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

Key Points

• Analyst consensus: 41 firms give Zscaler a "Moderate Buy" (29 buy, 8 hold, 2 sell, 2 strong buy) with an average 12‑month price target of $263.46, though several brokers (BMO, RBC, Citizens JMP) recently cut targets and Wells Fargo started coverage with a $200 target.
• Quarterly results: Zscaler beat expectations with $1.01 EPS (vs. $0.89) and revenue of $815.75M, up 25.9% year‑over‑year, and issued Q3 FY2026 EPS guidance of 1.00–1.01 and FY2026 guidance of 3.99–4.02, while the stock trades around $152.79 (52‑week high $336.99).
• Insider and institutional activity: Executives sold roughly 12,130 shares (~$1.89M) recently (insiders own 17.2%), while institutions hold about 46.45% of the stock, led by Vanguard and other large funds.

Zscaler, Inc. (NASDAQ:ZS - Get Free Report) has been given an average rating of "Moderate Buy" by the forty-one research firms that are covering the company, Marketbeat reports. Two research analysts have rated the stock with a sell rating, eight have issued a hold rating, twenty-nine have issued a buy rating and two have given a strong buy rating to the company. The average twelve-month price target among analysts that have updated their coverage on the stock in the last year is $263.4571.

A number of equities research analysts have recently commented on ZS shares. BMO Capital Markets cut their price objective on Zscaler from $315.00 to $210.00 and set an "outperform" rating for the company in a research report on Friday, February 27th. Rosenblatt Securities reiterated a "buy" rating and set a $280.00 price objective on shares of Zscaler in a research report on Tuesday, February 24th. Royal Bank Of Canada cut their price objective on Zscaler from $250.00 to $205.00 and set an "outperform" rating for the company in a research report on Friday, February 27th. Citizens Jmp cut their price objective on Zscaler from $290.00 to $210.00 and set a "market outperform" rating for the company in a research report on Friday, May 1st. Finally, Wells Fargo & Company started coverage on Zscaler in a research report on Tuesday, March 3rd. They set an "overweight" rating and a $200.00 price objective for the company.

Zscaler Price Performance

Shares of NASDAQ:ZS opened at $152.79 on Friday. Zscaler has a one year low of $114.63 and a one year high of $336.99. The stock has a fifty day moving average of $143.25 and a 200-day moving average of $206.91. The company has a market capitalization of $24.57 billion, a PE ratio of -363.79 and a beta of 0.96. The company has a debt-to-equity ratio of 0.78, a quick ratio of 1.90 and a current ratio of 1.90.

Zscaler (NASDAQ:ZS - Get Free Report) last announced its quarterly earnings data on Thursday, February 26th. The company reported $1.01 EPS for the quarter, beating analysts' consensus estimates of $0.89 by $0.12. Zscaler had a positive return on equity of 0.06% and a negative net margin of 2.25%.The company had revenue of $815.75 million during the quarter, compared to the consensus estimate of $798.92 million. During the same quarter in the prior year, the firm earned $0.78 EPS. The company's quarterly revenue was up 25.9% compared to the same quarter last year. Zscaler has set its Q3 2026 guidance at 1.000-1.010 EPS and its FY 2026 guidance at 3.990-4.020 EPS. As a group, equities analysts anticipate that Zscaler will post -0.03 EPS for the current fiscal year.

Insider Buying and Selling

In other news, insider Robert Schlossman sold 2,263 shares of the stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total value of $354,363.17. Following the completion of the sale, the insider owned 72,390 shares in the company, valued at $11,335,550.10. This represents a 3.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Raj Judge sold 2,488 shares of the stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total value of $389,595.92. Following the completion of the sale, the executive vice president owned 67,906 shares of the company's stock, valued at $10,633,400.54. The trade was a 3.53% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 12,130 shares of company stock valued at $1,892,487. 17.20% of the stock is currently owned by company insiders.

Institutional Trading of Zscaler

A number of hedge funds have recently modified their holdings of the business. Vanguard Group Inc. increased its position in Zscaler by 0.5% during the fourth quarter. Vanguard Group Inc. now owns 11,423,424 shares of the company's stock worth $2,569,357,000 after buying an additional 55,521 shares during the last quarter. Groupama Asset Managment increased its position in Zscaler by 76,352.6% during the third quarter. Groupama Asset Managment now owns 4,750,000 shares of the company's stock worth $1,423,385,000 after buying an additional 4,743,787 shares during the last quarter. First Trust Advisors LP increased its position in Zscaler by 15.9% during the fourth quarter. First Trust Advisors LP now owns 2,582,897 shares of the company's stock worth $580,945,000 after buying an additional 354,763 shares during the last quarter. Price T Rowe Associates Inc. MD increased its position in Zscaler by 43.3% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,572,358 shares of the company's stock worth $578,576,000 after buying an additional 777,414 shares during the last quarter. Finally, State Street Corp increased its position in Zscaler by 3.4% during the fourth quarter. State Street Corp now owns 2,337,604 shares of the company's stock worth $525,774,000 after buying an additional 77,800 shares during the last quarter. Hedge funds and other institutional investors own 46.45% of the company's stock.

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.

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