Zscaler (NASDAQ:ZS) Stock Rating Reaffirmed as Outperform by Royal Bank Of Canada

07 Oct 2026, 10:24 by Amy Steele · The Cerbat Gem

Zscaler (NASDAQ:ZS – Get Free Report)‘s stock had its “outperform” rating reissued by equities researchers at Royal Bank Of Canada in a research report issued to clients and investors on Wednesday, Benzinga reports. They currently have a $236.00 target price on the stock. Royal Bank Of Canada’s price objective suggests a potential upside of 11.35% from the company’s previous close.

Other equities analysts have also issued research reports about the company. Sanford C. Bernstein boosted their target price on Zscaler from $224.00 to $298.00 and gave the stock an “outperform” rating in a research report on Thursday, September 17th. JPMorgan Chase & Co. boosted their target price on shares of Zscaler from $205.00 to $215.00 and gave the company an “overweight” rating in a research note on Wednesday, August 26th. Zacks Research raised shares of Zscaler from a “strong sell” rating to a “hold” rating in a research report on Friday, October 2nd. Stephens restated an “overweight” rating and issued a $265.00 price objective on shares of Zscaler in a research note on Wednesday. Finally, Scotiabank upped their price objective on Zscaler from $200.00 to $240.00 and gave the stock an “outperform” rating in a research note on Monday. Thirty-four analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $233.28.

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Zscaler Stock Down 0.1%

Zscaler stock traded down $0.31 on Wednesday, hitting $211.94. 649,034 shares of the stock traded hands, compared to its average volume of 3,356,794. The business’s fifty day simple moving average is $181.94 and its 200 day simple moving average is $155.82. Zscaler has a 1 year low of $114.63 and a 1 year high of $336.99. The firm has a market cap of $34.56 billion, a P/E ratio of -542.62, a price-to-earnings-growth ratio of 21.03 and a beta of 0.94. The company has a current ratio of 1.70, a quick ratio of 1.70 and a debt-to-equity ratio of 0.65.

Zscaler (NASDAQ:ZS – Get Free Report) last posted its quarterly earnings results on Thursday, September 3rd. The company reported $1.19 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.09 by $0.10. Zscaler had a positive return on equity of 1.23% and a negative net margin of 1.88%.The firm had revenue of $898.19 million during the quarter, compared to analyst estimates of $876.96 million. During the same quarter in the previous year, the firm earned $0.89 EPS. Zscaler’s quarterly revenue was up 24.9% compared to the same quarter last year. Zscaler has set its FY 2027 guidance at 4.860-4.900 EPS and its Q1 2027 guidance at 1.150-1.160 EPS. As a group, sell-side analysts forecast that Zscaler will post 0.7 earnings per share for the current year.

Insiders Place Their Bets

In other Zscaler news, insider Robert Schlossman sold 5,394 shares of the stock in a transaction dated Monday, September 21st. The shares were sold at an average price of $200.00, for a total value of $1,078,800.00. Following the completion of the transaction, the insider directly owned 61,525 shares of the company’s stock, valued at approximately $12,305,000. This trade represents a 8.06% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Kevin Rubin sold 5,957 shares of the stock in a transaction on Wednesday, September 16th. The shares were sold at an average price of $192.76, for a total value of $1,148,271.32. Following the sale, the chief financial officer directly owned 43,287 shares in the company, valued at approximately $8,344,002.12. The trade was a 12.10% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 29,053 shares of company stock worth $5,610,165. Insiders own 17.20% of the company’s stock.

Hedge Funds Weigh In On Zscaler

A number of institutional investors have recently added to or reduced their stakes in the company. Burkett Financial Services LLC acquired a new stake in shares of Zscaler in the 3rd quarter valued at $27,000. University of Texas Texas AM Investment Management Co. acquired a new stake in shares of Zscaler in the 4th quarter valued at $30,000. POM Investment Strategies LLC boosted its holdings in shares of Zscaler by 92.9% in the 2nd quarter. POM Investment Strategies LLC now owns 218 shares of the company’s stock valued at $31,000 after purchasing an additional 105 shares in the last quarter. Western Wealth Management LLC acquired a new stake in shares of Zscaler in the 1st quarter valued at approximately $33,000. Finally, Reflection Asset Management acquired a new stake in shares of Zscaler in the 4th quarter valued at approximately $40,000. 46.45% of the stock is currently owned by institutional investors and hedge funds.

More Zscaler News

Here are the key news stories impacting Zscaler this week:

Positive Sentiment: Investor Day guidance reaffirmed: Zscaler maintained its first-quarter and full-year fiscal 2027 outlook, reducing near-term execution concerns. Management highlighted demand for zero-trust security as enterprises adopt AI and AI agents. Zscaler Hosts 2026 Investor Day, Reaffirms First Quarter and Fiscal 2027 Guidance
Positive Sentiment: Multiple bullish target increases: Robert W. Baird raised its target to $285 and maintained an outperform rating; Cantor Fitzgerald raised its target to $275 and assigned overweight; Needham lifted its target to $255 and assigned buy; and Wedbush raised its target to $240 with an outperform rating. These revisions indicate improving Wall Street expectations following the event.
Positive Sentiment: AI cybersecurity opportunity: Analysts cited Zscaler’s expansion beyond core user security, new customer entry points, stronger cash-flow potential and a broader role in securing AI systems. The company’s long-term strategy reportedly includes an $8 billion-plus annual recurring revenue opportunity and a $10 billion ARR target by fiscal 2031. ZS Stock Draws Multiple Target Hikes After Investor Day
Positive Sentiment: IBM and Red Hat partnership: Zscaler will combine its Autonomous Application Shield with IBM and Red Hat remediation tools to protect private applications during vulnerability windows, including attacks supported by AI. The deal could strengthen Zscaler’s enterprise distribution and product positioning. Zscaler Unveils New Private App Security Partnership
Neutral Sentiment: Mixed analyst views: BTIG reaffirmed a neutral rating, while Morgan Stanley raised its target to $185 but retained equal weight—below the current trading level. This suggests valuation remains a concern despite the improved outlook.
Negative Sentiment: Investor-law-firm investigation: Pomerantz announced an investigation into potential claims on behalf of Zscaler investors. The notice provides no findings, but such announcements can create headline and litigation overhang. Pomerantz Investor Alert

About Zscaler

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Zscaler, Inc is a cloud-based cybersecurity company that provides security services designed to help organizations connect users, applications, devices and workloads securely. Its platform is built around a zero-trust security model, which verifies access based on identity, context and policy rather than relying primarily on traditional network perimeters.