Zscaler (NASDAQ:ZS) Given “Buy” Rating at TD Cowen

Zscaler (NASDAQ:ZS)‘s stock had its “buy” rating reaffirmed by equities researchers at TD Cowen in a report issued on Friday, Benzinga reports. They presently have a $200.00 target price on the stock. TD Cowen’s price objective indicates a potential upside of 15.95% from the stock’s current price.

A number of other research firms have also issued reports on ZS. JPMorgan Chase & Co. boosted their target price on shares of Zscaler from $205.00 to $215.00 and gave the company an “overweight” rating in a research note on Wednesday, August 26th. Rosenblatt Securities reissued a “buy” rating and issued a $200.00 price objective on shares of Zscaler in a report on Friday. Needham & Company LLC lifted their target price on Zscaler from $180.00 to $215.00 and gave the company a “buy” rating in a research note on Friday. UBS Group lowered their price target on Zscaler from $260.00 to $225.00 and set a “buy” rating on the stock in a report on Wednesday, May 27th. Finally, Royal Bank Of Canada reissued an “outperform” rating on shares of Zscaler in a research note on Friday. Thirty-four research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Zscaler presently has a consensus rating of “Moderate Buy” and an average target price of $217.08.

Zscaler Price Performance

Shares of ZS stock opened at $172.49 on Friday. The firm has a fifty day moving average of $160.51 and a two-hundred day moving average of $150.39. The firm has a market cap of $27.89 billion, a P/E ratio of -365.98, a P/E/G ratio of 101.67 and a beta of 0.95. Zscaler has a 1-year low of $114.63 and a 1-year 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.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings results on Thursday, September 3rd. The company reported $1.19 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.09 by $0.10. Zscaler had a negative return on equity of 0.37% and a negative net margin of 2.44%.The business had revenue of $898.18 million for the quarter, compared to analyst estimates of $876.96 million. During the same period in the prior year, the company posted $0.89 EPS. The business’s revenue was up 24.9% compared to the same quarter last year. Zscaler has set its FY 2027 guidance at 4.860-4.900 EPS and its Q1 2027 guidance at 1.150-1.160 EPS. As a group, research analysts anticipate that Zscaler will post 0.13 earnings per share for the current fiscal year.

Insider Activity

In other Zscaler news, insider Adam Geller sold 2,817 shares of the firm’s stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $122.60, for a total value of $345,364.20. Following the completion of the transaction, the insider directly owned 42,314 shares in the company, valued at $5,187,696.40. This trade represents a 6.24% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Kevin Rubin sold 503 shares of the business’s stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $173.38, for a total transaction of $87,210.14. Following the sale, the chief financial officer owned 40,895 shares in the company, valued at $7,090,375.10. This represents a 1.22% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 16,772 shares of company stock valued at $2,139,799 over the last ninety days. Corporate insiders own 17.20% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of ZS. Binnacle Investments Inc bought a new position in shares of Zscaler during the third quarter valued at $25,000. AlphaCentric Advisors LLC bought a new position in Zscaler during the 4th quarter valued at about $29,000. University of Texas Texas AM Investment Management Co. acquired a new position in Zscaler in the fourth quarter valued at about $30,000. Mcguire Capital Advisors Inc. bought a new stake in Zscaler during the fourth quarter worth about $32,000. Finally, Strive Financial Group LLC bought a new stake in Zscaler during the fourth quarter worth about $39,000. 46.45% of the stock is owned by institutional investors and hedge funds.

Zscaler News Roundup

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Results exceeded expectations. Zscaler reported fiscal Q4 revenue of $898.2 million, up 24.9% year over year and above the $877.0 million consensus estimate. Non-GAAP earnings of $1.19 per share also topped expectations of $1.09. Zscaler Q4 Earnings and Revenues Top Estimates
• Positive Sentiment: Profitability and enterprise demand improved. Q4 non-GAAP operating margin reached a record 24%, while annual recurring revenue rose 25% to $3.77 billion. Large-deal activity increased, Fortune 500 penetration reached 50%, and net retention was 115%, supporting continued customer expansion. Zscaler Announces Strong Fourth Quarter and Fiscal 2026 Financial Results
• Positive Sentiment: Analysts raised targets. Stephens increased its target to $225 and Needham raised its target to $215; Cantor Fitzgerald maintained an overweight rating and a $225 target, while Rosenblatt reiterated buy with a $200 target.
• Neutral Sentiment: AI remains a growth opportunity. Management highlighted momentum for Agentic SecOps and security products designed for AI workloads, but investors are awaiting evidence that these offerings can reaccelerate growth.
• Negative Sentiment: Fiscal 2027 growth is expected to slow. Zscaler forecast revenue growth of 16.6%-17.5% and ARR growth of 16.6%-17.4%, down from 25% in fiscal 2026. This deceleration overshadowed the better-than-expected quarterly results, particularly because full-year revenue guidance was broadly in line with consensus. Zscaler Forecasts Fiscal 2027 Growth
• Negative Sentiment: Restructuring and cash-flow concerns add pressure. The company plans to eliminate about 3% of its workforce as it reallocates resources toward AI and growth initiatives. Q4 free-cash-flow margin fell to 7% from 24% a year earlier because of significantly higher capital spending, while Zscaler remains GAAP unprofitable.
• Negative Sentiment: Some investors question the valuation case. Although ZS trades at a historically lower forward multiple, analysts note that its projected growth lacks the acceleration seen at some AI-focused cybersecurity peers.

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.