Zscaler (NASDAQ:ZS) Given New $205.00 Price Target at JPMorgan Chase & Co.

Key Points

• JPMorgan cut its price target on Zscaler from $250 to $205 but kept an overweight rating, implying roughly 60% upside from the current price.
• Zscaler’s shares fell sharply to $128.10 amid heavy trading, even as the company recently reported fiscal Q3 results that beat estimates with $1.08 EPS and $850.5 million in revenue, up about 25% year over year.
• Analyst sentiment remains mostly positive overall, with the stock still carrying a Moderate Buy consensus and an average target price of $224.86, though some firms have lowered targets and investors are watching for execution against competition and valuation concerns.

Zscaler (NASDAQ:ZS - Get Free Report) had its price objective decreased by research analysts at JPMorgan Chase & Co. from $250.00 to $205.00 in a research report issued on Wednesday,Benzinga reports. The firm presently has an "overweight" rating on the stock. JPMorgan Chase & Co.'s target price would indicate a potential upside of 60.03% from the company's current price.

A number of other research firms also recently weighed in on ZS. Citigroup restated a "market outperform" rating on shares of Zscaler in a report on Wednesday. Citizens Jmp lowered their price target on shares of Zscaler from $290.00 to $210.00 and set a "market outperform" rating for the company in a report on Friday, May 1st. Piper Sandler set a $160.00 price target on Zscaler in a research report on Wednesday. Mizuho set a $185.00 price objective on Zscaler and gave the stock an "outperform" rating in a research note on Wednesday. Finally, Needham & Company LLC restated a "buy" rating and set a $180.00 price objective on shares of Zscaler in a research report on Wednesday. Two investment analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating, eight have issued a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $224.86.

Zscaler Price Performance

Shares of NASDAQ ZS traded down $56.50 during midday trading on Wednesday, reaching $128.10. 12,013,865 shares of the stock traded hands, compared to its average volume of 2,961,177. The company's 50 day moving average is $145.75 and its 200 day moving average is $192.65. Zscaler has a one year low of $114.63 and a one year high of $336.99. The company has a debt-to-equity ratio of 0.78, a current ratio of 1.90 and a quick ratio of 1.90. The stock has a market capitalization of $20.60 billion, a PE ratio of -304.42 and a beta of 0.96.

Zscaler (NASDAQ:ZS - Get Free Report) last announced its quarterly earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share for the quarter, topping the consensus estimate of $1.01 by $0.07. The company had revenue of $850.48 million for the quarter, compared to analysts' expectations of $835.60 million. Zscaler had a negative net margin of 2.25% and a positive return on equity of 0.06%. Zscaler's quarterly revenue was up 25.4% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.84 earnings per share. 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, equities research analysts anticipate that Zscaler will post -0.03 earnings per share for the current year.

Insider Activity at Zscaler

In related news, CFO Kevin Rubin sold 1,682 shares of the stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total value of $263,384.38. Following the sale, the chief financial officer directly owned 46,479 shares of the company's stock, valued at $7,278,146.61. This represents a 3.49% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Raj Judge sold 2,488 shares of the business's stock in a transaction that occurred 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 transaction, the executive vice president owned 67,906 shares of the company's stock, valued at $10,633,400.54. This trade represents a 3.53% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 12,130 shares of company stock worth $1,892,487 in the last three months. 17.20% of the stock is owned by insiders.

Hedge Funds Weigh In On Zscaler

A number of large investors have recently bought and sold shares of ZS. Vanguard Group Inc. increased its stake in Zscaler by 0.5% in the fourth quarter. Vanguard Group Inc. now owns 11,423,424 shares of the company's stock worth $2,569,357,000 after purchasing an additional 55,521 shares during the period. Groupama Asset Managment boosted its stake in shares of Zscaler by 76,352.6% during the third quarter. Groupama Asset Managment now owns 4,750,000 shares of the company's stock valued at $1,423,385,000 after purchasing an additional 4,743,787 shares during the period. First Trust Advisors LP grew its holdings in shares of Zscaler by 36.2% in the first quarter. First Trust Advisors LP now owns 3,518,678 shares of the company's stock worth $493,635,000 after purchasing an additional 935,781 shares during the last quarter. Price T Rowe Associates Inc. MD grew its holdings in shares of Zscaler by 43.3% in 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 purchasing an additional 777,414 shares during the last quarter. Finally, State Street Corp increased its stake in Zscaler by 3.4% in the 4th 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 period. Hedge funds and other institutional investors 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 Q3 revenue of $850.5 million and EPS of $1.08, both above estimates, while revenue rose 25% year over year and ARR also grew 25%, reinforcing the company’s strong core demand. Article: Zscaler Announces Strong Third-Quarter Fiscal 2026 Results
• Positive Sentiment: Management raised FY26 guidance and pointed to strength in AI security and record margins, which supports the long-term growth narrative for the cybersecurity platform. Article: ZS Q3 Earnings Call Flags Prudent Growth Outlook
• Positive Sentiment: Several analysts still view the stock favorably despite trimming targets, with Rosenblatt, Bernstein, Baird, and Needham maintaining bullish or buy-equivalent ratings, suggesting Wall Street still sees upside from current levels. Article: Analyst target updates
• Neutral Sentiment: New commentary on Zscaler’s AI security strategy and product expansion adds to the growth story, but also notes the stock may still need stronger execution to justify its valuation. Article: As Zscaler Doubles Down on AI Security, ZS Stock Still Needs More to Justify Its Steep Valuation
• Negative Sentiment: Despite the beat, Zscaler’s guidance disappointed traders: the company forecast fourth-quarter revenue slightly below estimates, and Reuters said the outlook reflected intensifying competition in cybersecurity and more cautious enterprise spending. Article: Zscaler sees downbeat quarterly revenue as competition heats up in cybersecurity market
• Negative Sentiment: Some recent analyst notes turned more cautious, including a Seeking Alpha downgrade citing slowing organic growth, weaker net-new ARR momentum, and competitive pressure from integrated security platforms. Article: Zscaler Q1: I Was Right (Rating Downgrade)

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.