BMO Capital Markets Cuts Zscaler (NASDAQ:ZS) Price Target to $210.00

Zscaler (NASDAQ:ZS) had its price target decreased by stock analysts at BMO Capital Markets from $315.00 to $210.00 in a research note issued on Friday, Marketbeat.com reports. The firm presently has an “outperform” rating on the stock. BMO Capital Markets’ price objective suggests a potential upside of 25.48% from the stock’s current price.

A number of other equities analysts also recently issued reports on ZS. UBS Group dropped their price target on Zscaler from $350.00 to $340.00 and set a “buy” rating on the stock in a research note on Wednesday, November 26th. TD Cowen decreased their price target on shares of Zscaler from $330.00 to $260.00 and set a “buy” rating on the stock in a research report on Tuesday. Scotiabank reduced their price objective on Zscaler from $334.00 to $320.00 and set a “sector outperform” rating for the company in a research note on Wednesday, November 26th. JPMorgan Chase & Co. lowered their target price on Zscaler from $354.00 to $267.00 and set an “overweight” rating on the stock in a research report on Friday, February 20th. Finally, Mizuho lowered their price objective on Zscaler from $310.00 to $265.00 and set an “outperform” rating on the stock in a research report on Tuesday, February 17th. One investment analyst has rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, seven have issued 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 an average price target of $285.68.

Zscaler Trading Up 7.5%

Shares of NASDAQ ZS opened at $167.36 on Friday. The company has a market cap of $26.69 billion, a PE ratio of -643.67, a P/E/G ratio of 317.40 and a beta of 1.02. Zscaler has a 52-week low of $141.56 and a 52-week high of $336.99. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.82 and a current ratio of 1.82. The firm’s 50 day moving average price is $200.63 and its 200-day moving average price is $256.06.

Zscaler (NASDAQ:ZS) last released its quarterly earnings data on Thursday, February 26th. The company reported $1.01 EPS for the quarter, beating the consensus estimate of $0.89 by $0.12. Zscaler had a negative return on equity of 0.12% and a negative net margin of 1.45%.The company had revenue of $815.75 million for the quarter, compared to analysts’ expectations of $798.92 million. During the same period last year, the firm posted $0.78 earnings per share. 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 research analysts expect that Zscaler will post -0.1 EPS for the current fiscal year.

Insiders Place Their Bets

In other Zscaler news, EVP Raj Judge sold 3,438 shares of Zscaler stock in a transaction on Tuesday, December 16th. The shares were sold at an average price of $230.82, for a total value of $793,559.16. Following the completion of the transaction, the executive vice president owned 70,394 shares of the company’s stock, valued at approximately $16,248,343.08. The trade was a 4.66% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director James A. Beer sold 653 shares of the firm’s stock in a transaction that occurred on Friday, January 2nd. The stock was sold at an average price of $226.72, for a total transaction of $148,048.16. Following the completion of the transaction, the director directly owned 3,485 shares in the company, valued at $790,119.20. This trade represents a 15.78% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 19,350 shares of company stock worth $4,471,509. Insiders own 17.20% of the company’s stock.

Institutional Investors Weigh In On Zscaler

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Integrated Wealth Concepts LLC grew its stake in shares of 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 stake in Zscaler by 8.2% during the 1st quarter. NewEdge Advisors LLC now owns 4,899 shares of the company’s stock worth $972,000 after buying an additional 370 shares during the period. Empowered Funds LLC lifted its holdings in Zscaler by 9.2% during the 1st quarter. Empowered Funds LLC now owns 2,811 shares of the company’s stock worth $558,000 after buying an additional 238 shares in the last quarter. Sivia Capital Partners LLC acquired a new position in shares of Zscaler in the second quarter worth $252,000. Finally, Wealthfront Advisers LLC increased its position in shares of Zscaler by 1.8% during the second quarter. Wealthfront Advisers LLC now owns 6,788 shares of the company’s stock worth $2,131,000 after acquiring an additional 118 shares during the period. 46.45% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler beat consensus on revenue and adjusted EPS, delivered 26% revenue growth and ARR up ~25% to $3.36B — proof of durable subscription demand. Zscaler Announces Strong Second-Quarter Fiscal 2026 Results; Raises Fiscal 2026 ARR Guidance to 24%
• Positive Sentiment: Management highlighted AI security expansion (AI Guard, agentic ops) and continued product traction — investors see AI monetization as a new growth pillar that can offset SaaS-seat risk. Zscaler’s AI-Powered Security: A Compelling Case For Aggressive Growth Investors
• Positive Sentiment: Zscaler opened an AI & Cyber Threat Research Center in India with Bharti Airtel — expands on‑the‑ground footprint in a large market and supports long‑term enterprise/government adoption. Zscaler Airtel AI Cyber Center Opens As Shares Trade Below Targets
• Neutral Sentiment: Analyst views are mixed post‑print: some firms reiterated buy ratings while others issued cautious/negative forecasts — leaves short‑term direction sensitive to guidance and execution. Rosenblatt Securities Reiterates Buy Rating for Zscaler (NASDAQ:ZS)
• Negative Sentiment: Despite beats, Zscaler reported a wider GAAP net loss driven by increased S&M and R&D spending and noted acquisition-related churn — that helped trigger an after‑hours selloff. Zscaler posts wider quarterly loss on higher spending; shares down 9%
• Negative Sentiment: Citation of a reduced/uncertain fiscal revenue outlook in some reports amplified investor concern, prompting volatility even though ARR and adjusted results were solid. ZScaler Stock Drops After Q2 Earnings, Lowered Revenue Guidance

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.