Zscaler (NASDAQ:ZS) Price Target Cut to $275.00 by Analysts at Canaccord Genuity Group

Zscaler (NASDAQ:ZS) had its price target decreased by Canaccord Genuity Group from $340.00 to $275.00 in a research report sent to investors on Friday,Benzinga reports. Canaccord Genuity Group currently has a buy rating on the stock.

ZS has been the subject of several other research reports. Stifel Nicolaus decreased their price objective on shares of Zscaler from $330.00 to $320.00 and set a “buy” rating for the company in a research note on Wednesday, November 26th. Cantor Fitzgerald decreased their target price on Zscaler from $365.00 to $300.00 and set an “overweight” rating for the company in a research report on Tuesday. BTIG Research dropped their price target on Zscaler from $365.00 to $209.00 and set a “buy” rating on the stock in a research note on Tuesday. Barclays set a $220.00 price objective on Zscaler in a research note on Thursday, February 19th. Finally, UBS Group decreased their price objective on Zscaler from $350.00 to $340.00 and set a “buy” rating for the company in a report on Wednesday, November 26th. One investment analyst has rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, six have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $274.37.

Zscaler Stock Down 12.2%

Shares of NASDAQ:ZS traded down $20.37 during trading on Friday, hitting $146.99. The company’s stock had a trading volume of 11,080,725 shares, compared to its average volume of 3,018,555. Zscaler has a fifty-two week low of $140.56 and a fifty-two week high of $336.99. The business has a 50 day moving average price of $198.92 and a two-hundred day moving average price of $255.20. 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 company has a market capitalization of $23.44 billion, a PE ratio of -349.98, a P/E/G ratio of 341.17 and a beta of 1.02.

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, topping analysts’ consensus estimates of $0.89 by $0.12. The company had revenue of $815.75 million during the quarter, compared to the consensus estimate of $798.92 million. Zscaler had a negative net margin of 2.25% and a positive return on equity of 0.06%. The firm’s quarterly revenue was up 25.9% on a year-over-year basis. During the same quarter 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. As a group, research analysts expect that Zscaler will post -0.1 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider Adam Geller sold 1,620 shares of the business’s stock in a transaction that occurred on Wednesday, December 17th. The shares were sold at an average price of $232.79, for a total value of $377,119.80. Following the completion of the transaction, the insider owned 50,528 shares of the company’s stock, valued at $11,762,413.12. The trade was a 3.11% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director James A. Beer sold 653 shares of the stock in a transaction on 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 in the company, valued at approximately $790,119.20. This represents a 15.78% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 19,350 shares of company stock worth $4,471,509. 17.20% of the stock is owned by company insiders.

Hedge Funds Weigh In On Zscaler

Institutional investors and hedge funds have recently bought and sold shares of the stock. Integrated Wealth Concepts LLC lifted its stake in 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 during the last quarter. NewEdge Advisors LLC increased its holdings in shares of Zscaler by 8.2% in the 1st quarter. NewEdge Advisors LLC now owns 4,899 shares of the company’s stock worth $972,000 after acquiring an additional 370 shares during the period. Empowered Funds LLC boosted its stake in Zscaler by 9.2% during the 1st quarter. Empowered Funds LLC now owns 2,811 shares of the company’s stock valued at $558,000 after purchasing an additional 238 shares during the period. Sivia Capital Partners LLC bought a new position in Zscaler in the 2nd quarter worth about $252,000. Finally, Wealthfront Advisers LLC increased its stake in shares of Zscaler by 1.8% in the second quarter. Wealthfront Advisers LLC now owns 6,788 shares of the company’s stock valued at $2,131,000 after purchasing an additional 118 shares during the period. 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: 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.