Zscaler, Inc. (NASDAQ:ZS) Given Consensus Recommendation of "Moderate Buy" by Analysts

Key Points

• Zscaler has a consensus analyst rating of "Moderate Buy", with 34 buy ratings, six holds, and one sell among 41 firms covering the stock. The average 12-month price target is about $213.97.
• The company reported strong fiscal Q4 results, posting EPS of $1.08 versus the $1.01 estimate and revenue of $850.48 million, up 25.4% year over year. Zscaler also guided Q4 2026 EPS to $1.08-$1.09 and FY 2026 EPS to $4.10-$4.11.
• Recent headlines were generally positive, including a multi-year partnership with Aston Martin Aramco Formula One Team and commentary that AI could be a major cybersecurity growth opportunity for Zscaler. Some sentiment was offset by insider share sales and an investor investigation, though the insider transactions were pre-arranged.

Zscaler, Inc. (NASDAQ:ZS - Get Free Report) has been given a consensus rating of "Moderate Buy" by the forty-one research firms that are currently covering the company, Marketbeat Ratings reports. One research analyst has rated the stock with a sell rating, six have assigned a hold rating and thirty-four have given a buy rating to the company. The average 12 month target price among brokerages that have issued a report on the stock in the last year is $213.9744.

A number of equities research analysts have commented on ZS shares. B. Riley Financial reduced their target price on Zscaler from $225.00 to $215.00 and set a "buy" rating on the stock in a research report on Wednesday, May 27th. Royal Bank Of Canada restated an "outperform" rating and issued a $200.00 target price on shares of Zscaler in a research report on Wednesday, June 10th. Canaccord Genuity Group restated a "buy" rating and issued a $210.00 target price on shares of Zscaler in a research report on Thursday, June 11th. UBS Group reduced their target price on Zscaler from $260.00 to $225.00 and set a "buy" rating on the stock in a research report on Wednesday, May 27th. Finally, Mizuho reduced their target price on Zscaler from $210.00 to $185.00 and set an "outperform" rating on the stock in a research report on Wednesday, May 27th.

Trending Headlines about Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler announced a multi-year partnership with Aston Martin Aramco Formula One Team, which will use Zscaler’s Zero Trust Exchange platform to secure sensitive design, strategy, and race data. Article Title
• Positive Sentiment: Zscaler CEO Jay Chaudhry highlighted AI as a major cybersecurity opportunity, reinforcing the company’s positioning in a fast-growing market. Article Title
• Positive Sentiment: Another report said AI could create the biggest cybersecurity opportunity in years, which supports the investment case for Zscaler’s AI-era security platform. Article Title
• Neutral Sentiment: Market commentary noted Zscaler had only a modest post-earnings move, suggesting traders are still assessing the company’s near-term outlook. Article Title
• Neutral Sentiment: Pomerantz LLP said it is investigating claims on behalf of Zscaler investors, which may add headline risk but does not by itself confirm wrongdoing. Article Title
• Negative Sentiment: Zscaler CFO Kevin Rubin sold 3,000 shares under a pre-arranged trading plan, which can still weigh on sentiment even though the sale was routine. Article Title

Zscaler Stock Performance

Shares of Zscaler stock opened at $132.26 on Friday. Zscaler has a one year low of $114.63 and a one year high of $336.99. The company has a market cap of $21.39 billion, a price-to-earnings ratio of -275.54, a PEG ratio of 77.40 and a beta of 0.97. The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.86 and a current ratio of 1.86. The business's 50 day moving average price is $141.59 and its 200 day moving average price is $168.93.

Zscaler (NASDAQ:ZS - Get Free Report) last announced its quarterly earnings data on Tuesday, May 26th. The company reported $1.08 EPS for the quarter, topping analysts' consensus estimates of $1.01 by $0.07. Zscaler had a negative return on equity of 0.37% and a negative net margin of 2.44%.The firm had revenue of $850.48 million for the quarter, compared to the consensus estimate of $835.14 million. During the same quarter last year, the business posted $0.84 earnings per share. The firm's revenue was up 25.4% compared to the same quarter last year. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. On average, research analysts predict that Zscaler will post 0.11 EPS for the current year.

Insiders Place Their Bets

In related news, insider Adam Geller sold 2,817 shares of the business's stock in a transaction on Monday, June 22nd. The stock was sold at an average price of $122.60, for a total value of $345,364.20. Following the sale, the insider owned 42,314 shares in the company, valued at approximately $5,187,696.40. The trade was a 6.24% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Kevin Rubin sold 3,000 shares of the business's stock in a transaction on Thursday, June 25th. The shares were sold at an average price of $124.22, for a total value of $372,660.00. Following the completion of the sale, the chief financial officer owned 41,901 shares in the company, valued at $5,204,942.22. This represents a 6.68% 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 15,644 shares of company stock worth $1,960,287 over the last ninety days. Company insiders own 17.20% of the company's stock.

Institutional Investors Weigh In On Zscaler

Institutional investors and hedge funds have recently modified their holdings of the company. Binnacle Investments Inc purchased a new stake in shares of Zscaler in the 3rd quarter valued at about $25,000. Picton Mahoney Asset Management purchased a new stake in Zscaler during the 3rd quarter valued at approximately $30,000. AlphaCentric Advisors LLC purchased a new stake in Zscaler during the 4th quarter valued at approximately $29,000. University of Texas Texas AM Investment Management Co. purchased a new stake in Zscaler during the 4th quarter valued at approximately $30,000. Finally, Mcguire Capital Advisors Inc. purchased a new stake in Zscaler during the 4th quarter valued at approximately $32,000. Hedge funds and other institutional investors own 46.45% of the company's stock.

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.

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