Zscaler (NASDAQ:ZS) Price Target Lowered to $225.00 at Cantor Fitzgerald

Zscaler (NASDAQ:ZS) had its price objective decreased by stock analysts at Cantor Fitzgerald from $300.00 to $225.00 in a note issued to investors on Wednesday, MarketBeat.com reports. The firm currently has an “overweight” rating on the stock. Cantor Fitzgerald’s price target would indicate a potential upside of 73.56% from the company’s current price.

A number of other equities research analysts have also issued reports on the company. BTIG Research reiterated a “neutral” rating on shares of Zscaler in a research note on Thursday, April 9th. Wells Fargo & Company initiated coverage on Zscaler in a research report on Tuesday, March 3rd. They issued an “overweight” rating and a $200.00 price objective on the stock. Robert W. Baird dropped their price objective on Zscaler from $265.00 to $230.00 and set an “outperform” rating for the company in a research note on Wednesday. Sanford C. Bernstein cut their target price on Zscaler from $228.00 to $224.00 and set an “outperform” rating for the company in a research report on Wednesday. Finally, Zacks Research downgraded Zscaler from a “hold” rating to a “strong sell” rating in a research note on Wednesday, April 29th. Two analysts have rated the stock with a Strong Buy rating, thirty have assigned a Buy rating, eight have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $226.58.

Zscaler Stock Performance

NASDAQ ZS traded down $54.97 on Wednesday, reaching $129.64. 8,706,504 shares of the stock were exchanged, compared to its average volume of 2,919,019. 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 has a one year low of $114.63 and a one year high of $336.99. The firm has a market capitalization of $20.84 billion, a PE ratio of -308.17 and a beta of 0.96. The company’s 50-day simple moving average is $145.75 and its two-hundred day simple moving average is $192.65.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share for the quarter, topping analysts’ consensus estimates of $1.01 by $0.07. The business had revenue of $850.48 million during 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 company’s revenue was up 25.4% on a year-over-year basis. During the same period in the prior year, the business posted $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. Analysts expect that Zscaler will post -0.03 EPS for the current fiscal year.

Insider Buying and Selling at Zscaler

In related news, CFO Kevin Rubin sold 1,682 shares of the firm’s stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total value of $263,384.38. Following the completion of the transaction, the chief financial officer directly owned 46,479 shares of the company’s stock, valued at approximately $7,278,146.61. This trade represents a 3.49% decrease in their ownership of the stock. The transaction 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 on Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total transaction of $354,363.17. Following the sale, the insider directly owned 72,390 shares in the company, valued at approximately $11,335,550.10. The trade was a 3.03% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 12,130 shares of company stock worth $1,892,487. Company insiders own 17.20% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Westpac Banking Corp increased its position in shares of Zscaler by 919.0% during the 3rd quarter. Westpac Banking Corp now owns 9,986 shares of the company’s stock valued at $2,992,000 after purchasing an additional 9,006 shares during the last quarter. Korea Investment CORP lifted its position in Zscaler by 24.0% in the third quarter. Korea Investment CORP now owns 98,370 shares of the company’s stock worth $29,478,000 after buying an additional 19,026 shares during the last quarter. Vinva Investment Management Ltd boosted its stake in Zscaler by 136.1% during the third quarter. Vinva Investment Management Ltd now owns 11,347 shares of the company’s stock worth $3,400,000 after buying an additional 6,541 shares during the period. Oxbow Advisors LLC purchased a new position in Zscaler during the fourth quarter worth $2,939,000. Finally, Handelsbanken Fonder AB increased its position in Zscaler by 43.1% during the third quarter. Handelsbanken Fonder AB now owns 55,907 shares of the company’s stock valued at $16,753,000 after acquiring an additional 16,839 shares during the last quarter. 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: 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.