Zscaler (NASDAQ:ZS) Price Target Lowered to $180.00 at Needham & Company LLC

Zscaler (NASDAQ:ZS) had its target price reduced by Needham & Company LLC from $310.00 to $180.00 in a report issued on Friday morning,Benzinga reports. They currently have a buy rating on the stock.

ZS has been the subject of a number of other reports. Citizens Jmp reissued a “market outperform” rating and set a $355.00 price objective on shares of Zscaler in a report on Wednesday, November 26th. Loop Capital set a $320.00 price target on shares of Zscaler in a report on Thursday, December 11th. JPMorgan Chase & Co. decreased their price objective on shares of Zscaler from $354.00 to $267.00 and set an “overweight” rating on the stock in a research note on Friday, February 20th. Wedbush lifted their target price on shares of Zscaler from $330.00 to $350.00 and gave the company an “outperform” rating in a research note on Monday, November 10th. Finally, Sanford C. Bernstein upgraded Zscaler from a “market perform” rating to an “outperform” rating and set a $228.00 price target on the stock in a research report on Friday, February 13th. One equities 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. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $274.37.

Zscaler Price Performance

NASDAQ ZS traded down $20.37 on Friday, reaching $146.99. The company’s stock had a trading volume of 11,080,725 shares, compared to its average volume of 3,018,555. The firm has a market cap of $23.44 billion, a PE ratio of -349.98, a price-to-earnings-growth ratio of 341.17 and a beta of 1.02. The business has a 50-day moving average price of $198.92 and a 200 day moving average price of $255.20. Zscaler has a 52 week low of $140.56 and a 52 week high of $336.99. 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 released its quarterly earnings data on Thursday, February 26th. The company reported $1.01 earnings per share for the quarter, beating analysts’ consensus estimates 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 for the quarter, compared to the consensus estimate of $798.92 million. During the same period in the previous year, the business earned $0.78 earnings per share. The company’s quarterly revenue 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. Sell-side analysts expect that Zscaler will post -0.1 EPS for the current year.

Insider Activity

In other Zscaler news, CEO Jagtar Singh Chaudhry sold 2,843 shares of the company’s stock in a transaction dated Tuesday, December 16th. The shares were sold at an average price of $230.82, for a total transaction of $656,221.26. Following the transaction, the chief executive officer directly owned 347,857 shares in the company, valued at approximately $80,292,352.74. This represents a 0.81% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director James A. Beer sold 653 shares of the firm’s stock in a transaction dated Friday, January 2nd. The shares were sold at an average price of $226.72, for a total transaction of $148,048.16. Following the completion of the transaction, the director directly owned 3,485 shares in the company, valued at $790,119.20. This trade represents a 15.78% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 19,350 shares of company stock worth $4,471,509. Corporate insiders own 17.20% of the company’s stock.

Institutional Trading of Zscaler

Institutional investors and hedge funds have recently made changes to their positions in the business. Binnacle Investments Inc bought a new position in Zscaler during the 3rd quarter worth approximately $25,000. Tradewinds Capital Management LLC boosted its position in shares of Zscaler by 145.7% during the third quarter. Tradewinds Capital Management LLC now owns 86 shares of the company’s stock worth $26,000 after purchasing an additional 51 shares in the last quarter. Root Financial Partners LLC bought a new stake in shares of Zscaler in the 3rd quarter valued at $26,000. McIlrath & Eck LLC bought a new stake in shares of Zscaler in the 3rd quarter valued at $29,000. Finally, AlphaCentric Advisors LLC bought a new position in Zscaler during the fourth quarter worth about $29,000. Institutional investors own 46.45% of the company’s stock.

Zscaler News Roundup

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.