Zscaler, Inc. (NASDAQ:ZS) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Analysts maintain a Moderate Buy consensus: Of 42 analysts covering Zscaler, 34 rate it a buy, six hold, and two sell. The average 12-month price target is $216.65.
• Quarterly results exceeded expectations: Zscaler reported revenue of approximately $898.2 million, up 25% year over year, while adjusted EPS of $1.19 beat the $1.09 consensus estimate.
• Growth prospects are balanced by profitability concerns: The company is expanding its AI-security offerings and customer adoption, but analysts have flagged slowing growth, higher spending, weaker cash-flow margins, and planned workforce reductions.

Zscaler, Inc. (NASDAQ:ZS - Get Free Report) has earned a consensus recommendation of "Moderate Buy" from the forty-two analysts that are currently covering the firm, Marketbeat Ratings reports. Two equities research analysts have rated the stock with a sell rating, six have issued a hold rating and thirty-four have assigned a buy rating to the company. The average twelve-month target price among brokerages that have issued ratings on the stock in the last year is $216.65.

A number of equities analysts recently weighed in on the stock. Roth Capital reiterated a "neutral" rating and issued a $170.00 price objective on shares of Zscaler in a research report on Saturday. Zacks Research lowered shares of Zscaler from a "hold" rating to a "strong sell" rating in a research note on Thursday, September 3rd. Berenberg Bank set a $200.00 price objective on shares of Zscaler in a research report on Thursday, May 28th. Barclays boosted their target price on Zscaler from $192.00 to $200.00 and gave the stock an "overweight" rating in a research report on Friday, September 4th. Finally, Jefferies Financial Group reissued a "buy" rating and issued a $220.00 price target on shares of Zscaler in a report on Wednesday, September 2nd.

Trending Headlines about Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Strong fourth-quarter performance: Zscaler reported fiscal Q4 revenue of approximately $898.2 million, up 25% year over year and above expectations. Annual recurring revenue reached $3.771 billion, also up 25%, while adjusted EPS exceeded consensus estimates. Zscaler Q4 2026 Earnings Call Transcript
• Positive Sentiment: AI security product launch: Zscaler introduced Agentic SOC, which combines its zero-trust telemetry with specialized AI agents to detect, investigate and respond to threats at machine speed. The platform uses models from OpenAI and Anthropic, strengthening Zscaler’s positioning in automated enterprise security. Zscaler launches Agentic SOC
• Positive Sentiment: Customer adoption indicators remain favorable: Z-Flex generated more than $1.7 billion in fiscal 2026 total contract value and helped lift customer ARR nearly 30%, suggesting flexible contracting may broaden adoption of Zscaler’s platform. Zscaler Z-Flex analysis
• Neutral Sentiment: Industry AI-security enthusiasm: Cloudflare’s separate OpenAI security partnership sparked broad interest in AI-related cybersecurity stocks, providing a favorable backdrop for Zscaler even though the partnership does not directly involve Zscaler. Cloudflare OpenAI security partnership
• Negative Sentiment: Growth and profitability concerns: Analysts have pointed to decelerating revenue and ARR growth, increased capital spending and weaker cash-flow margins. A planned workforce reduction may improve efficiency but also signals that management is taking steps to control costs amid a more challenging growth outlook. Zscaler stock outlook analysis

Zscaler Stock Performance

NASDAQ ZS opened at $166.10 on Thursday. The firm has a market cap of $27.08 billion, a P/E ratio of -425.90, a P/E/G ratio of 61.32 and a beta of 0.95. Zscaler has a 52-week low of $114.63 and a 52-week high of $336.99. The business's 50-day moving average price is $162.71 and its 200 day moving average price is $150.23. The company has a quick ratio of 1.70, a current ratio of 1.70 and a debt-to-equity ratio of 0.65.

Zscaler (NASDAQ:ZS - Get Free Report) last posted its quarterly earnings data on Thursday, September 3rd. The company reported $1.19 EPS for the quarter, beating the consensus estimate of $1.09 by $0.10. The firm had revenue of $898.19 million during the quarter, compared to the consensus estimate of $876.96 million. Zscaler had a positive return on equity of 1.23% and a negative net margin of 1.88%.The firm's revenue was up 24.9% compared to the same quarter last year. During the same period in the prior year, the business earned $0.89 EPS. Zscaler has set its FY 2027 guidance at 4.860-4.900 EPS and its Q1 2027 guidance at 1.150-1.160 EPS. On average, equities research analysts expect that Zscaler will post 0.19 earnings per share for the current year.

Insiders Place Their Bets

In other news, CEO Jagtar Chaudhry sold 2,878 shares of the company's stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $126.43, for a total transaction of $363,865.54. Following the transaction, the chief executive officer directly owned 343,038 shares of the company's stock, valued at $43,370,294.34. This represents a 0.83% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Adam Geller sold 2,817 shares of the stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $122.60, for a total transaction of $345,364.20. Following the completion of the transaction, the insider owned 42,314 shares of the company's stock, valued at $5,187,696.40. This represents a 6.24% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 16,772 shares of company stock worth $2,139,799. 17.20% of the stock is owned by insiders.

Institutional Trading of Zscaler

Institutional investors have recently added to or reduced their stakes in the stock. Binnacle Investments Inc purchased a new position in Zscaler in the third quarter valued at about $25,000. AlphaCentric Advisors LLC purchased a new stake in shares of Zscaler during the 4th quarter worth approximately $29,000. University of Texas Texas AM Investment Management Co. acquired a new stake in shares of Zscaler in the 4th quarter worth approximately $30,000. POM Investment Strategies LLC grew its holdings in shares of Zscaler by 92.9% in the 2nd quarter. POM Investment Strategies LLC now owns 218 shares of the company's stock worth $31,000 after acquiring an additional 105 shares during the period. Finally, Mcguire Capital Advisors Inc. purchased a new position in Zscaler in the 4th quarter valued at approximately $32,000. Hedge funds and other institutional investors own 46.45% of the company's stock.

Zscaler Company Profile

Zscaler, Inc is a cloud-native cybersecurity company that provides security services designed to help organizations connect users, devices, applications and workloads securely over the internet. Its platform is built around a zero-trust security model, which verifies access based on identity, context and policy rather than relying primarily on a traditional corporate network perimeter.

The company's offerings include Zscaler Internet Access, which secures access to internet and software-as-a-service applications, and Zscaler Private Access, which provides secure, policy-based access to private applications without requiring conventional virtual private networks.

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