Zscaler, Inc. $ZS Shares Acquired by California State Teachers Retirement System

Key Points

• California State Teachers Retirement System increased its Zscaler holdings by 13,837.9% in the second quarter, acquiring 19.25 million additional shares. It now owns 19.39 million shares, representing an 11.99% stake valued at approximately $2.74 billion.
• Zscaler reported quarterly revenue of $898.2 million, up 24.9% year over year and above analyst estimates, while earnings per share of $1.19 also beat expectations. Annual recurring revenue rose 25% to roughly $3.8 billion, supported by continued demand for its cloud security platform.
• Wall Street maintains a generally positive view, with a consensus “Moderate Buy” rating and an average price target of $216.65. However, slowing growth, increased spending and reported workforce reductions could create near-term execution and margin concerns.

California State Teachers Retirement System increased its holdings in shares of Zscaler, Inc. (NASDAQ:ZS - Free Report) by 13,837.9% in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 19,388,787 shares of the company's stock after purchasing an additional 19,249,679 shares during the period. California State Teachers Retirement System owned 11.99% of Zscaler worth $2,736,727,000 as of its most recent SEC filing.

A number of other large investors have also recently bought and sold shares of the business. Binnacle Investments Inc acquired a new position in Zscaler in the third quarter valued at $25,000. AlphaCentric Advisors LLC acquired a new stake in shares of Zscaler during the fourth quarter worth about $29,000. University of Texas Texas AM Investment Management Co. acquired a new stake in shares of Zscaler during the fourth quarter worth about $30,000. POM Investment Strategies LLC grew its holdings in shares of Zscaler by 92.9% during the second quarter. POM Investment Strategies LLC now owns 218 shares of the company's stock worth $31,000 after buying an additional 105 shares during the last quarter. Finally, Mcguire Capital Advisors Inc. purchased a new position in shares of Zscaler during the fourth quarter worth about $32,000. Institutional investors and hedge funds own 46.45% of the company's stock.

Key Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler reported fiscal fourth-quarter revenue of approximately $898.2 million, up 25% year over year, while annual recurring revenue rose 25% to $3.771 billion. The results highlight continued demand for its subscription-based security platform. Zscaler Reported Revenue and ARR Growth While Planning Workforce Reduction
• Positive Sentiment: Management said ARR reached roughly $3.8 billion with 25% growth, while demand for AI security is accelerating. That supports the investment case for Zscaler’s platform and its ability to benefit from rising enterprise AI adoption. Zscaler Q4 2026 Earnings Call Transcript
• Positive Sentiment: Zscaler launched Agentic SOC, which combines its zero-trust telemetry with specialized AI agents to detect, investigate, and respond to threats. Models from OpenAI and Anthropic are reportedly used to automate security operations, potentially creating new product and revenue opportunities. Zscaler Launches Agentic SOC to Contain AI-Driven Threats
• Neutral Sentiment: Zscaler gained alongside other cybersecurity and cloud companies after Cloudflare announced a security partnership with OpenAI. The move provided a broader AI-security read-through, but the partnership was Cloudflare’s rather than Zscaler’s. Cloudflare Surges on OpenAI Security Partnership
• Negative Sentiment: A Zacks analysis argued that slowing revenue and ARR growth, increased capital spending, and weaker cash-flow margins could limit Zscaler’s near-term performance despite its valuation. The company’s elevated growth expectations make execution especially important. Zscaler Stock Lags Industry Returns in Six Months
• Negative Sentiment: Reports that Zscaler is planning a workforce reduction add caution around operating priorities and suggest management is taking steps to control costs as growth moderates.

Zscaler Price Performance

Shares of NASDAQ:ZS opened at $163.48 on Friday. The company has a quick ratio of 1.70, a current ratio of 1.70 and a debt-to-equity ratio of 0.65. The company has a market cap of $26.66 billion, a P/E ratio of -419.18, a PEG ratio of 21.48 and a beta of 0.95. Zscaler, Inc. has a 52 week low of $114.63 and a 52 week high of $336.99. The company has a 50-day moving average price of $163.04 and a 200 day moving average price of $150.25.

Zscaler (NASDAQ:ZS - Get Free Report) last announced its quarterly earnings data on Thursday, September 3rd. The company reported $1.19 earnings per share for the quarter, beating analysts' consensus estimates of $1.09 by $0.10. The company had revenue of $898.19 million for the quarter, compared to analyst estimates 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 for the quarter was up 24.9% compared to the same quarter last year. During the same quarter in the previous year, the company 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. Research analysts predict that Zscaler, Inc. will post 0.56 earnings per share for the current year.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on ZS. Jefferies Financial Group restated a "buy" rating and issued a $220.00 price target on shares of Zscaler in a research report on Wednesday, September 2nd. Scotiabank reaffirmed an "outperform" rating on shares of Zscaler in a research report on Friday, September 4th. FBN Securities reiterated an "outperform" rating and issued a $175.00 target price on shares of Zscaler in a research note on Wednesday, May 27th. Royal Bank Of Canada boosted their target price on Zscaler from $200.00 to $210.00 and gave the company an "outperform" rating in a report on Friday, September 4th. Finally, Needham & Company LLC upped their price target on Zscaler from $180.00 to $215.00 and gave the stock a "buy" rating in a research note on Friday, September 4th. Thirty-four investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $216.65.

Insiders Place Their Bets

In other Zscaler news, CEO Jagtar Chaudhry sold 2,878 shares of the stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total value of $363,865.54. Following the completion of the transaction, the chief executive officer owned 343,038 shares in the company, valued at approximately $43,370,294.34. This represents a 0.83% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 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 firm's stock in a transaction on Monday, June 22nd. The shares were sold at an average price of $122.60, for a total value of $345,364.20. Following the completion of the sale, the insider directly owned 42,314 shares of the company's stock, valued at approximately $5,187,696.40. This trade 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. Insiders have sold 16,772 shares of company stock valued at $2,139,799 in the last three months. 17.20% of the stock is owned by corporate insiders.

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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