Zscaler, Inc. (NASDAQ:ZS) Given Average Rating of “Moderate Buy” by Analysts

Zscaler, Inc. (NASDAQ:ZS) has received an average rating of “Moderate Buy” from the forty-two research firms that are covering the company, MarketBeat.com reports. One analyst has rated the stock with a sell recommendation, seven have given a hold recommendation, thirty-three have issued a buy recommendation and one has given a strong buy recommendation to the company. The average 12-month target price among brokerages that have issued ratings on the stock in the last year is $304.7838.

Several research analysts have issued reports on ZS shares. Piper Sandler lowered their price objective on shares of Zscaler from $280.00 to $260.00 and set a “neutral” rating on the stock in a research report on Monday, January 5th. Wedbush raised their price target on Zscaler from $330.00 to $350.00 and gave the stock an “outperform” rating in a report on Monday, November 10th. Citizens Jmp restated a “market outperform” rating and issued a $355.00 price target on shares of Zscaler in a research report on Wednesday, November 26th. Robert W. Baird increased their price objective on Zscaler from $350.00 to $360.00 and gave the stock an “outperform” rating in a research report on Wednesday, November 26th. Finally, Bank of America cut their price target on Zscaler from $355.00 to $335.00 and set a “buy” rating for the company in a research note on Wednesday, November 26th.

Insider Buying and Selling

In other news, Director James A. Beer sold 653 shares of the stock in a transaction that occurred 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 completion of the transaction, the director directly owned 3,485 shares of the company’s stock, valued at approximately $790,119.20. This represents a 15.78% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, insider Robert Schlossman sold 2,349 shares of the company’s stock in a transaction on Wednesday, December 17th. The stock was sold at an average price of $232.79, for a total value of $546,823.71. Following the transaction, the insider directly owned 74,653 shares in the company, valued at $17,378,471.87. This represents a 3.05% 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 three months. Company insiders own 17.20% of the company’s stock.

Institutional Investors Weigh In On Zscaler

Several institutional investors and hedge funds have recently made changes to their positions in the business. VestGen Advisors LLC acquired a new stake in Zscaler in the 2nd quarter worth about $1,592,000. Brookstone Capital Management acquired a new stake in shares of Zscaler in the second quarter worth approximately $283,000. Mackenzie Financial Corp grew its holdings in Zscaler by 133.6% in the second quarter. Mackenzie Financial Corp now owns 14,780 shares of the company’s stock valued at $4,640,000 after purchasing an additional 8,454 shares during the period. Schroder Investment Management Group increased its position in Zscaler by 11.5% during the second quarter. Schroder Investment Management Group now owns 164,061 shares of the company’s stock worth $51,505,000 after purchasing an additional 16,868 shares during the last quarter. Finally, Ensign Peak Advisors Inc increased its position in Zscaler by 9.9% during the second quarter. Ensign Peak Advisors Inc now owns 395,391 shares of the company’s stock worth $124,129,000 after purchasing an additional 35,770 shares during the last quarter. 46.45% of the stock is currently owned by hedge funds and other institutional investors.

Zscaler Trading Down 5.5%

Shares of Zscaler stock opened at $159.75 on Friday. The company has a current ratio of 1.82, a quick ratio of 1.82 and a debt-to-equity ratio of 0.86. The company has a fifty day simple moving average of $206.73 and a 200-day simple moving average of $259.36. The stock has a market cap of $25.48 billion, a price-to-earnings ratio of -614.40, a PEG ratio of 325.66 and a beta of 1.02. Zscaler has a 12-month low of $159.66 and a 12-month high of $336.99.

Zscaler (NASDAQ:ZS) last posted its earnings results on Tuesday, November 25th. The company reported $0.96 EPS for the quarter, topping analysts’ consensus estimates of $0.85 by $0.11. The business had revenue of $788.11 million for the quarter, compared to analysts’ expectations of $773.86 million. Zscaler had a negative return on equity of 0.12% and a negative net margin of 1.45%.The business’s revenue was up 25.5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.77 earnings per share. Zscaler has set its FY 2026 guidance at 3.780-3.820 EPS and its Q2 2026 guidance at 0.890-0.900 EPS. On average, equities analysts forecast that Zscaler will post -0.1 EPS for the current fiscal year.

Zscaler News Roundup

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler and Bharti Airtel launched an AI & Cyber Threat Research Center in India, expanding ZS’s local presence, channel engagement and potential enterprise/government pipeline in a fast-growing market. Article Title
• Positive Sentiment: Zscaler’s Z‑Flex bookings jumped ~70% sequentially to $175M in Q1 FY26 — a sign of larger, multi‑year deals that could boost revenue visibility and margin leverage over time. Article Title
• Positive Sentiment: Management is pushing an AI security suite to address rising enterprise AI risks — product innovation that supports upsell opportunities and differentiates ZS’s platform approach. Article Title
• Neutral Sentiment: India is debating new cyber rules amid growing AI-driven threats; regulatory change could increase enterprise security spending but also introduce compliance complexity. This is a macro/regulatory factor to monitor for regional demand. Article Title
• Neutral Sentiment: JPMorgan cut its price target for ZS from $354 to $267 but kept an Overweight rating — a sizable PT reduction that tempers upside expectations while still signaling conviction in the name. Article Title
• Neutral Sentiment: Comparisons with peers (e.g., Qualys) highlight valuation and execution tradeoffs: ZS’s faster growth vs. some peers’ steadier margins and cheaper multiples — useful context for relative positioning. Article Title
• Negative Sentiment: Analyst note (Seeking Alpha summary) warns Cloudflare is taking share on RPO growth and net retention, and that Palo Alto’s M&A momentum intensifies competition — heightening investor fear of share loss and margin pressure. Article Title
• Negative Sentiment: Truist lowered expectations for Zscaler, adding to a string of cautious analyst notes that have pressured sentiment despite recent beat-and-raise results. Article Title

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.