Mizuho Cuts Zscaler (NASDAQ:ZS) Price Target to $250.00

Zscaler (NASDAQ:ZS) had its price objective dropped by equities research analysts at Mizuho from $265.00 to $250.00 in a report issued on Friday,Benzinga reports. The brokerage presently has an “outperform” rating on the stock. Mizuho’s target price indicates a potential upside of 73.57% from the stock’s current price.

Several other brokerages have also issued reports on ZS. Stifel Nicolaus lowered their target price on Zscaler from $330.00 to $320.00 and set a “buy” rating on the stock in a research note on Wednesday, November 26th. HC Wainwright reissued a “buy” rating on shares of Zscaler in a research report on Wednesday, November 26th. UBS Group lowered their target price on shares of Zscaler from $350.00 to $340.00 and set a “buy” rating on the stock in a report on Wednesday, November 26th. Citizens Jmp cut their price target on Zscaler from $355.00 to $290.00 and set a “market outperform” rating for the company in a report on Friday. Finally, BTIG Research reduced their price target on Zscaler from $365.00 to $209.00 and set a “buy” rating for the company in a research report on Tuesday. 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 assigned a Sell rating to the company. According to data from MarketBeat, Zscaler presently has an average rating of “Moderate Buy” and a consensus target price of $277.26.

Zscaler Trading Down 13.9%

Shares of ZS stock traded down $23.33 during trading hours on Friday, hitting $144.03. 6,797,765 shares of the company’s stock traded hands, compared to its average volume of 2,596,302. Zscaler has a 12 month low of $140.56 and a 12 month high of $336.99. The company has a quick ratio of 1.82, a current ratio of 1.82 and a debt-to-equity ratio of 0.86. The stock has a market cap of $22.97 billion, a PE ratio of -552.62, a price-to-earnings-growth ratio of 317.40 and a beta of 1.02. The stock’s 50 day simple moving average is $200.63 and its 200 day simple moving average is $256.06.

Zscaler (NASDAQ:ZS) last issued its quarterly earnings results on Thursday, February 26th. The company reported $1.01 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.89 by $0.12. The firm had revenue of $815.75 million for the quarter, compared to analyst estimates of $798.92 million. Zscaler had a negative return on equity of 0.12% and a negative net margin of 1.45%.The company’s revenue was up 25.9% compared to the same quarter last year. During the same period 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. On average, sell-side analysts anticipate that Zscaler will post -0.1 EPS for the current year.

Insider Transactions at Zscaler

In related news, insider Robert Schlossman sold 3,084 shares of the firm’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 $711,848.88. Following the transaction, the insider directly owned 77,002 shares in the company, valued at $17,773,601.64. This trade represents a 3.85% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Kevin Rubin sold 3,303 shares of the company’s stock in a transaction dated Tuesday, December 16th. The shares were sold at an average price of $230.82, for a total transaction of $762,398.46. Following the transaction, the chief financial officer directly owned 48,161 shares of the company’s stock, valued at approximately $11,116,522.02. This trade represents a 6.42% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 19,350 shares of company stock valued at $4,471,509. 17.20% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Zscaler

Institutional investors have recently bought and sold shares of the stock. Groupama Asset Managment lifted its stake in shares of Zscaler by 76,352.6% in the 3rd quarter. Groupama Asset Managment now owns 4,750,000 shares of the company’s stock valued at $1,423,385,000 after purchasing an additional 4,743,787 shares during the period. Federated Hermes Inc. raised its holdings in Zscaler by 314.0% in the 2nd quarter. Federated Hermes Inc. now owns 1,171,983 shares of the company’s stock worth $367,932,000 after acquiring an additional 888,888 shares during the last quarter. Vanguard Group Inc. raised its position in Zscaler by 8.3% in the 2nd quarter. Vanguard Group Inc. now owns 10,715,132 shares of the company’s stock worth $3,363,909,000 after buying an additional 824,626 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its holdings 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 worth $578,576,000 after purchasing an additional 777,414 shares during the last quarter. Finally, AQR Capital Management LLC boosted its stake in shares of Zscaler by 61.8% in the 3rd quarter. AQR Capital Management LLC now owns 1,941,571 shares of the company’s stock worth $576,083,000 after buying an additional 741,756 shares during the last quarter. 46.45% of the stock is owned by institutional investors.

More Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Q2 results beat: Zscaler reported $1.01 EPS vs. $0.89 expected and revenue of $815.8M (vs. ~$798.9M consensus); ARR grew ~25% to $3.36B and the company raised ARR targets and pushed FY/Q3 EPS guidance above prior consensus. Zscaler press release
• Positive Sentiment: AI momentum and business expansion: Management highlighted AI security growth and product demand; Zscaler opened an AI & Cyber Threat Research Center in India with Bharti Airtel, underlining international expansion and AI/security commercialization potential. Zscaler Airtel AI Cyber Center
• Neutral Sentiment: Earnings call / analyst writeups show strong ARR and AI commentary but note near-term execution noise (acquisition-related churn, competition). These details matter for medium-term growth but are less immediately actionable than today’s analyst moves. Earnings highlights
• Negative Sentiment: Wider GAAP loss & spending: Zscaler reported a wider net loss driven by higher sales, marketing and R&D spend; outlets flagged that higher investment weighed on investor sentiment. Reuters: wider loss
• Negative Sentiment: Company commentary and perceived mixed guidance: although EPS guidance was strong, some press reported a lowered revenue outlook or cautious revenue commentary, which heightened investor concern about near-term growth visibility. Benzinga: lowered revenue guidance
• Negative Sentiment: Multiple analyst price?target cuts: Several firms trimmed targets today (examples: Berenberg 390?320, Morgan Stanley 305?200, Citizens/JMP 355?290, BMO 315?210, Needham 310?180, Piper Sandler 260?185). Most retained constructive ratings (buy/overweight/outperform), but the cuts signal lower near?term valuation support and add selling pressure. Berenberg cut Morgan Stanley cut
• Negative Sentiment: Market reaction: Even with upside to estimates, headlines emphasizing higher losses, a trimmed revenue outlook and the analyst downgrades prompted selling — causing the stock to decrease today. Barron’s: falls after earnings

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.