Zscaler (NASDAQ:ZS) Rating Increased to Hold at Zacks Research

29 May 2026, 08:10 by Scott Moore · The Cerbat Gem

Zscaler (NASDAQ:ZS – Get Free Report) was upgraded by equities researchers at Zacks Research from a “strong sell” rating to a “hold” rating in a report released on Wednesday,Zacks.com reports.

ZS has been the subject of a number of other reports. Evercore set a $155.00 target price on Zscaler and gave the stock an “in-line” rating in a research report on Wednesday. Sanford C. Bernstein decreased their target price on Zscaler from $228.00 to $224.00 and set an “outperform” rating for the company in a research report on Wednesday. Canaccord Genuity Group decreased their target price on Zscaler from $275.00 to $210.00 and set a “buy” rating for the company in a research report on Wednesday. Citigroup reissued a “market outperform” rating on shares of Zscaler in a research report on Wednesday. Finally, Scotiabank decreased their target price on Zscaler from $190.00 to $175.00 and set a “sector outperform” rating for the company in a research report on Wednesday. Thirty-two equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $216.08.

Check Out Our Latest Analysis on ZS

Zscaler Stock Performance

Shares of Zscaler stock opened at $130.04 on Wednesday. The business’s fifty day simple moving average is $144.69 and its 200 day simple moving average is $189.97. The firm has a market capitalization of $21.03 billion, a P/E ratio of -270.91 and a beta of 0.96. Zscaler has a 12 month low of $114.63 and a 12 month high of $336.99. The company has a current ratio of 1.86, a quick ratio of 1.90 and a debt-to-equity ratio of 0.72.

Zscaler (NASDAQ:ZS – Get Free Report) last issued its quarterly earnings results on Tuesday, May 26th. The company reported $1.08 EPS for the quarter, topping analysts’ consensus estimates of $1.01 by $0.07. Zscaler had a negative return on equity of 0.37% and a negative net margin of 2.44%.The business had revenue of $850.48 million for the quarter, compared to analyst estimates of $835.14 million. During the same period last year, the company posted $0.84 earnings per share. Zscaler’s quarterly revenue was up 25.4% compared to the same quarter last year. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. As a group, analysts anticipate that Zscaler will post -0.03 EPS for the current year.

Insider Transactions at Zscaler

In other news, EVP Raj Judge sold 2,488 shares of the firm’s stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total value of $389,595.92. Following the completion of the transaction, the executive vice president directly owned 67,906 shares of the company’s stock, valued at $10,633,400.54. This trade represents a 3.53% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Jagtar Singh Chaudhry sold 1,941 shares of the firm’s stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total value of $303,941.19. Following the completion of the transaction, the chief executive officer directly owned 345,916 shares of the company’s stock, valued at $54,166,986.44. The trade was a 0.56% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 12,130 shares of company stock valued at $1,892,487. 17.20% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Zscaler

Large investors have recently made changes to their positions in the stock. Binnacle Investments Inc bought a new position in shares of Zscaler in the third quarter worth $25,000. AlphaCentric Advisors LLC bought a new stake in Zscaler during the fourth quarter valued at $29,000. Picton Mahoney Asset Management bought a new stake in Zscaler during the third quarter valued at $30,000. University of Texas Texas AM Investment Management Co. bought a new stake in Zscaler during the fourth quarter valued at $30,000. Finally, Mcguire Capital Advisors Inc. bought a new stake in Zscaler during the fourth quarter valued at $32,000. 46.45% of the stock is owned by institutional investors.

Key Zscaler News

Here are the key news stories impacting Zscaler this week:

Positive Sentiment: Zscaler beat quarterly expectations, with revenue and earnings topping estimates and annual recurring revenue still growing strongly, which suggests underlying demand remains healthy.
Positive Sentiment: Several analysts reiterated positive ratings after the report, arguing that strong net retention and Zero Trust demand could support a recovery if execution improves.
Neutral Sentiment: Multiple law firms announced investigations into possible securities claims after the stock’s decline, adding headline noise but not changing fundamentals directly.
Negative Sentiment: The company’s cautious forward guidance, especially for revenue growth and customer acquisition, raised concerns that growth may slow more than investors expected.
Negative Sentiment: Management pointed to sales leadership departures and a transition in the sales organization, which fueled worries about near-term pipeline and execution risk.

About Zscaler

(Get Free Report)

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.