Zscaler (NASDAQ:ZS) Given New $200.00 Price Target at Morgan Stanley

Zscaler (NASDAQ:ZS) had its target price lowered by Morgan Stanley from $305.00 to $200.00 in a report issued on Friday morning,MarketScreener reports. The brokerage currently has an overweight rating on the stock.

A number of other equities analysts have also recently issued reports on the stock. Mizuho lowered their price objective on shares of Zscaler from $310.00 to $265.00 and set an “outperform” rating for the company in a research report on Tuesday, February 17th. Bank of America cut their target price on Zscaler from $355.00 to $335.00 and set a “buy” rating on the stock in a research report on Wednesday, November 26th. JPMorgan Chase & Co. dropped their price objective on shares of Zscaler from $354.00 to $267.00 and set an “overweight” rating on the stock in a report on Friday, February 20th. Cantor Fitzgerald reduced their target price on Zscaler from $365.00 to $300.00 and set an “overweight” rating for the company in a research note on Tuesday. Finally, TD Cowen dropped their price target on Zscaler from $330.00 to $260.00 and set a “buy” rating on the stock in a research note on Tuesday. One research analyst has rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, six have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $274.37.

Zscaler Stock Down 12.2%

Shares of ZS traded down $20.37 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 firm’s fifty day moving average price is $198.92 and its 200-day moving average price is $255.20. The firm has a market capitalization of $23.44 billion, a price-to-earnings ratio of -349.98, a P/E/G ratio of 341.17 and a beta of 1.02. The company has a quick ratio of 1.82, a current ratio of 1.82 and a debt-to-equity ratio of 0.86.

Zscaler (NASDAQ:ZS) last announced its quarterly earnings data on Thursday, February 26th. The company reported $1.01 earnings per share for the quarter, beating the consensus estimate of $0.89 by $0.12. Zscaler had a positive return on equity of 0.06% and a negative net margin of 2.25%.The company had revenue of $815.75 million during the quarter, compared to analysts’ expectations of $798.92 million. During the same quarter last year, the company earned $0.78 EPS. Zscaler’s revenue for the quarter 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 year.

Insider Buying and Selling at Zscaler

In other Zscaler news, insider Robert Schlossman sold 2,349 shares of the stock in a transaction that occurred on Wednesday, December 17th. The shares were sold at an average price of $232.79, for a total transaction of $546,823.71. Following the transaction, the insider directly owned 74,653 shares in the company, valued at $17,378,471.87. This trade represents a 3.05% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Jagtar Singh Chaudhry sold 2,843 shares of the stock in a transaction that occurred on Tuesday, December 16th. The shares were sold at an average price of $230.82, for a total value of $656,221.26. Following the sale, the chief executive officer directly owned 347,857 shares of the company’s stock, valued at approximately $80,292,352.74. This trade represents a 0.81% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 19,350 shares of company stock worth $4,471,509 in the last ninety days. Insiders own 17.20% of the company’s stock.

Institutional Trading of Zscaler

Several large investors have recently added to or reduced their stakes in the stock. Westpac Banking Corp raised its stake in shares of Zscaler by 919.0% during the 3rd quarter. Westpac Banking Corp now owns 9,986 shares of the company’s stock worth $2,992,000 after purchasing an additional 9,006 shares in the last quarter. VestGen Advisors LLC bought a new position in Zscaler in the second quarter valued at about $1,592,000. Mackenzie Financial Corp raised its position in Zscaler by 133.6% in the second quarter. Mackenzie Financial Corp now owns 14,780 shares of the company’s stock valued at $4,640,000 after purchasing an additional 8,454 shares during the last quarter. Schroder Investment Management Group increased its holdings in Zscaler by 11.5% in the second quarter. Schroder Investment Management Group now owns 164,061 shares of the company’s stock valued at $51,505,000 after purchasing an additional 16,868 shares during the period. Finally, Ensign Peak Advisors Inc lifted its stake in shares of Zscaler by 9.9% in the second quarter. Ensign Peak Advisors Inc now owns 395,391 shares of the company’s stock worth $124,129,000 after acquiring an additional 35,770 shares during the period. 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

About Zscaler

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.