Royal Bank Of Canada Issues Pessimistic Forecast for Zscaler (NASDAQ:ZS) Stock Price

Zscaler (NASDAQ:ZS) had its price target cut by stock analysts at Royal Bank Of Canada from $250.00 to $205.00 in a research note issued to investors on Friday,Benzinga reports. The firm currently has an “outperform” rating on the stock. Royal Bank Of Canada’s price objective would suggest a potential upside of 39.47% from the company’s current price.

Several other equities research analysts have also recently issued reports on ZS. Robert W. Baird reduced their price objective on shares of Zscaler from $360.00 to $300.00 and set an “outperform” rating on the stock in a research report on Monday, February 23rd. Rosenblatt Securities reiterated a “buy” rating and issued a $280.00 price target on shares of Zscaler in a report on Tuesday, February 24th. Loop Capital set a $320.00 price objective on shares of Zscaler in a report on Thursday, December 11th. Macquarie Infrastructure started coverage on Zscaler in a report on Friday, October 31st. They issued an “outperform” rating and a $390.00 target price on the stock. Finally, Stifel Nicolaus decreased their target price on Zscaler from $330.00 to $320.00 and set a “buy” rating on the stock in a research report on Wednesday, November 26th. One analyst has rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, six have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $274.37.

Zscaler Stock Performance

NASDAQ ZS opened at $146.99 on Friday. The firm has a market cap of $23.44 billion, a price-to-earnings ratio of -349.98, a price-to-earnings-growth ratio of 299.64 and a beta of 1.02. 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 business has a 50-day moving average price of $198.92 and a 200-day moving average price of $255.06. Zscaler has a twelve month low of $140.56 and a twelve month high of $336.99.

Zscaler (NASDAQ:ZS) last issued its earnings results on Thursday, February 26th. The company reported $1.01 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.89 by $0.12. Zscaler had a positive return on equity of 0.06% and a negative net margin of 2.25%.The company had revenue of $815.75 million for the quarter, compared to the consensus estimate of $798.92 million. During the same quarter last year, the company earned $0.78 EPS. The firm’s quarterly revenue was up 25.9% on a year-over-year basis. 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 research analysts predict that Zscaler will post -0.1 EPS for the current fiscal year.

Insider Buying and Selling at Zscaler

In other news, insider Adam Geller sold 1,620 shares of the business’s stock in a transaction that occurred on Wednesday, December 17th. The stock was sold at an average price of $232.79, for a total transaction of $377,119.80. Following the transaction, the insider owned 50,528 shares of the company’s stock, valued at approximately $11,762,413.12. The trade was a 3.11% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director James A. Beer sold 653 shares of the firm’s stock in a transaction on Friday, January 2nd. The stock was sold at an average price of $226.72, for a total value of $148,048.16. Following the completion of the sale, the director owned 3,485 shares of the company’s stock, valued at approximately $790,119.20. This represents a 15.78% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 19,350 shares of company stock valued at $4,471,509. Corporate insiders own 17.20% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Groupama Asset Managment lifted its holdings in shares of Zscaler by 76,352.6% in the 3rd quarter. Groupama Asset Managment now owns 4,750,000 shares of the company’s stock worth $1,423,385,000 after acquiring an additional 4,743,787 shares during the last quarter. Federated Hermes Inc. raised its position in Zscaler by 314.0% in the 2nd quarter. Federated Hermes Inc. now owns 1,171,983 shares of the company’s stock worth $367,932,000 after purchasing an additional 888,888 shares during the period. Vanguard Group Inc. lifted its stake in Zscaler by 8.3% in the second quarter. Vanguard Group Inc. now owns 10,715,132 shares of the company’s stock worth $3,363,909,000 after purchasing an additional 824,626 shares during the last quarter. Price T Rowe Associates Inc. MD lifted its stake in Zscaler by 43.3% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,572,358 shares of the company’s stock worth $578,576,000 after purchasing an additional 777,414 shares during the last quarter. Finally, AQR Capital Management LLC boosted its position in shares of Zscaler by 61.8% during the third quarter. AQR Capital Management LLC now owns 1,941,571 shares of the company’s stock valued at $576,083,000 after buying an additional 741,756 shares during the period. Institutional investors own 46.45% of the company’s stock.

Trending Headlines about Zscaler

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.