Zscaler (NASDAQ:ZS) Price Target Cut to $250.00 by Analysts at Mizuho

Zscaler (NASDAQ:ZS) had its price target trimmed by Mizuho from $265.00 to $250.00 in a research note issued to investors on Friday,Benzinga reports. The brokerage currently has an outperform rating on the stock.

A number of other brokerages have also recently weighed in on ZS. Loop Capital set a $320.00 price objective on shares of Zscaler in a research note on Thursday, December 11th. BMO Capital Markets dropped their price target on Zscaler from $315.00 to $210.00 and set an “outperform” rating for the company in a research report on Friday. Morgan Stanley reduced their price objective on Zscaler from $305.00 to $200.00 and set an “overweight” rating on the stock in a research report on Friday. Citizens Jmp decreased their price objective on Zscaler from $355.00 to $290.00 and set a “market outperform” rating on the stock in a research note on Friday. Finally, Cantor Fitzgerald cut their target price on shares of Zscaler from $365.00 to $300.00 and set an “overweight” rating for the company in a research note on Tuesday. One analyst has rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $274.37.

Zscaler Price Performance

Shares of NASDAQ:ZS traded down $20.37 during midday trading on Friday, hitting $146.99. 11,080,725 shares of the stock were exchanged, compared to its average volume of 3,018,555. Zscaler has a twelve month low of $140.56 and a twelve month high of $336.99. 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 50 day moving average price of $198.92 and a 200-day moving average price of $255.20. The stock has a market cap of $23.44 billion, a P/E ratio of -349.98, a PEG ratio of 341.17 and a beta of 1.02.

Zscaler (NASDAQ:ZS) last issued its quarterly earnings data on Thursday, February 26th. The company reported $1.01 EPS for the quarter, beating analysts’ consensus estimates of $0.89 by $0.12. Zscaler had a negative net margin of 2.25% and a positive return on equity of 0.06%. The firm had revenue of $815.75 million for the quarter, compared to analysts’ expectations of $798.92 million. During the same period in the prior year, the company earned $0.78 EPS. The firm’s revenue was up 25.9% on a year-over-year basis. 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, research analysts forecast that Zscaler will post -0.1 earnings per share for the current year.

Insider Activity at Zscaler

In other news, EVP Raj Judge sold 3,438 shares of the company’s stock in a transaction on Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total transaction of $793,559.16. Following the completion of the sale, the executive vice president directly owned 70,394 shares of the company’s stock, valued at $16,248,343.08. This represents a 4.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Robert Schlossman sold 2,349 shares of Zscaler stock in a transaction dated Wednesday, December 17th. The stock was sold at an average price of $232.79, for a total value of $546,823.71. Following the completion of the transaction, the insider directly owned 74,653 shares in the company, valued at $17,378,471.87. This represents a 3.05% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 19,350 shares of company stock valued at $4,471,509 over the last ninety days. Company insiders own 17.20% of the company’s stock.

Hedge Funds Weigh In On Zscaler

A number of large investors have recently made changes to their positions in the business. Binnacle Investments Inc acquired a new stake in shares of Zscaler during the third quarter worth approximately $25,000. Tradewinds Capital Management LLC lifted its position in Zscaler by 145.7% in the 3rd quarter. Tradewinds Capital Management LLC now owns 86 shares of the company’s stock worth $26,000 after buying an additional 51 shares in the last quarter. Root Financial Partners LLC acquired a new stake in shares of Zscaler during the 3rd quarter valued at $26,000. McIlrath & Eck LLC acquired a new stake in shares of Zscaler during the 3rd quarter valued at $29,000. Finally, Picton Mahoney Asset Management purchased a new position in shares of Zscaler during the 3rd quarter valued at $30,000. Institutional investors and hedge funds own 46.45% of the company’s stock.

Key Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Q2 results beat: adjusted EPS $1.01 vs. $0.89 est., revenue $815.8M vs. ~$799M est., and ARR grew ~25% year/year — signals demand momentum. GlobeNewswire: Q2 Results
• Positive Sentiment: Management is pitching AI security growth and new initiatives (AI Guard, agentic security, India AI/Cyber center with Airtel) as durable secular drivers that expand TAM beyond seat-based SaaS. CFO Interview Airtel AI Center
• Neutral Sentiment: Management issued updated forward guidance and commentary (Q3 EPS range and FY EPS range were provided), creating mixed signals that markets are parsing. Earnings Highlights
• Neutral Sentiment: Executives (CEO & CFO) gave interviews and the full call transcript is available — useful for investors wanting detail on churn, acquisitions and how AI monetization will scale. Earnings Call Transcript
• Negative Sentiment: Wider GAAP loss and higher spending: the company posted a larger net loss driven by increased sales, marketing and R&D, which pressured investor sentiment. Reuters: Wider Loss
• Negative Sentiment: Mixed/uncertain revenue outlook commentary: some outlets reported the company lowered aspects of its revenue outlook, creating confusion and weighing on the stock despite EPS beats. Benzinga: Revenue Guidance Report
• Negative Sentiment: Broad analyst price‑target cuts today from multiple firms (Canaccord, Morgan Stanley, Oppenheimer, Berenberg, Needham, and others) have amplified selling pressure even as many kept “buy/outperform” stances — the cuts compress perception of near‑term upside. MarketScreener: Analyst Cuts
• Negative Sentiment: Market reaction: investors appear to be focusing on margin/expense trajectory, competitive pressure and near-term revenue clarity rather than the company’s AI growth story — producing the stock decline. Seeking Alpha: Market Reaction

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.