Zscaler (NASDAQ:ZS) Earns Buy Rating from Canaccord Genuity Group

Zscaler (NASDAQ:ZS)‘s stock had its “buy” rating reissued by equities research analysts at Canaccord Genuity Group in a research report issued to clients and investors on Thursday,Benzinga reports. They currently have a $210.00 price objective on the stock. Canaccord Genuity Group’s price objective would indicate a potential upside of 69.06% from the company’s current price.

A number of other research firms also recently weighed in on ZS. Scotiabank cut their price target on shares of Zscaler from $190.00 to $175.00 and set a “sector outperform” rating on the stock in a research note on Wednesday, May 27th. Oppenheimer reduced their target price on shares of Zscaler from $280.00 to $250.00 and set an “outperform” rating on the stock in a report on Tuesday, March 10th. Rosenblatt Securities reaffirmed a “buy” rating and set a $200.00 price target on shares of Zscaler in a research report on Wednesday. HC Wainwright upgraded Zscaler from a “buy” rating to a “buy” rating in a report on Monday, May 18th. Finally, Needham & Company LLC reissued a “buy” rating and issued a $180.00 price objective on shares of Zscaler in a research report on Wednesday. Thirty-four analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Zscaler has an average rating of “Moderate Buy” and an average target price of $214.33.

Zscaler Stock Performance

Shares of NASDAQ:ZS traded down $0.51 on Thursday, reaching $124.22. The company’s stock had a trading volume of 1,764,566 shares, compared to its average volume of 3,583,681. The stock’s 50-day moving average is $142.97 and its two-hundred day moving average is $179.23. Zscaler has a 52-week low of $114.63 and a 52-week high of $336.99. The company has a debt-to-equity ratio of 0.72, a current ratio of 1.86 and a quick ratio of 1.86. The stock has a market capitalization of $20.09 billion, a P/E ratio of -259.61, a PEG ratio of 78.68 and a beta of 0.97.

Zscaler (NASDAQ:ZS) last released its earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.01 by $0.07. Zscaler had a negative return on equity of 0.37% and a negative net margin of 2.44%.The company had revenue of $850.48 million for the quarter, compared to analysts’ expectations of $835.14 million. During the same quarter in the previous year, the firm posted $0.84 EPS. The firm’s quarterly revenue was up 25.4% on a year-over-year basis. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. As a group, sell-side analysts forecast that Zscaler will post 0.11 EPS for the current year.

Insider Activity

In related news, insider Adam Geller sold 2,094 shares of the business’s stock in a transaction that occurred on Wednesday, March 18th. The shares were sold at an average price of $153.53, for a total transaction of $321,491.82. Following the transaction, the insider directly owned 46,949 shares of the company’s stock, valued at approximately $7,208,079.97. The trade was a 4.27% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, EVP Raj Judge sold 2,488 shares of the business’s stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total transaction of $389,595.92. Following the completion of the sale, the executive vice president directly owned 67,906 shares of the company’s stock, valued at $10,633,400.54. This represents a 3.53% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 12,130 shares of company stock valued at $1,892,487 in the last three months. 17.20% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Zscaler

Hedge funds have recently made changes to their positions in the business. Caerus Investment Advisors LLC grew its holdings in shares of Zscaler by 37.8% in the 1st quarter. Caerus Investment Advisors LLC now owns 1,444 shares of the company’s stock worth $203,000 after purchasing an additional 396 shares during the last quarter. Front Row Advisors LLC grew its holdings in shares of Zscaler by 24.1% in the 1st quarter. Front Row Advisors LLC now owns 809 shares of the company’s stock worth $113,000 after purchasing an additional 157 shares during the last quarter. Western Wealth Management LLC bought a new stake in shares of Zscaler in the 1st quarter worth about $33,000. Bank of America Corp DE grew its holdings in shares of Zscaler by 44.3% in the 1st quarter. Bank of America Corp DE now owns 779,245 shares of the company’s stock worth $109,320,000 after purchasing an additional 239,326 shares during the last quarter. Finally, Edgestream Partners L.P. grew its holdings in shares of Zscaler by 95.9% in the 1st quarter. Edgestream Partners L.P. now owns 1,992 shares of the company’s stock worth $279,000 after purchasing an additional 975 shares during the last quarter. 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: Analysts from Wedbush, RBC, Guggenheim, Rosenblatt and Needham reiterated bullish ratings and raised price targets, signaling Wall Street still sees substantial upside from current levels.
• Positive Sentiment: At Zenith Live 2026, Zscaler unveiled new AI-security products, including its ZAgent Framework, AI Broker, and Endpoint AI Security, and expanded its zero-trust platform to protect agentic AI, unmanaged devices, B2B partners and multi-cloud workloads.
• Positive Sentiment: The company also announced partnerships and ecosystem expansion with Saviynt and Oasis Security, reinforcing its positioning in identity-centric zero trust and AI security.
• Positive Sentiment: Zscaler research and management commentary continue to support the long-term AI security thesis, arguing that the rise of autonomous AI agents creates a large new market for cybersecurity protection.
• Neutral Sentiment: Media coverage around the annual event highlighted AI opportunities and generally positive product momentum, but this was largely reiteration of the company’s existing strategy rather than a near-term financial catalyst.
• Negative Sentiment: Bearish articles said Zscaler is trading near a 52-week low and suggested FY27 guidance implies slower growth, which is weighing on sentiment despite the long-term AI narrative.
• Negative Sentiment: Law firms announced securities-law investigations and investor alerts tied to recent stock declines, adding legal overhang and keeping pressure on the shares.
• Negative Sentiment: Several market recaps pointed to broad weakness in software/growth stocks and noted Zscaler’s sharp year-to-date pullback, which suggests investors are still de-risking high-multiple names.

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.