Zscaler (NASDAQ:ZS) Price Target Cut to $290.00 by Analysts at Citizens Jmp

Zscaler (NASDAQ:ZS) had its price target lowered by investment analysts at Citizens Jmp from $355.00 to $290.00 in a research report issued to clients and investors on Friday,Benzinga reports. The firm presently has a “market outperform” rating on the stock. Citizens Jmp’s price objective indicates a potential upside of 96.62% from the stock’s current price.

A number of other brokerages have also issued reports on ZS. Morgan Stanley set a $305.00 price target on Zscaler in a research note on Thursday, December 18th. Bank of America decreased their price target on Zscaler from $355.00 to $335.00 and set a “buy” rating for the company in a research note on Wednesday, November 26th. TD Cowen reduced their target price on shares of Zscaler from $330.00 to $260.00 and set a “buy” rating on the stock in a research report on Tuesday. JPMorgan Chase & Co. lowered their price target on shares of Zscaler from $354.00 to $267.00 and set an “overweight” rating for the company in a research report on Friday, February 20th. Finally, Mizuho cut their price objective on shares of Zscaler from $310.00 to $265.00 and set an “outperform” rating on the stock in a research report on Tuesday, February 17th. One research analyst has rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $283.97.

Zscaler Stock Performance

Shares of ZS stock opened at $147.50 on Friday. 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 stock has a market cap of $23.52 billion, a PE ratio of -567.27, a price-to-earnings-growth ratio of 317.40 and a beta of 1.02. The company’s fifty day moving average price is $200.63 and its 200-day moving average price is $256.06. Zscaler has a 12 month low of $141.56 and a 12 month high of $336.99.

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 analysts’ consensus estimates of $0.89 by $0.12. Zscaler had a negative net margin of 1.45% and a negative return on equity of 0.12%. The business had revenue of $815.75 million during the quarter, compared to analyst estimates of $798.92 million. During the same period last year, the business earned $0.78 EPS. Zscaler’s revenue was up 25.9% compared to the same quarter last year. Zscaler has set its Q3 2026 guidance at 1.000-1.010 EPS and its FY 2026 guidance at 3.990-4.020 EPS. On average, equities analysts expect that Zscaler will post -0.1 EPS for the current fiscal year.

Insider Activity at Zscaler

In other news, EVP Raj Judge sold 3,438 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 $793,559.16. Following the sale, the executive vice president directly owned 70,394 shares in the company, valued at approximately $16,248,343.08. This trade represents a 4.66% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director James A. Beer sold 653 shares of the business’s stock in a transaction dated Friday, January 2nd. The stock was sold at an average price of $226.72, for a total value of $148,048.16. Following the transaction, the director directly owned 3,485 shares of the company’s stock, valued at approximately $790,119.20. This represents a 15.78% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 19,350 shares of company stock worth $4,471,509 over the last 90 days. 17.20% of the stock is currently owned by corporate insiders.

Institutional Trading of Zscaler

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Bessemer Group Inc. grew its stake in Zscaler by 3.2% in the 3rd quarter. Bessemer Group Inc. now owns 1,021 shares of the company’s stock valued at $306,000 after acquiring an additional 32 shares during the last quarter. Cox Capital Mgt LLC grew its holdings in Zscaler by 0.6% during the 3rd quarter. Cox Capital Mgt LLC now owns 5,576 shares of the company’s stock valued at $1,671,000 after buying an additional 33 shares during the last quarter. Brookstone Capital Management increased its position in Zscaler by 3.7% during the third quarter. Brookstone Capital Management now owns 936 shares of the company’s stock worth $280,000 after buying an additional 33 shares in the last quarter. Wedbush Securities Inc. boosted its stake in shares of Zscaler by 0.7% during the third quarter. Wedbush Securities Inc. now owns 5,129 shares of the company’s stock valued at $1,537,000 after acquiring an additional 34 shares during the last quarter. Finally, Goldstream Capital Management Ltd lifted its holdings in Zscaler by 0.3% in the 3rd quarter. Goldstream Capital Management Ltd now owns 12,450 shares of the company’s stock valued at $3,731,000 after purchasing an additional 34 shares in the last quarter. Hedge funds and other institutional investors own 46.45% of the company’s stock.

Key Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler reported Q2 results that beat consensus on revenue and adjusted EPS, with revenue up ~26% year-over-year and ARR growth of ~25%; management raised fiscal ARR guidance and lifted FY/Q3 EPS outlook—evidence of continued demand and improving profitability metrics. Zscaler Q2 Earnings Surpass Estimates
• Positive Sentiment: Zscaler expanded its footprint in India with an AI & Cyber Threat Research Center in partnership with Bharti Airtel — a strategic move to boost product development, local sales motion and presence in a large growth market. Zscaler Airtel AI Cyber Center Opens
• Neutral Sentiment: Earnings-call commentary highlighted strong demand for Zscaler’s AI security offerings and platform, but management also discussed acquisition-related churn and competitive pressure — useful color for determining whether ARR momentum is sustainable. Q2 2026 Earnings Call Transcript
• Negative Sentiment: Despite beats, shares fell after the quarter because Zscaler reported a wider GAAP net loss driven by higher sales, marketing and R&D spending and investors reacted to softer/uncertain revenue guidance in parts — a classic beat-but-disappoint reaction when margins or cash metrics worsen. Zscaler posts wider quarterly loss
• Negative Sentiment: Several sell-side analysts cut price targets (Needham, Piper Sandler) or updated ratings after the print, narrowing upside and signaling reduced near-term enthusiasm; that analyst revision activity is pressuring the stock. Analyst Price Target Changes (Benzinga)

Zscaler Company Profile

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.