Zscaler (NASDAQ:ZS) Price Target Cut to $230.00 by Analysts at Robert W. Baird

Key Points

• Robert W. Baird cut its price target on Zscaler to $230 from $265, while keeping an outperform rating. The new target still implies about 24.6% upside from the prior close.
• Zscaler’s latest earnings beat expectations, with Q3 revenue of $850.5 million and EPS of $1.08 both topping estimates. Revenue rose 25.4% year over year, and the company also raised full-year fiscal 2026 EPS guidance.
• Despite strong results, several analysts have been lowering price targets amid concerns about tougher near-term demand and increased cybersecurity competition. The stock currently carries a Moderate Buy consensus rating with an average price target of $245.80.

Zscaler (NASDAQ:ZS - Get Free Report) had its price objective cut by analysts at Robert W. Baird from $265.00 to $230.00 in a note issued to investors on Wednesday,Benzinga reports. The firm presently has an "outperform" rating on the stock. Robert W. Baird's price target points to a potential upside of 24.59% from the stock's previous close.

Other equities research analysts have also issued research reports about the company. Piper Sandler raised Zscaler from a "neutral" rating to a "neutral" rating in a research report on Monday, May 18th. JPMorgan Chase & Co. dropped their price target on Zscaler from $354.00 to $267.00 and set an "overweight" rating on the stock in a research report on Friday, February 20th. B. Riley Financial raised Zscaler from a "neutral" rating to a "buy" rating and dropped their price target for the stock from $275.00 to $225.00 in a research report on Monday, May 18th. Citizens Jmp dropped their price target on Zscaler from $290.00 to $210.00 and set a "market outperform" rating on the stock in a research report on Friday, May 1st. Finally, TD Cowen reaffirmed a "buy" rating on shares of Zscaler in a research report on Wednesday. Two 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 given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $245.80.

Zscaler Price Performance

Shares of ZS 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 stock has a market cap of $29.68 billion, a P/E ratio of -439.52 and a beta of 0.96. The stock's 50-day moving average price is $145.75 and its two-hundred day moving average price is $192.65.

Zscaler (NASDAQ:ZS - Get Free Report) last issued its earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.01 by $0.07. Zscaler had a positive return on equity of 0.06% and a negative net margin of 2.25%.The firm had revenue of $850.48 million for the quarter, compared to analysts' expectations of $835.60 million. During the same quarter last year, the business earned $0.84 earnings per share. 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. On average, equities analysts predict that Zscaler will post -0.03 earnings per share for the current year.

Insiders Place Their Bets

In related news, EVP Raj Judge sold 2,488 shares of Zscaler stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total value of $389,595.92. Following the sale, the executive vice president owned 67,906 shares of the company's stock, 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 Securities & Exchange Commission, which can be accessed through this hyperlink. Also, 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 directly owned 46,479 shares in the company, valued at approximately $7,278,146.61. This represents a 3.49% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 12,130 shares of company stock worth $1,892,487 in the last 90 days. Company insiders own 17.20% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the stock. Bessemer Group Inc. grew its stake in Zscaler by 3.2% in the third quarter. Bessemer Group Inc. now owns 1,021 shares of the company's stock valued at $306,000 after purchasing an additional 32 shares in the last quarter. Wedbush Securities Inc. grew its stake in Zscaler by 0.7% in the third quarter. Wedbush Securities Inc. now owns 5,129 shares of the company's stock valued at $1,537,000 after purchasing an additional 34 shares in the last quarter. Goldstream Capital Management Ltd grew its stake in Zscaler by 0.3% in the third quarter. Goldstream Capital Management Ltd now owns 12,450 shares of the company's stock valued at $3,731,000 after purchasing an additional 34 shares in the last quarter. Kentucky Retirement Systems Insurance Trust Fund grew its stake in Zscaler by 1.4% in the third quarter. Kentucky Retirement Systems Insurance Trust Fund now owns 2,569 shares of the company's stock valued at $770,000 after purchasing an additional 36 shares in the last quarter. Finally, Advisor OS LLC grew its stake in Zscaler by 4.6% in the third quarter. Advisor OS LLC now owns 879 shares of the company's stock valued at $263,000 after purchasing an additional 39 shares in the last quarter. 46.45% of the stock is currently owned by institutional investors.

Key Headlines Impacting Zscaler

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

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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