Morgan Stanley cut shares of Zscaler (NASDAQ:ZS – Free Report) from an overweight rating to an equal weight rating in a research report released on Wednesday morning, Marketbeat reports. The brokerage currently has $155.00 price target on the stock, down from their previous price target of $200.00.
Several other research analysts also recently weighed in on the stock. BTIG Research restated a “neutral” rating on shares of Zscaler in a research note on Thursday, April 9th. JPMorgan Chase & Co. decreased their target price on shares of Zscaler from $354.00 to $267.00 and set an “overweight” rating for the company in a research note on Friday, February 20th. Royal Bank Of Canada decreased their target price on shares of Zscaler from $250.00 to $205.00 and set an “outperform” rating for the company in a research note on Friday, February 27th. The Goldman Sachs Group decreased their target price on shares of Zscaler from $290.00 to $257.00 and set a “neutral” rating for the company in a research note on Monday, March 2nd. Finally, Berenberg Bank decreased their target price on shares of Zscaler from $390.00 to $320.00 and set a “buy” rating for the company in a research note on Friday, February 27th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Zscaler currently has an average rating of “Moderate Buy” and a consensus target price of $265.58.
Zscaler Price Performance
Zscaler (NASDAQ:ZS – Get Free Report) last released its quarterly earnings data on Thursday, February 26th. The company reported $1.01 earnings per share (EPS) 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 during the quarter, compared to analyst estimates of $798.92 million. During the same quarter in the prior year, the business earned $0.78 earnings per share. The business’s quarterly revenue 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, analysts predict that Zscaler will post -0.03 EPS for the current year.
Insider Activity
In other Zscaler news, EVP Raj Judge sold 2,488 shares of the stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total transaction of $389,595.92. Following the transaction, the executive vice president directly owned 67,906 shares in the company, valued at $10,633,400.54. This represents a 3.53% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Jagtar Singh Chaudhry sold 1,941 shares of the stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total transaction of $303,941.19. Following the transaction, the chief executive officer owned 345,916 shares in the company, valued at $54,166,986.44. This trade represents a 0.56% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 12,130 shares of company stock worth $1,892,487 over the last ninety days. Insiders own 17.20% of the company’s stock.
Institutional Inflows and Outflows
A number of large investors have recently added to or reduced their stakes in ZS. Binnacle Investments Inc bought a new position in Zscaler during the 3rd quarter valued at $25,000. Tradewinds Capital Management LLC boosted its stake in Zscaler by 145.7% during the 3rd quarter. Tradewinds Capital Management LLC now owns 86 shares of the company’s stock valued at $26,000 after acquiring an additional 51 shares during the last quarter. Root Financial Partners LLC bought a new position in Zscaler during the 3rd quarter valued at $26,000. McIlrath & Eck LLC bought a new position in Zscaler during the 3rd quarter valued at $29,000. Finally, AlphaCentric Advisors LLC bought a new position in Zscaler during the 4th quarter valued at $29,000. 46.45% of the stock is currently owned by institutional investors.
Key Zscaler News
Here are the key news stories impacting Zscaler this week:
- Positive Sentiment: Zscaler won the 2026 Google Cloud Partner of the Year Award for Security, highlighting its role in AI security and Zero Trust integrations with Google Cloud — a clear channel for growth and enterprise adoption. Zscaler’s Google Cloud Award Spotlights AI Security And Zero Trust Growth
- Positive Sentiment: Cybersecurity stocks (including Zscaler) have seen renewed buying as analysts anticipate AI model adoption to drive security spending; Zscaler previously jumped on that sector rebound, reflecting investor appetite for AI-security exposure. Zscaler (ZS) Stock Is Up, What You Need To Know
- Neutral Sentiment: Market coverage pieces note Zscaler’s recent outperformance vs. the market and continued investor interest; these reports mainly summarize price moves and attention rather than new fundamentals. Zscaler (ZS) Surpasses Market Returns: Some Facts Worth Knowing
- Neutral Sentiment: Trending/attention articles (Zacks/Yahoo) show higher retail and analyst interest, which can amplify moves but are not direct catalysts on their own. Is Trending Stock Zscaler, Inc. (ZS) a Buy Now?
- Negative Sentiment: Morgan Stanley downgraded Zscaler from Overweight to Equal Weight and cut its price target to $155 from $200, signaling less conviction in near-term upside and likely tempering institutional demand. Benzinga (Downgrade Report)
- Negative Sentiment: Morgan Stanley also flagged limited platform expansion outside ZIA/ZPA, a reminder that product breadth and cross-sell are areas investors will watch for sustained revenue acceleration. Zscaler Shows Limited Platform Expansion as ZIA, ZPA Remain Growth Engine, Morgan Stanley Says
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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