscaler’s Q2 Earnings (NASDAQ:ZS)

Zscaler, Inc. (NASDAQ:ZS) – Analysts at KeyCorp issued their Q2 2026 EPS estimates for Zscaler in a research report issued on Monday, January 12th. KeyCorp analyst E. Heath expects that the company will post earnings of ($0.05) per share for the quarter. KeyCorp currently has a “Overweight” rating and a $300.00 target price on the stock. The consensus estimate for Zscaler’s current full-year earnings is ($0.10) per share. KeyCorp also issued estimates for Zscaler’s Q3 2026 earnings at $0.01 EPS, Q4 2026 earnings at $0.03 EPS, FY2026 earnings at $0.01 EPS and FY2027 earnings at $0.22 EPS.

Several other brokerages also recently issued reports on ZS. Berenberg Bank reduced their price objective on shares of Zscaler from $400.00 to $390.00 and set a “buy” rating on the stock in a research note on Friday, November 28th. Wall Street Zen cut Zscaler from a “buy” rating to a “hold” rating in a report on Saturday, October 18th. Macquarie began coverage on Zscaler in a research note on Friday, October 31st. They issued an “outperform” rating and a $390.00 target price for the company. Royal Bank Of Canada reduced their target price on Zscaler from $366.00 to $290.00 and set an “outperform” rating on the stock in a research report on Monday, January 5th. Finally, UBS Group lowered their target price on shares of Zscaler from $350.00 to $340.00 and set a “buy” rating for the company in a report on Wednesday, November 26th. One research analyst has rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, Zscaler currently has a consensus rating of “Moderate Buy” and a consensus price target of $317.63.

Zscaler Stock Performance

NASDAQ:ZS opened at $214.27 on Thursday. The company has a current ratio of 1.82, a quick ratio of 1.82 and a debt-to-equity ratio of 0.86. The company has a market capitalization of $34.17 billion, a P/E ratio of -824.08, a price-to-earnings-growth ratio of 4,157.99 and a beta of 1.02. The firm has a 50-day moving average price of $251.92 and a two-hundred day moving average price of $279.05. Zscaler has a twelve month low of $164.78 and a twelve month high of $336.99.

Zscaler (NASDAQ:ZS) last issued its earnings results on Tuesday, November 25th. The company reported $0.96 EPS for the quarter, topping the consensus estimate of $0.85 by $0.11. Zscaler had a negative net margin of 1.45% and a negative return on equity of 0.12%. The company had revenue of $788.11 million for the quarter, compared to analyst estimates of $773.86 million. During the same period in the previous year, the firm earned $0.77 EPS. The business’s revenue was up 25.5% on a year-over-year basis. Zscaler has set its FY 2026 guidance at 3.780-3.820 EPS and its Q2 2026 guidance at 0.890-0.900 EPS.

Institutional Investors Weigh In On Zscaler

Hedge funds and other institutional investors have recently bought and sold shares of the business. Integrated Wealth Concepts LLC boosted its stake in shares of Zscaler by 19.9% during the 1st quarter. Integrated Wealth Concepts LLC now owns 1,439 shares of the company’s stock worth $285,000 after acquiring an additional 239 shares in the last quarter. NewEdge Advisors LLC lifted its stake in Zscaler by 8.2% during the first quarter. NewEdge Advisors LLC now owns 4,899 shares of the company’s stock valued at $972,000 after buying an additional 370 shares in the last quarter. Empowered Funds LLC boosted its holdings in shares of Zscaler by 9.2% in the first quarter. Empowered Funds LLC now owns 2,811 shares of the company’s stock worth $558,000 after buying an additional 238 shares during the period. Financiere des Professionnels Fonds d investissement inc. acquired a new position in shares of Zscaler in the second quarter worth about $532,000. Finally, Aaron Wealth Advisors LLC purchased a new position in shares of Zscaler in the second quarter worth approximately $205,000. 46.45% of the stock is currently owned by institutional investors.

Insider Buying and Selling

In other Zscaler news, CEO Jagtar Singh Chaudhry sold 2,843 shares of the stock in a transaction on Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total value of $656,221.26. Following the sale, the chief executive officer directly owned 347,857 shares of the company’s stock, 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 filing with the Securities & Exchange Commission, which is available at this link. Also, insider Adam Geller sold 1,620 shares of Zscaler stock in a transaction dated Wednesday, December 17th. The shares were sold at an average price of $232.79, for a total transaction of $377,119.80. Following the completion of the sale, the insider owned 50,528 shares in the company, valued at approximately $11,762,413.12. This represents a 3.11% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 22,550 shares of company stock worth $5,511,509. 17.20% of the stock is currently owned by insiders.

More Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: KeyCorp reiterated an “Overweight” rating and a $300 price target while publishing updated quarterly and annual EPS forecasts that show Zscaler moving toward profitability (KeyCorp models: FY2026 ~ $0.01 EPS, FY2027 ~ $0.22 EPS). That upward multi-quarter/annual outlook supports a constructive medium-term earnings trajectory for the stock.
• Positive Sentiment: Partner win — WEI achieved Zscaler Premier Partner status, which should help channel reach and enterprise adoption of Zscaler’s zero?trust and secure AI offerings, supporting revenue growth prospects. WEI Achieves Zscaler Premier Partner Status
• Positive Sentiment: Buy-side / media pieces continue to pitch Zscaler as a long-term growth story (deepening zero-trust demand and AI security tailwinds), which can support investor sentiment beyond near-term noise. See coverage arguing Zscaler is a top growth stock for the long term. Why Zscaler is a top growth stock Zacks: Top growth stock
• Neutral Sentiment: Market commentary noted a recent intraday decline in Zscaler shares (coverage pointing to the stock dipping more than the broader market), which reflects short-term trading pressure rather than new company-specific fundamentals. Zacks: Why Zscaler dipped
• Negative Sentiment: Citigroup trimmed its price target from $350 to $305 (still a “buy”), and that cut—despite remaining above current levels—can create downward pressure as some investors react to the lower upside projection. Citi lowers Zscaler price target

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.