JPMorgan Chase & Co. Increases Position in Zscaler, Inc. $ZS

JPMorgan Chase & Co. increased its holdings in Zscaler, Inc. (NASDAQ:ZS) by 42.0% in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 412,578 shares of the company’s stock after acquiring an additional 122,015 shares during the period. JPMorgan Chase & Co.’s holdings in Zscaler were worth $123,636,000 at the end of the most recent quarter.

A number of other hedge funds have also bought and sold shares of ZS. Vanguard Group Inc. grew its stake in Zscaler by 8.3% in the 2nd quarter. Vanguard Group Inc. now owns 10,715,132 shares of the company’s stock valued at $3,363,909,000 after purchasing an additional 824,626 shares during the period. Geode Capital Management LLC boosted its holdings in shares of Zscaler by 6.0% in the 2nd quarter. Geode Capital Management LLC now owns 1,866,329 shares of the company’s stock worth $584,160,000 after buying an additional 105,318 shares during the last quarter. Federated Hermes Inc. grew its position in Zscaler by 9.4% during the third quarter. Federated Hermes Inc. now owns 1,281,671 shares of the company’s stock valued at $384,066,000 after buying an additional 109,688 shares during the period. AQR Capital Management LLC increased its holdings in Zscaler by 0.7% during the second quarter. AQR Capital Management LLC now owns 1,199,815 shares of the company’s stock worth $371,823,000 after buying an additional 7,885 shares during the last quarter. Finally, Legal & General Group Plc raised its position in Zscaler by 2.0% in the second quarter. Legal & General Group Plc now owns 607,899 shares of the company’s stock worth $190,844,000 after acquiring an additional 11,676 shares during the period. 46.45% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on ZS shares. Weiss Ratings reissued a “sell (d-)” rating on shares of Zscaler in a research report on Wednesday, January 21st. Needham & Company LLC dropped their price objective on Zscaler from $350.00 to $310.00 and set a “buy” rating on the stock in a research note on Wednesday, November 26th. Capital One Financial set a $320.00 target price on Zscaler and gave the stock an “overweight” rating in a research report on Wednesday, November 26th. Truist Financial lowered their target price on Zscaler from $350.00 to $250.00 and set a “buy” rating on the stock in a research note on Tuesday, February 17th. Finally, Robert W. Baird upped their price target on Zscaler from $350.00 to $360.00 and gave the company an “outperform” rating in a research report on Wednesday, November 26th. One analyst has rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $304.78.

Zscaler Stock Performance

NASDAQ:ZS opened at $159.75 on Monday. The business’s fifty day moving average is $206.73 and its 200 day moving average is $259.15. The firm 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. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.82 and a current ratio of 1.82. Zscaler, Inc. has a 52-week low of $159.66 and a 52-week high of $336.99.

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

Key Zscaler News

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

Insider Activity at Zscaler

In other news, CEO Jagtar Singh Chaudhry sold 2,843 shares of the company’s stock in a transaction on Tuesday, December 16th. The shares were sold at an average price of $230.82, for a total value of $656,221.26. Following the transaction, the chief executive officer owned 347,857 shares of the company’s stock, valued at approximately $80,292,352.74. This represents a 0.81% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Robert Schlossman sold 3,084 shares of the stock in a transaction on Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total value of $711,848.88. Following the completion of the sale, the insider owned 77,002 shares in the company, valued at $17,773,601.64. This trade represents a 3.85% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 19,350 shares of company stock valued at $4,471,509 in the last quarter. 17.20% of the stock is currently owned by company insiders.

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.