Mizuho Issues Pessimistic Forecast for Zscaler (NASDAQ:ZS) Stock Price

Zscaler (NASDAQ:ZS) had its price objective cut by analysts at Mizuho from $265.00 to $250.00 in a report issued on Friday,Benzinga reports. The firm presently has an “outperform” rating on the stock. Mizuho’s target price suggests a potential upside of 70.08% from the stock’s current price.

ZS has been the topic of several other research reports. Piper Sandler lowered their price objective on shares of Zscaler from $260.00 to $185.00 and set a “neutral” rating on the stock in a research report on Friday. Sanford C. Bernstein upgraded Zscaler from a “market perform” rating to an “outperform” rating and set a $228.00 price target on the stock in a research report on Friday, February 13th. Oppenheimer cut their price objective on Zscaler from $345.00 to $280.00 and set an “outperform” rating for the company in a report on Friday. UBS Group reduced their price objective on Zscaler from $350.00 to $340.00 and set a “buy” rating on the stock in a research report on Wednesday, November 26th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Zscaler in a research report on Wednesday, January 21st. One analyst has rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, Zscaler currently has an average rating of “Moderate Buy” and a consensus target price of $274.37.

Zscaler Stock Performance

Shares of ZS opened at $146.99 on Friday. The company has a market cap of $23.44 billion, a PE ratio of -349.98, a price-to-earnings-growth ratio of 299.64 and a beta of 1.02. The company has a current ratio of 1.82, a quick ratio of 1.82 and a debt-to-equity ratio of 0.86. The stock has a 50-day moving average price of $198.92 and a 200-day moving average price of $255.06. Zscaler has a 12-month low of $140.56 and a 12-month high of $336.99.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings data on Thursday, February 26th. The company reported $1.01 earnings per share for the quarter, topping the consensus estimate of $0.89 by $0.12. Zscaler had a negative net margin of 2.25% and a positive return on equity of 0.06%. The company had revenue of $815.75 million for the quarter, compared to analysts’ expectations of $798.92 million. During the same period in the prior year, the business earned $0.78 earnings per share. Zscaler’s revenue for the quarter was up 25.9% compared to the same quarter last year. Zscaler has set its Q3 2026 guidance at 1.000-1.010 EPS and its FY 2026 guidance at 3.990-4.020 EPS. As a group, equities analysts forecast that Zscaler will post -0.1 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Zscaler news, CFO Kevin Rubin sold 3,303 shares of the business’s stock in a transaction that occurred on Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total value of $762,398.46. Following the completion of the sale, the chief financial officer owned 48,161 shares in the company, valued at approximately $11,116,522.02. The trade was a 6.42% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Adam Geller sold 2,060 shares of the firm’s stock in a transaction that occurred on Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total transaction of $475,489.20. Following the completion of the transaction, the insider owned 52,148 shares in the company, valued at $12,036,801.36. This represents a 3.80% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 19,350 shares of company stock worth $4,471,509. 17.20% of the stock is currently owned by corporate insiders.

Institutional Trading of Zscaler

A number of institutional investors have recently modified their holdings of ZS. Integrated Wealth Concepts LLC raised its position in Zscaler by 19.9% during the 1st quarter. Integrated Wealth Concepts LLC now owns 1,439 shares of the company’s stock valued at $285,000 after purchasing an additional 239 shares during the last quarter. NewEdge Advisors LLC raised its holdings in shares of Zscaler by 8.2% during the first quarter. NewEdge Advisors LLC now owns 4,899 shares of the company’s stock valued at $972,000 after acquiring an additional 370 shares in the last quarter. Empowered Funds LLC boosted its holdings in Zscaler by 9.2% in the first quarter. Empowered Funds LLC now owns 2,811 shares of the company’s stock valued at $558,000 after acquiring an additional 238 shares in the last quarter. Sivia Capital Partners LLC purchased a new position in Zscaler during the 2nd quarter valued at $252,000. Finally, Wealthfront Advisers LLC raised its holdings in Zscaler by 1.8% in the 2nd quarter. Wealthfront Advisers LLC now owns 6,788 shares of the company’s stock worth $2,131,000 after purchasing an additional 118 shares in the last quarter. 46.45% of the stock is currently owned by hedge funds and other institutional investors.

Zscaler News Roundup

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Q2 results beat: adjusted EPS $1.01 vs. $0.89 est., revenue $815.8M vs. ~$799M est., and ARR grew ~25% year/year — signals demand momentum. GlobeNewswire: Q2 Results
• Positive Sentiment: Management is pitching AI security growth and new initiatives (AI Guard, agentic security, India AI/Cyber center with Airtel) as durable secular drivers that expand TAM beyond seat-based SaaS. CFO Interview Airtel AI Center
• Neutral Sentiment: Management issued updated forward guidance and commentary (Q3 EPS range and FY EPS range were provided), creating mixed signals that markets are parsing. Earnings Highlights
• Neutral Sentiment: Executives (CEO & CFO) gave interviews and the full call transcript is available — useful for investors wanting detail on churn, acquisitions and how AI monetization will scale. Earnings Call Transcript
• Negative Sentiment: Wider GAAP loss and higher spending: the company posted a larger net loss driven by increased sales, marketing and R&D, which pressured investor sentiment. Reuters: Wider Loss
• Negative Sentiment: Mixed/uncertain revenue outlook commentary: some outlets reported the company lowered aspects of its revenue outlook, creating confusion and weighing on the stock despite EPS beats. Benzinga: Revenue Guidance Report
• Negative Sentiment: Broad analyst price‑target cuts today from multiple firms (Canaccord, Morgan Stanley, Oppenheimer, Berenberg, Needham, and others) have amplified selling pressure even as many kept “buy/outperform” stances — the cuts compress perception of near‑term upside. MarketScreener: Analyst Cuts
• Negative Sentiment: Market reaction: investors appear to be focusing on margin/expense trajectory, competitive pressure and near-term revenue clarity rather than the company’s AI growth story — producing the stock decline. Seeking Alpha: Market Reaction

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.