JPMorgan Chase & Co. Issues Pessimistic Forecast for Zscaler (NASDAQ:ZS) Stock Price

Zscaler (NASDAQ:ZS) had its price target cut by stock analysts at JPMorgan Chase & Co. from $354.00 to $267.00 in a research report issued to clients and investors on Friday,Benzinga reports. The firm presently has an “overweight” rating on the stock. JPMorgan Chase & Co.‘s price target indicates a potential upside of 67.14% from the company’s previous close.

A number of other brokerages have also commented on ZS. Bank of America dropped their price target on Zscaler from $355.00 to $335.00 and set a “buy” rating for the company in a research note on Wednesday, November 26th. Macquarie Infrastructure began coverage on shares of Zscaler in a research report on Friday, October 31st. They issued an “outperform” rating and a $390.00 target price for the company. Citizens Jmp reaffirmed a “market outperform” rating and set a $355.00 target price on shares of Zscaler in a research note on Wednesday, November 26th. Mizuho reduced their price target on shares of Zscaler from $310.00 to $265.00 and set an “outperform” rating on the stock in a research report on Tuesday. Finally, Rosenblatt Securities reissued a “buy” rating and issued a $365.00 price target on shares of Zscaler in a research note on Wednesday, November 26th. One research analyst has rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $304.78.

Zscaler Stock Performance

Zscaler stock opened at $159.75 on Friday. The firm has a fifty day simple moving average of $206.73 and a two-hundred day simple moving average of $259.36. The company has a quick ratio of 1.82, a current ratio of 1.82 and a debt-to-equity ratio of 0.86. Zscaler has a twelve month low of $159.66 and a twelve month high of $336.99. The company has a market capitalization of $25.48 billion, a PE ratio of -614.40, a P/E/G ratio of 325.66 and a beta of 1.02.

Zscaler (NASDAQ:ZS) last released its quarterly earnings data on Tuesday, November 25th. The company reported $0.96 earnings per share for the quarter, beating analysts’ consensus estimates of $0.85 by $0.11. The firm had revenue of $788.11 million during the quarter, compared to analyst estimates of $773.86 million. Zscaler had a negative return on equity of 0.12% and a negative net margin of 1.45%.The business’s quarterly revenue was up 25.5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.77 earnings per share. Zscaler has set its FY 2026 guidance at 3.780-3.820 EPS and its Q2 2026 guidance at 0.890-0.900 EPS. Research analysts expect that Zscaler will post -0.1 EPS for the current year.

Insider Buying and Selling

In other Zscaler news, insider Robert Schlossman sold 3,084 shares of the company’s stock in a transaction on Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total value of $711,848.88. Following the completion of the sale, the insider directly owned 77,002 shares in the company, valued at approximately $17,773,601.64. This represents a 3.85% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Jagtar Singh Chaudhry sold 2,843 shares of the company’s stock in a transaction on Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total value of $656,221.26. Following the completion of the sale, the chief executive officer owned 347,857 shares of the company’s stock, valued at $80,292,352.74. This represents a 0.81% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 19,350 shares of company stock worth $4,471,509 over the last ninety days. Corporate insiders own 17.20% of the company’s stock.

Hedge Funds Weigh In On Zscaler

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

Key Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler and Bharti Airtel launched an AI & Cyber Threat Research Center in India, expanding ZS’s local presence, channel engagement and potential enterprise/government pipeline in a fast-growing market. Article Title
• Positive Sentiment: Zscaler’s Z‑Flex bookings jumped ~70% sequentially to $175M in Q1 FY26 — a sign of larger, multi‑year deals that could boost revenue visibility and margin leverage over time. Article Title
• Positive Sentiment: Management is pushing an AI security suite to address rising enterprise AI risks — product innovation that supports upsell opportunities and differentiates ZS’s platform approach. Article Title
• Neutral Sentiment: India is debating new cyber rules amid growing AI-driven threats; regulatory change could increase enterprise security spending but also introduce compliance complexity. This is a macro/regulatory factor to monitor for regional demand. Article Title
• Neutral Sentiment: JPMorgan cut its price target for ZS from $354 to $267 but kept an Overweight rating — a sizable PT reduction that tempers upside expectations while still signaling conviction in the name. Article Title
• Neutral Sentiment: Comparisons with peers (e.g., Qualys) highlight valuation and execution tradeoffs: ZS’s faster growth vs. some peers’ steadier margins and cheaper multiples — useful context for relative positioning. Article Title
• Negative Sentiment: Analyst note (Seeking Alpha summary) warns Cloudflare is taking share on RPO growth and net retention, and that Palo Alto’s M&A momentum intensifies competition — heightening investor fear of share loss and margin pressure. Article Title
• Negative Sentiment: Truist lowered expectations for Zscaler, adding to a string of cautious analyst notes that have pressured sentiment despite recent beat-and-raise results. Article Title

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.