Zscaler (NASDAQ:ZS) Given New $225.00 Price Target at Cantor Fitzgerald

Key Points

• Cantor Fitzgerald cut its price target on Zscaler from $300 to $225, but kept an overweight rating, implying about 73.6% upside from the current share price.
• Zscaler shares fell sharply, trading down 29.8% to $129.64, even as the company’s latest earnings beat expectations with $1.08 EPS and $850.5 million in revenue.
• Analyst sentiment remains mostly positive overall, with the stock carrying a Moderate Buy consensus and an average price target of $226.58, despite some more cautious recent calls.

Zscaler (NASDAQ:ZS - Get Free Report) had its price objective decreased by stock analysts at Cantor Fitzgerald from $300.00 to $225.00 in a research note issued to investors on Wednesday, MarketBeat reports. The brokerage presently has an "overweight" rating on the stock. Cantor Fitzgerald's price objective would suggest a potential upside of 73.56% from the company's current price.

A number of other research analysts have also recently commented on ZS. Needham & Company LLC restated a "buy" rating and issued a $180.00 target price on shares of Zscaler in a research note on Wednesday. KeyCorp upped their price target on Zscaler from $160.00 to $190.00 and gave the stock an "overweight" rating in a research note on Monday, May 18th. Canaccord Genuity Group decreased their price objective on Zscaler from $275.00 to $210.00 and set a "buy" rating for the company in a report on Wednesday. Zacks Research lowered Zscaler from a "hold" rating to a "strong sell" rating in a research report on Wednesday, April 29th. Finally, Royal Bank Of Canada reaffirmed an "outperform" rating on shares of Zscaler in a research report on Wednesday. Two research analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating, eight have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $226.58.

Zscaler Trading Down 29.8%

Shares of NASDAQ ZS traded down $54.97 during midday trading on Wednesday, hitting $129.64. 8,706,504 shares of the company traded hands, compared to its average volume of 2,919,019. Zscaler has a 12-month low of $114.63 and a 12-month high of $336.99. The firm has a market cap of $20.84 billion, a P/E ratio of -308.17 and a beta of 0.96. The stock has a 50-day moving average price of $145.75 and a 200 day moving average price of $192.65. 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 issued its quarterly earnings data on Tuesday, May 26th. The company reported $1.08 EPS for the quarter, topping the consensus estimate of $1.01 by $0.07. The business had revenue of $850.48 million during the quarter, compared to analyst estimates 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% compared to the same quarter last year. During the same period last 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. As a group, analysts expect that Zscaler will post -0.03 earnings per share for the current year.

Insider Activity

In other Zscaler news, CFO Kevin Rubin sold 1,682 shares of Zscaler 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 $263,384.38. Following the completion of the sale, the chief financial officer owned 46,479 shares of the company's stock, valued at approximately $7,278,146.61. The trade was a 3.49% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Robert Schlossman sold 2,263 shares of the business's stock in a transaction on Tuesday, March 17th. The shares were 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 of the company's stock, valued at approximately $11,335,550.10. This represents a 3.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 12,130 shares of company stock valued at $1,892,487. Corporate insiders own 17.20% of the company's stock.

Institutional Trading of Zscaler

Several large investors have recently modified their holdings of the company. Front Row Advisors LLC increased its position in Zscaler by 24.1% during the first quarter. Front Row Advisors LLC now owns 809 shares of the company's stock valued at $113,000 after acquiring an additional 157 shares during the last quarter. Western Wealth Management LLC bought a new position in Zscaler in the first quarter valued at about $33,000. Bank of America Corp DE increased its position in shares of Zscaler by 44.3% during the 1st quarter. Bank of America Corp DE now owns 779,245 shares of the company's stock valued at $109,320,000 after purchasing an additional 239,326 shares during the last quarter. Edgestream Partners L.P. grew its position in Zscaler by 95.9% during the first quarter. Edgestream Partners L.P. now owns 1,992 shares of the company's stock valued at $279,000 after buying an additional 975 shares during the period. Finally, Janus Henderson Group PLC boosted its stake in shares of Zscaler by 47.0% during the 1st quarter. Janus Henderson Group PLC now owns 541,671 shares of the company's stock worth $76,005,000 after acquiring an additional 173,268 shares during the last quarter. 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.

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