Zscaler (NASDAQ:ZS) Price Target Cut to $205.00 by Analysts at Royal Bank Of Canada

Zscaler (NASDAQ:ZS) had its price objective lowered by stock analysts at Royal Bank Of Canada from $250.00 to $205.00 in a research report issued to clients and investors on Friday,Benzinga reports. The firm presently has an “outperform” rating on the stock. Royal Bank Of Canada’s price objective indicates a potential upside of 41.24% from the stock’s current price.

Other analysts have also recently issued research reports about the company. UBS Group dropped their target price on Zscaler from $350.00 to $340.00 and set a “buy” rating on the stock in a research report on Wednesday, November 26th. Oppenheimer dropped their price objective on Zscaler from $345.00 to $280.00 and set an “outperform” rating on the stock in a research report on Friday. Macquarie Infrastructure assumed coverage on shares of Zscaler in a report on Friday, October 31st. They issued an “outperform” rating and a $390.00 target price for the company. Needham & Company LLC lowered their price target on shares of Zscaler from $310.00 to $180.00 and set a “buy” rating on the stock in a report on Friday. Finally, JPMorgan Chase & Co. cut their price objective on shares of Zscaler from $354.00 to $267.00 and set an “overweight” rating on the stock in a research report on Friday, February 20th. One analyst has rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $276.08.

Zscaler Trading Down 13.3%

Shares of Zscaler stock traded down $22.22 on Friday, hitting $145.14. 7,624,489 shares of the company traded hands, compared to its average volume of 2,610,979. Zscaler has a 52 week low of $140.56 and a 52 week high of $336.99. The company has a market cap of $23.15 billion, a PE ratio of -558.20, a PEG ratio of 317.40 and a beta of 1.02. The stock’s 50 day moving average price is $200.63 and its 200-day moving average price is $256.06. The company has a current ratio of 1.82, a quick ratio of 1.82 and a debt-to-equity ratio of 0.86.

Zscaler (NASDAQ:ZS) last posted its earnings results on Thursday, February 26th. The company reported $1.01 EPS for the quarter, beating analysts’ consensus estimates of $0.89 by $0.12. Zscaler had a negative net margin of 1.45% and a negative return on equity of 0.12%. The business had revenue of $815.75 million for the quarter, compared to the consensus estimate of $798.92 million. During the same quarter last year, the firm posted $0.78 EPS. The company’s revenue for the quarter was up 25.9% on a year-over-year basis. Zscaler has set its Q3 2026 guidance at 1.000-1.010 EPS and its FY 2026 guidance at 3.990-4.020 EPS. Equities research analysts predict that Zscaler will post -0.1 EPS for the current year.

Insiders Place Their Bets

In related news, EVP Raj Judge sold 3,438 shares of Zscaler stock in a transaction that occurred on Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total transaction of $793,559.16. Following the completion of the transaction, the executive vice president directly owned 70,394 shares in the company, valued at approximately $16,248,343.08. This trade represents a 4.66% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Robert Schlossman sold 2,349 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 $546,823.71. Following the completion of the transaction, the insider directly owned 74,653 shares of the company’s stock, valued at $17,378,471.87. The trade was a 3.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 19,350 shares of company stock worth $4,471,509. Company insiders own 17.20% of the company’s stock.

Institutional Trading of Zscaler

Hedge funds have recently added to or reduced their stakes in the company. Binnacle Investments Inc purchased a new position in Zscaler during the third quarter worth approximately $25,000. Tradewinds Capital Management LLC grew its position in Zscaler by 145.7% in the third quarter. Tradewinds Capital Management LLC now owns 86 shares of the company’s stock worth $26,000 after acquiring an additional 51 shares during the period. Root Financial Partners LLC acquired a new stake in shares of Zscaler during the 3rd quarter worth about $26,000. McIlrath & Eck LLC purchased a new stake in shares of Zscaler in the 3rd quarter valued at approximately $29,000. Finally, Picton Mahoney Asset Management purchased a new position in shares of Zscaler during the third quarter worth $30,000. 46.45% of the stock is owned by hedge funds and other institutional investors.

Zscaler News Summary

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Q2 results beat estimates: Zscaler reported $1.01 EPS vs. $0.89 expected, revenue ~$815.8M (above consensus) and ARR growth of ~25%; the company raised ARR guidance for fiscal 2026. Zscaler Q2 results press release
• Positive Sentiment: AI strategy and product momentum: management highlighted agentic AI ambitions (“50–100 AI agents” per employee) on CNBC and the company opened an AI & Cyber Threat Research Center in India with Bharti Airtel — initiatives that could expand monetization beyond seat-based SaaS. Zscaler CEO CNBC interview AI Cyber Center with Airtel
• Neutral Sentiment: Earnings materials and call transcripts are available for investors wanting detail (revenue/ARR growth, cash-flow improvement). Useful for modeling longer-term margins vs. near-term spending. Earnings call transcript
• Negative Sentiment: Wider net loss and guidance concerns: Zscaler reported a larger GAAP loss driven by higher sales/marketing and R&D spend; some outlets report the company trimmed or adjusted its fiscal revenue outlook, which pressured sentiment and triggered selling. Reuters: wider loss, higher spending
• Negative Sentiment: Broad analyst price-target cuts and mixed ratings today — multiple firms trimmed targets (examples: Morgan Stanley, Berenberg, Oppenheimer, Mizuho, BMO, Needham, Piper Sandler, Citizens Jmp) even when many left buy/outperform stances. The wave of lower targets amplified downside pressure. MarketScreener: Berenberg cut Benzinga coverage of analyst moves
• Negative Sentiment: Short-term investor reaction: Despite operational beats, the combination of increased discretionary spending, a larger GAAP loss, and clustered PT cuts produced a classic “sell the news” reaction in software stocks this week. Barron’s: stock 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.