Zscaler (NASDAQ:ZS) Upgraded at Wells Fargo & Company

Wells Fargo & Company upgraded shares of Zscaler (NASDAQ:ZS) to a strong-buy rating in a report published on Monday,Zacks.com reports.

Several other brokerages have also issued reports on ZS. HC Wainwright reaffirmed a “buy” rating on shares of Zscaler in a research report on Wednesday, November 26th. Robert W. Baird reduced their price target on shares of Zscaler from $360.00 to $300.00 and set an “outperform” rating for the company in a research report on Monday, February 23rd. Canaccord Genuity Group lowered their price objective on shares of Zscaler from $340.00 to $275.00 and set a “buy” rating on the stock in a research report on Friday, February 27th. Truist Financial dropped their target price on shares of Zscaler from $350.00 to $250.00 and set a “buy” rating on the stock in a research note on Tuesday, February 17th. Finally, Capital One Financial set a $320.00 target price on shares of Zscaler and gave the company an “overweight” rating in a research report on Wednesday, November 26th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, six have issued a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Zscaler presently has a consensus rating of “Moderate Buy” and a consensus price target of $267.92.

Zscaler Trading Up 1.0%

NASDAQ:ZS opened at $156.21 on Monday. Zscaler has a 52 week low of $140.56 and a 52 week high of $336.99. The firm has a 50-day moving average price of $194.30 and a two-hundred day moving average price of $252.51. The company has a debt-to-equity ratio of 0.78, a quick ratio of 1.90 and a current ratio of 1.90. The firm has a market cap of $25.12 billion, a price-to-earnings ratio of -371.93, a price-to-earnings-growth ratio of 642.19 and a beta of 1.07.

Zscaler (NASDAQ:ZS) last released 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. The company had revenue of $815.75 million during the quarter, compared to analyst estimates of $798.92 million. Zscaler had a positive return on equity of 0.06% and a negative net margin of 2.25%.Zscaler’s quarterly revenue was up 25.9% on a year-over-year basis. During the same period in the prior year, the company posted $0.78 earnings per share. Zscaler has set its Q3 2026 guidance at 1.000-1.010 EPS and its FY 2026 guidance at 3.990-4.020 EPS. On average, equities analysts expect that Zscaler will post -0.1 earnings per share for the current fiscal year.

Insider Transactions at Zscaler

In other news, insider Robert Schlossman sold 2,349 shares of the business’s stock in a transaction that occurred on Wednesday, December 17th. The shares were sold at an average price of $232.79, for a total transaction of $546,823.71. Following the completion of the transaction, the insider directly owned 74,653 shares of the company’s stock, valued at $17,378,471.87. The trade was a 3.05% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director James A. Beer sold 653 shares of the firm’s stock in a transaction that occurred on Friday, January 2nd. The stock was sold at an average price of $226.72, for a total transaction of $148,048.16. Following the completion of the sale, the director owned 3,485 shares in the company, valued at $790,119.20. This represents a 15.78% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 19,350 shares of company stock valued at $4,471,509. Company insiders own 17.20% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of ZS. Integrated Wealth Concepts LLC raised its holdings in Zscaler by 19.9% in the 1st quarter. Integrated Wealth Concepts LLC now owns 1,439 shares of the company’s stock worth $285,000 after purchasing an additional 239 shares during the period. NewEdge Advisors LLC increased its position in Zscaler by 8.2% in the first quarter. NewEdge Advisors LLC now owns 4,899 shares of the company’s stock worth $972,000 after buying an additional 370 shares in the last quarter. Empowered Funds LLC increased its position in Zscaler by 9.2% in the first quarter. Empowered Funds LLC now owns 2,811 shares of the company’s stock worth $558,000 after buying an additional 238 shares in the last quarter. Sivia Capital Partners LLC bought a new position in shares of Zscaler in the second quarter worth about $252,000. Finally, Nisa Investment Advisors LLC lifted its position in shares of Zscaler by 14.6% during the 2nd quarter. Nisa Investment Advisors LLC now owns 533 shares of the company’s stock valued at $167,000 after buying an additional 68 shares in the last quarter. Hedge funds and other institutional investors own 46.45% of the company’s stock.

Key Stories Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Wells Fargo initiated coverage with an “Overweight” / $200 price target (and other outlets report a “strong‑buy” view), signaling fresh institutional conviction and providing upside vs. the current level. This likely supports buying interest. Zscaler receives Overweight rating as Wells Fargo initiates coverage
• Positive Sentiment: Zscaler reported stronger‑than‑expected FQ2 2026 results (revenue ~$816M, ARR +25% to $3.4B) and raised FY guidance, validating enterprise demand for its cloud security platform and supporting longer‑term growth expectations. Zscaler (ZS) Reports Record FQ2 2026 Revenue Driven by Massive Enterprise Adoption
• Positive Sentiment: Strategic partnerships and product expansion — notably an AI & Cyber Threat Research Center with Bharti Airtel and an expanded TCS partnership for AI‑powered solutions — bolster growth avenues in large and fast‑growing markets (India and enterprise AI/security). Zscaler Airtel AI Research Hub Tests Growth Potential Versus Rising Losses TCS Expands Strategic Partnership with Zscaler
• Neutral Sentiment: Media pieces are dissecting whether Wall Street’s bullish analyst consensus is a reliable buy signal; these narratives can create short‑term headline volatility but don’t change fundamentals. Is It Worth Investing in Zscaler (ZS) Based on Wall Street’s Bullish Views? Zacks analyst commentary
• Neutral Sentiment: Zscaler presented at the Morgan Stanley TMT conference; such investor events help reiterate strategy and can influence sentiment if management provides new guidance or color. Zscaler presentation transcript
• Negative Sentiment: Unusually high put‑option activity (≈40,282 puts, +85% vs. typical volume) suggests elevated bearish positioning or hedging by traders, which can amplify downside pressure or volatility near-term.
• Negative Sentiment: Citigroup has lowered its expectations for ZS, reflecting some sell‑side concern about near‑term valuation or growth risk; downward analyst revisions can weigh on the stock until offset by new positive catalysts. Citigroup Has Lowered Expectations for Zscaler

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.