Zscaler (NASDAQ:ZS) Raised to “Strong-Buy” at Wells Fargo & Company

Zscaler (NASDAQ:ZS) was upgraded by research analysts at Wells Fargo & Company to a “strong-buy” rating in a research report issued to clients and investors on Monday,Zacks.com reports.

Several other research firms have also recently commented on ZS. Robert W. Baird decreased their price target on shares of Zscaler from $360.00 to $300.00 and set an “outperform” rating on the stock in a research note on Monday, February 23rd. Sanford C. Bernstein upgraded Zscaler from a “market perform” rating to an “outperform” rating and set a $228.00 target price for the company in a research report on Friday, February 13th. KeyCorp decreased their price target on Zscaler from $300.00 to $250.00 and set an “overweight” rating on the stock in a report on Tuesday, February 17th. Barclays set a $220.00 price objective on Zscaler in a research report on Thursday, February 19th. Finally, BMO Capital Markets dropped their price target on shares of Zscaler from $315.00 to $210.00 and set an “outperform” rating for the company in a research note on Friday, February 27th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, six have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $267.92.

Zscaler Stock Up 4.1%

NASDAQ ZS opened at $154.67 on Monday. The stock’s 50 day simple moving average is $195.76 and its 200 day simple moving average is $253.19. Zscaler has a one year low of $140.56 and a one year high of $336.99. The firm 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. 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 (NASDAQ:ZS) last posted its quarterly earnings data on Thursday, February 26th. The company reported $1.01 EPS for the quarter, topping analysts’ consensus estimates 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 positive return on equity of 0.06% and a negative net margin of 2.25%.The business’s revenue was up 25.9% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.78 earnings per share. Zscaler has set its Q3 2026 guidance at 1.000-1.010 EPS and its FY 2026 guidance at 3.990-4.020 EPS. As a group, sell-side analysts forecast that Zscaler will post -0.1 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Zscaler news, insider Adam Geller sold 2,060 shares of Zscaler stock in a transaction dated Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total transaction of $475,489.20. Following the transaction, the insider directly owned 52,148 shares in the company, valued at approximately $12,036,801.36. The trade was a 3.80% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Raj Judge sold 3,438 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 value of $793,559.16. Following the completion of the sale, the executive vice president owned 70,394 shares of the company’s stock, valued at $16,248,343.08. This trade represents a 4.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 19,350 shares of company stock worth $4,471,509 over 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. Integrated Wealth Concepts LLC lifted its stake in Zscaler by 19.9% in the first quarter. Integrated Wealth Concepts LLC now owns 1,439 shares of the company’s stock valued at $285,000 after buying an additional 239 shares in the last quarter. NewEdge Advisors LLC increased its position in shares of Zscaler by 8.2% during the first quarter. NewEdge Advisors LLC now owns 4,899 shares of the company’s stock worth $972,000 after acquiring an additional 370 shares in the last quarter. Empowered Funds LLC raised its holdings in shares of Zscaler by 9.2% during the first quarter. Empowered Funds LLC now owns 2,811 shares of the company’s stock worth $558,000 after acquiring an additional 238 shares during the period. Sivia Capital Partners LLC acquired a new stake in shares of Zscaler during the second quarter worth $252,000. Finally, Nisa Investment Advisors LLC lifted its position in Zscaler by 14.6% in the 2nd quarter. Nisa Investment Advisors LLC now owns 533 shares of the company’s stock valued at $167,000 after acquiring an additional 68 shares in the last quarter. 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: FQ2 2026 results beat expectations — revenue ~$816M (+26% YoY) and ARR growth of ~25% to $3.4B, with EPS above consensus; reinforces execution and large-enterprise demand. Zscaler (ZS) Reports Record FQ2 2026 Revenue Driven by Massive Enterprise Adoption
• Positive Sentiment: Wells Fargo initiated coverage with an Overweight / Strong Buy stance and set a $200 price target — a visible analyst endorsement that implies ~29% upside from the current trading range and can attract buyers. Zscaler receives Overweight rating as Wells Fargo initiates coverage
• Positive Sentiment: Strategic AI/security partnerships: a national AI & Cyber Threat Research Center with Bharti Airtel in India and expanded AI-driven workspace work with TCS broaden international growth and AI product positioning. These moves support long-term ARR expansion in fast-growth markets. Zscaler Airtel AI Research Hub Tests Growth Potential Versus Rising Losses
• Positive Sentiment: TCS partnership and new AI-driven workspace product expand go-to-market and enterprise integration, which could accelerate large-deal momentum. TCS Expands Strategic Partnership with Zscaler
• Positive Sentiment: Market commentary argues Zscaler is oversold and technically positioned for a rebound, which can attract value-oriented buyers and cause short-covering. 2 Bad News Buys: Why Palo Alto and Zscaler Are Screaming Deals
• Neutral Sentiment: Investor materials and conference appearances (Morgan Stanley transcript) provide detail but are largely informational rather than catalytic. Zscaler Presents at Morgan Stanley TMT Conference — Transcript
• Neutral Sentiment: Options and retail interest articles highlight speculative positioning; these can amplify intraday moves but don’t alter fundamentals. This Is What Whales Are Betting On Zscaler
• Negative Sentiment: Citigroup lowered expectations/price posture (PT cut to $195 per reports) — a downgrade in forward outlook that can weigh on sentiment despite the remaining upside. Citigroup Has Lowered Expectations for Zscaler
• Negative Sentiment: Goldman trimmed its price target from $290 to $257 and moved to a Neutral rating — another signal that some analysts see less near-term upside, which can limit immediate multiple expansion. Goldman Sachs Lowers Price Target on Zscaler

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.