KeyCorp Comments on Zscaler’s Q2 Earnings (NASDAQ:ZS)

Zscaler, Inc. (NASDAQ:ZS) – Analysts at KeyCorp issued their Q2 2026 earnings per share estimates for Zscaler in a note issued to investors on Monday, January 12th. KeyCorp analyst E. Heath anticipates that the company will post earnings of ($0.05) per share for the quarter. KeyCorp currently has a “Overweight” rating and a $300.00 price target on the stock. The consensus estimate for Zscaler’s current full-year earnings is ($0.10) per share. KeyCorp also issued estimates for Zscaler’s Q3 2026 earnings at $0.01 EPS, Q4 2026 earnings at $0.03 EPS, FY2026 earnings at $0.01 EPS and FY2027 earnings at $0.22 EPS.

Several other equities analysts have also commented on the stock. Mizuho raised shares of Zscaler from a “neutral” rating to an “outperform” rating and set a $310.00 target price on the stock in a report on Tuesday, December 16th. Citigroup reduced their price target on shares of Zscaler from $350.00 to $305.00 and set a “buy” rating on the stock in a research report on Tuesday. Rosenblatt Securities reissued a “buy” rating and issued a $365.00 price objective on shares of Zscaler in a research note on Wednesday, November 26th. Bank of America cut their target price on Zscaler from $355.00 to $335.00 and set a “buy” rating for the company in a research note on Wednesday, November 26th. Finally, Loop Capital set a $320.00 target price on Zscaler in a report on Thursday, December 11th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, Zscaler has an average rating of “Moderate Buy” and an average price target of $317.63.

Zscaler Stock Down 1.8%

ZS stock opened at $210.50 on Thursday. Zscaler has a 52 week low of $164.78 and a 52 week high of $336.99. The business has a 50-day simple moving average of $249.77 and a 200 day simple moving average of $278.57. The company has a quick ratio of 1.82, a current ratio of 1.82 and a debt-to-equity ratio of 0.86. The company has a market cap of $33.57 billion, a PE ratio of -809.57, a price-to-earnings-growth ratio of 3,521.67 and a beta of 1.02.

Zscaler (NASDAQ:ZS) last announced its quarterly earnings data on Tuesday, November 25th. The company reported $0.96 earnings per share for the quarter, beating the consensus estimate of $0.85 by $0.11. The firm had revenue of $788.11 million during the quarter, compared to analysts’ expectations of $773.86 million. Zscaler had a negative return on equity of 0.12% and a negative net margin of 1.45%.The company’s quarterly revenue was up 25.5% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.77 EPS. Zscaler has set its FY 2026 guidance at 3.780-3.820 EPS and its Q2 2026 guidance at 0.890-0.900 EPS.

Hedge Funds Weigh In On Zscaler

A number of hedge funds and other institutional investors have recently bought and sold shares of ZS. Brookstone Capital Management bought a new stake in shares of Zscaler in the 2nd quarter worth approximately $283,000. VestGen Advisors LLC bought a new position in shares of Zscaler during the 2nd quarter valued at $1,592,000. Mackenzie Financial Corp raised its position in Zscaler by 133.6% in the 2nd quarter. Mackenzie Financial Corp now owns 14,780 shares of the company’s stock worth $4,640,000 after purchasing an additional 8,454 shares during the period. Schroder Investment Management Group lifted its stake in Zscaler by 11.5% in the second quarter. Schroder Investment Management Group now owns 164,061 shares of the company’s stock worth $51,505,000 after purchasing an additional 16,868 shares during the last quarter. Finally, Ensign Peak Advisors Inc boosted its position in Zscaler by 9.9% during the second quarter. Ensign Peak Advisors Inc now owns 395,391 shares of the company’s stock valued at $124,129,000 after buying an additional 35,770 shares during the period. Hedge funds and other institutional investors own 46.45% of the company’s stock.

Insider Activity

In other news, CFO Kevin Rubin sold 3,303 shares of the stock in a transaction dated Tuesday, December 16th. The shares were sold at an average price of $230.82, for a total value of $762,398.46. Following the sale, the chief financial officer directly owned 48,161 shares of the company’s stock, valued at approximately $11,116,522.02. This represents a 6.42% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Jagtar Singh Chaudhry sold 2,843 shares of the firm’s stock in a transaction that occurred on Tuesday, December 16th. The shares were sold at an average price of $230.82, for a total transaction of $656,221.26. Following the completion of the transaction, the chief executive officer owned 347,857 shares of the company’s stock, valued at $80,292,352.74. This trade represents a 0.81% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 22,550 shares of company stock valued at $5,511,509. 17.20% of the stock is currently owned by insiders.

Zscaler News Summary

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler shows accelerating platform traction, with management-led GTM changes and the Z‑Flex initiative reportedly driving >20% revenue growth, stronger net retention, bigger platform deals, AI security growth of >80% y/y, and Data Security ARR near $450M — a clear catalyst for upside if execution continues. Zscaler: Growth Path Ahead Has Gotten Clearer And Stronger
• Positive Sentiment: KeyCorp reiterates an Overweight stance with a $300 target and published updated quarterly and multi‑year EPS forecasts (FY26/FY27 showing improvement toward profitability). That analyst support provides a near‑term valuation tailwind vs. the recent pullback.
• Neutral Sentiment: A Seeking Alpha piece upgraded Zscaler but advised caution — the rating change signals improving sentiment, but the author recommends waiting for clearer confirmation, which can limit immediate buying. Zscaler: I Wouldn’t Pull The Trigger Just Yet (Rating Upgrade)
• Neutral Sentiment: Competitive landscape analysis vs. Netskope highlights an active, high‑growth battle for the AI‑security edge — underlines both opportunity and execution risk as customers consolidate around a preferred platform. Zscaler Vs. Netskope: The Battle For The AI Cybersecurity Edge
• Negative Sentiment: Citigroup trimmed its price target to $305, a downward revision that can pressure sentiment and cap upside for short‑term traders. Citigroup Lowers Zscaler (NASDAQ:ZS) Price Target to $305.00
• Negative Sentiment: Market reports noted Zscaler’s share dip versus the broader market, reflecting short‑term selling on the mix of analyst moves and overall sector weakness. Why Zscaler (ZS) Dipped More Than Broader Market Today

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.