Zscaler (NASDAQ:ZS) Price Target Lowered to $290.00 at Citizens Jmp

Zscaler (NASDAQ:ZS) had its price target cut by Citizens Jmp from $355.00 to $290.00 in a report issued on Friday,Benzinga reports. The firm presently has a “market outperform” rating on the stock. Citizens Jmp’s price target would suggest a potential upside of 96.62% from the stock’s previous close.

A number of other research analysts have also issued reports on the stock. Bank of America reduced their target price on shares of Zscaler from $355.00 to $335.00 and set a “buy” rating for the company in a research note on Wednesday, November 26th. UBS Group cut their price target on Zscaler from $350.00 to $340.00 and set a “buy” rating on the stock in a report on Wednesday, November 26th. Piper Sandler decreased their price objective on Zscaler from $260.00 to $185.00 and set a “neutral” rating for the company in a report on Friday. Macquarie Infrastructure assumed coverage on Zscaler in a research report on Friday, October 31st. They issued an “outperform” rating and a $390.00 target price on the stock. Finally, BMO Capital Markets cut their target price on Zscaler from $315.00 to $210.00 and set an “outperform” rating on the stock in a research note on Friday. One analyst has rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $283.97.

Zscaler Stock Performance

Shares of NASDAQ:ZS opened at $147.50 on Friday. Zscaler has a 12 month low of $141.56 and a 12 month high of $336.99. The business has a 50-day moving average of $200.63 and a two-hundred day moving average of $256.06. The company has a debt-to-equity ratio of 0.86, a current ratio of 1.82 and a quick ratio of 1.82. The firm has a market capitalization of $23.52 billion, a PE ratio of -567.27, a P/E/G ratio of 317.40 and a beta of 1.02.

Zscaler (NASDAQ:ZS) last released its quarterly earnings results on Thursday, February 26th. The company reported $1.01 earnings per share for the quarter, topping analysts’ consensus estimates of $0.89 by $0.12. Zscaler had a negative return on equity of 0.12% and a negative net margin of 1.45%.The firm had revenue of $815.75 million during the quarter, compared to analysts’ expectations of $798.92 million. During the same quarter in the prior year, the business earned $0.78 EPS. Zscaler’s quarterly revenue was up 25.9% compared to the same quarter last year. Zscaler has set its Q3 2026 guidance at 1.000-1.010 EPS and its FY 2026 guidance at 3.990-4.020 EPS. As a group, research analysts forecast that Zscaler will post -0.1 earnings per share for the current year.

Insiders Place Their Bets

In related news, insider Adam Geller sold 1,620 shares of the company’s stock in a transaction on Wednesday, December 17th. The shares were sold at an average price of $232.79, for a total transaction of $377,119.80. Following the completion of the sale, the insider directly owned 50,528 shares of the company’s stock, valued at approximately $11,762,413.12. This represents a 3.11% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director James A. Beer sold 653 shares of the business’s stock in a transaction on Friday, January 2nd. The stock was sold at an average price of $226.72, for a total transaction of $148,048.16. Following 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. Insiders have sold 19,350 shares of company stock worth $4,471,509 in the last 90 days. 17.20% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of ZS. Virtu Financial LLC bought a new position in shares of Zscaler during the fourth quarter worth $2,305,000. Sunbelt Securities Inc. raised its holdings in shares of Zscaler by 92.9% in the fourth quarter. Sunbelt Securities Inc. now owns 3,755 shares of the company’s stock valued at $845,000 after purchasing an additional 1,808 shares during the last quarter. Kovitz Investment Group Partners LLC boosted its stake in shares of Zscaler by 618.0% during the 4th quarter. Kovitz Investment Group Partners LLC now owns 6,785 shares of the company’s stock worth $1,526,000 after buying an additional 5,840 shares during the last quarter. Mcguire Capital Advisors Inc. bought a new position in Zscaler in the fourth quarter valued at approximately $32,000. Finally, Invesco Ltd. increased its holdings in Zscaler by 13.8% during the fourth quarter. Invesco Ltd. now owns 1,469,657 shares of the company’s stock worth $330,555,000 after buying an additional 178,692 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 Q2 results that beat consensus on revenue and adjusted EPS, with revenue up ~26% year-over-year and ARR growth of ~25%; management raised fiscal ARR guidance and lifted FY/Q3 EPS outlook—evidence of continued demand and improving profitability metrics. Zscaler Q2 Earnings Surpass Estimates
• Positive Sentiment: Zscaler expanded its footprint in India with an AI & Cyber Threat Research Center in partnership with Bharti Airtel — a strategic move to boost product development, local sales motion and presence in a large growth market. Zscaler Airtel AI Cyber Center Opens
• Neutral Sentiment: Earnings-call commentary highlighted strong demand for Zscaler’s AI security offerings and platform, but management also discussed acquisition-related churn and competitive pressure — useful color for determining whether ARR momentum is sustainable. Q2 2026 Earnings Call Transcript
• Negative Sentiment: Despite beats, shares fell after the quarter because Zscaler reported a wider GAAP net loss driven by higher sales, marketing and R&D spending and investors reacted to softer/uncertain revenue guidance in parts — a classic beat-but-disappoint reaction when margins or cash metrics worsen. Zscaler posts wider quarterly loss
• Negative Sentiment: Several sell-side analysts cut price targets (Needham, Piper Sandler) or updated ratings after the print, narrowing upside and signaling reduced near-term enthusiasm; that analyst revision activity is pressuring the stock. Analyst Price Target Changes (Benzinga)

About Zscaler

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.