Zscaler (NASDAQ:ZS) Receives Neutral Rating from Guggenheim

Zscaler (NASDAQ:ZS)‘s stock had its “neutral” rating reaffirmed by stock analysts at Guggenheim in a research note issued on Wednesday,Benzinga reports.

Several other equities analysts have also recently issued reports on ZS. Evercore set a $155.00 price objective on shares of Zscaler in a research note on Wednesday. BTIG Research reissued a “neutral” rating on shares of Zscaler in a research note on Thursday, April 9th. Truist Financial set a $200.00 target price on Zscaler in a research report on Wednesday. HC Wainwright upgraded Zscaler from a “buy” rating to a “buy” rating in a research report on Monday, May 18th. Finally, Sanford C. Bernstein dropped their price target on Zscaler from $228.00 to $224.00 and set an “outperform” rating on the stock in a research note on Wednesday. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, seven have issued a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $234.91.

Zscaler Stock Down 25.8%

ZS stock opened at $136.97 on Wednesday. The firm’s 50-day moving average is $145.75 and its two-hundred day moving average is $192.65. The company has a market capitalization of $22.02 billion, a price-to-earnings ratio of -326.75 and a beta of 0.96. Zscaler has a 52 week low of $114.63 and a 52 week high of $336.99. The company has a current ratio of 1.90, a quick ratio of 1.90 and a debt-to-equity ratio of 0.78.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings data on Tuesday, May 26th. The company reported $1.08 EPS for the quarter, beating analysts’ consensus estimates of $1.01 by $0.07. The business had revenue of $850.48 million for the quarter, compared to analyst estimates of $835.60 million. Zscaler had a negative net margin of 2.25% and a positive return on equity of 0.06%. The business’s revenue for the quarter was up 25.4% on a year-over-year basis. During the same quarter last year, the business earned $0.84 earnings per share. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. On average, analysts forecast that Zscaler will post -0.03 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Zscaler news, EVP Raj Judge sold 2,488 shares of Zscaler stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total value of $389,595.92. Following the completion of the transaction, the executive vice president owned 67,906 shares in the company, valued at approximately $10,633,400.54. The trade was a 3.53% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Robert Schlossman sold 2,263 shares of the company’s stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total value of $354,363.17. Following the completion of the sale, the insider owned 72,390 shares of the company’s stock, valued at $11,335,550.10. This represents a 3.03% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 12,130 shares of company stock valued at $1,892,487 in the last quarter. Insiders own 17.20% of the company’s stock.

Hedge Funds Weigh In On Zscaler

A number of hedge funds have recently bought and sold shares of the business. Bessemer Group Inc. increased its position in Zscaler by 3.2% in the 3rd quarter. Bessemer Group Inc. now owns 1,021 shares of the company’s stock valued at $306,000 after acquiring an additional 32 shares during the period. Wedbush Securities Inc. boosted its holdings in Zscaler by 0.7% during the third quarter. Wedbush Securities Inc. now owns 5,129 shares of the company’s stock worth $1,537,000 after purchasing an additional 34 shares during the last quarter. Goldstream Capital Management Ltd grew its holdings in shares of Zscaler by 0.3% in the third quarter. Goldstream Capital Management Ltd now owns 12,450 shares of the company’s stock valued at $3,731,000 after acquiring an additional 34 shares in the last quarter. Kentucky Retirement Systems Insurance Trust Fund increased its position in shares of Zscaler by 1.4% during the third quarter. Kentucky Retirement Systems Insurance Trust Fund now owns 2,569 shares of the company’s stock valued at $770,000 after acquiring an additional 36 shares during the last quarter. Finally, Advisor OS LLC increased its position in shares of Zscaler by 4.6% during the third quarter. Advisor OS LLC now owns 879 shares of the company’s stock valued at $263,000 after acquiring an additional 39 shares during the last quarter. 46.45% of the stock is owned by institutional investors.

Key Headlines Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler reported fiscal Q3 revenue of $850.5 million and EPS of $1.08, both above estimates, while revenue rose 25% year over year and ARR also grew 25%, reinforcing the company’s strong core demand. Article: Zscaler Announces Strong Third-Quarter Fiscal 2026 Results
• Positive Sentiment: Management raised FY26 guidance and pointed to strength in AI security and record margins, which supports the long-term growth narrative for the cybersecurity platform. Article: ZS Q3 Earnings Call Flags Prudent Growth Outlook
• Positive Sentiment: Several analysts still view the stock favorably despite trimming targets, with Rosenblatt, Bernstein, Baird, and Needham maintaining bullish or buy-equivalent ratings, suggesting Wall Street still sees upside from current levels. Article: Analyst target updates
• Neutral Sentiment: New commentary on Zscaler’s AI security strategy and product expansion adds to the growth story, but also notes the stock may still need stronger execution to justify its valuation. Article: As Zscaler Doubles Down on AI Security, ZS Stock Still Needs More to Justify Its Steep Valuation
• Negative Sentiment: Despite the beat, Zscaler’s guidance disappointed traders: the company forecast fourth-quarter revenue slightly below estimates, and Reuters said the outlook reflected intensifying competition in cybersecurity and more cautious enterprise spending. Article: Zscaler sees downbeat quarterly revenue as competition heats up in cybersecurity market
• Negative Sentiment: Some recent analyst notes turned more cautious, including a Seeking Alpha downgrade citing slowing organic growth, weaker net-new ARR momentum, and competitive pressure from integrated security platforms. Article: Zscaler Q1: I Was Right (Rating Downgrade)

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.