Zscaler (NASDAQ:ZS) Given New $210.00 Price Target at Canaccord Genuity Group

Key Points

• Canaccord Genuity Group cut its price target on Zscaler from $275 to $210, but kept a buy rating. The new target still implies about 13.8% upside from the current share price.
• Zscaler reported fiscal Q3 results that beat expectations, with EPS of $1.08 and revenue of $850.5 million, up 25.4% year over year. The company also raised its FY 2026 EPS guidance.
• Despite strong results, investors are weighing weaker near-term guidance and rising cybersecurity competition, which have pressured sentiment around the stock’s premium valuation.

Zscaler (NASDAQ:ZS - Get Free Report) had its price objective lowered by Canaccord Genuity Group from $275.00 to $210.00 in a note issued to investors on Wednesday,Benzinga reports. The brokerage presently has a "buy" rating on the stock. Canaccord Genuity Group's price objective indicates a potential upside of 13.76% from the company's current price.

Other research analysts also recently issued reports about the stock. BTIG Research restated a "neutral" rating on shares of Zscaler in a research report on Thursday, April 9th. Stephens set a $205.00 target price on shares of Zscaler in a research report on Wednesday. HC Wainwright upgraded shares of Zscaler from a "buy" rating to a "buy" rating in a research report on Monday, May 18th. Piper Sandler restated a "neutral" rating on shares of Zscaler in a research report on Wednesday. Finally, Needham & Company LLC reiterated a "buy" rating and issued a $180.00 price target on shares of Zscaler in a research report on Wednesday. Two research analysts have rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating, seven have issued a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Zscaler has an average rating of "Moderate Buy" and a consensus target price of $239.06.

Zscaler Stock Performance

Zscaler stock opened at $184.60 on Wednesday. The company has a current ratio of 1.90, a quick ratio of 1.90 and a debt-to-equity ratio of 0.78. Zscaler has a 1 year low of $114.63 and a 1 year high of $336.99. The company has a market cap of $29.68 billion, a PE ratio of -439.52 and a beta of 0.96. The company's 50-day moving average is $145.75 and its two-hundred day moving average is $192.65.

Zscaler (NASDAQ:ZS - Get Free Report) last released its earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.01 by $0.07. Zscaler had a negative net margin of 2.25% and a positive return on equity of 0.06%. The company had revenue of $850.48 million for the quarter, compared to the consensus estimate of $835.60 million. During the same period in the prior year, the company posted $0.84 EPS. The company'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. Equities analysts anticipate that Zscaler will post -0.03 earnings per share for the current year.

Insiders Place Their Bets

In other Zscaler news, EVP Raj Judge sold 2,488 shares of the firm'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 transaction of $389,595.92. Following the sale, the executive vice president directly owned 67,906 shares in the company, valued at approximately $10,633,400.54. This trade represents a 3.53% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Robert Schlossman sold 2,263 shares of the firm's stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total transaction of $354,363.17. Following the sale, the insider owned 72,390 shares in the company, valued at $11,335,550.10. This trade represents a 3.03% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 12,130 shares of company stock worth $1,892,487 over the last ninety days. Company insiders own 17.20% of the company's stock.

Institutional Trading of Zscaler

Hedge funds have recently bought and sold shares of the stock. Binnacle Investments Inc acquired a new stake in Zscaler during the 3rd quarter worth approximately $25,000. Root Financial Partners LLC bought a new position in shares of Zscaler during the 3rd quarter worth approximately $26,000. Picton Mahoney Asset Management bought a new position in shares of Zscaler during the 3rd quarter worth approximately $30,000. AlphaCentric Advisors LLC bought a new position in shares of Zscaler during the 4th quarter worth approximately $29,000. Finally, University of Texas Texas AM Investment Management Co. bought a new position in shares of Zscaler during the 4th quarter worth approximately $30,000. 46.45% of the stock is currently owned by institutional investors and hedge funds.

Zscaler News Summary

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler reported fiscal Q3 revenue of $850.5 million, up 25% year over year, and EPS of $1.08, both ahead of estimates, showing continued execution and demand for its cloud security platform. Zscaler Announces Strong Third-Quarter Fiscal 2026 Results
• Positive Sentiment: The company raised full-year fiscal 2026 EPS guidance, signaling confidence in profitability despite ongoing investment in growth and AI security initiatives. ZS Q3 Earnings Call Flags Prudent Growth Outlook
• Positive Sentiment: B. Riley upgraded Zscaler to Buy from Neutral, citing product-line expansion and improving business momentum, though the firm lowered its price target. B.Riley Upgrades Zscaler (ZS) Rating to Buy Amid Product Line Expansion
• Neutral Sentiment: Zscaler continued to emphasize AI security as a growth driver, and commentary around record margins and recurring revenue suggests the long-term story remains intact. ZS Q3 Earnings Call Flags Prudent Growth Outlook
• Negative Sentiment: Investors reacted to weaker fourth-quarter revenue guidance and a lower free cash flow outlook, suggesting tougher near-term demand conditions and more cautious spending by customers. Zscaler sees downbeat quarterly revenue as competition heats up in cybersecurity market
• Negative Sentiment: Several reports noted that competition is heating up in cybersecurity, which is weighing on sentiment around Zscaler’s ability to sustain rapid growth and premium valuation. Zscaler tumbles as mixed guidance outshines strong Q3 results

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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