Zscaler’s (ZS) “Outperform” Rating Reiterated at 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 restated by stock analysts at Royal Bank Of Canada in a research report issued on Wednesday, Benzinga reports. They currently have a $236.00 price objective on the stock. Royal Bank Of Canada’s target price would suggest a potential upside of 11.82% from the company’s previous close.

Several other brokerages have also issued reports on ZS. Scotiabank lifted their price target on shares of Zscaler from $200.00 to $240.00 and gave the company an “outperform” rating in a research note on Monday. Sanford C. Bernstein lifted their price target on shares of Zscaler from $224.00 to $298.00 and gave the company an “outperform” rating in a research note on Thursday, September 17th. TD Cowen lifted their price objective on shares of Zscaler from $200.00 to $230.00 and gave the company a “buy” rating in a research report on Wednesday. Zacks Research raised shares of Zscaler from a “strong sell” rating to a “hold” rating in a report on Friday, October 2nd. Finally, Wedbush lifted their price objective on shares of Zscaler from $215.00 to $240.00 and gave the stock an “outperform” rating in a research note on Wednesday. Thirty-four equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Zscaler has an average rating of “Moderate Buy” and a consensus price target of $234.40.

View Our Latest Stock Report on Zscaler

Zscaler Trading Down 0.6%

ZS stock traded down $1.20 during midday trading on Wednesday, reaching $211.05. The company’s stock had a trading volume of 1,076,282 shares, compared to its average volume of 3,359,522. The business’s 50-day simple moving average is $181.94 and its 200-day simple moving average is $155.82. The company has a quick ratio of 1.70, a current ratio of 1.70 and a debt-to-equity ratio of 0.65. The stock has a market cap of $34.41 billion, a PE ratio of -541.88, a price-to-earnings-growth ratio of 21.03 and a beta of 0.94. Zscaler has a 52 week low of $114.63 and a 52 week high of $336.99.

Zscaler (NASDAQ:ZS – Get Free Report) last posted its earnings results on Thursday, September 3rd. The company reported $1.19 earnings per share for the quarter, topping the consensus estimate of $1.09 by $0.10. The company had revenue of $898.19 million for the quarter, compared to analyst estimates of $876.96 million. Zscaler had a negative net margin of 1.88% and a positive return on equity of 1.23%. The business’s revenue for the quarter was up 24.9% compared to the same quarter last year. During the same period last year, the business posted $0.89 earnings per share. 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 expect that Zscaler will post 0.7 EPS for the current year.

Insider Activity

In other news, Director James A. Beer sold 177 shares of the company’s stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $192.01, for a total value of $33,985.77. Following the sale, the director directly owned 4,030 shares of the company’s stock, valued at approximately $773,800.30. This represents a 4.21% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Kevin Rubin sold 519 shares of the company’s stock in a transaction on Friday, September 25th. The shares were sold at an average price of $197.28, for a total transaction of $102,388.32. Following the completion of the sale, the chief financial officer directly owned 42,768 shares in the company, valued at approximately $8,437,271.04. This represents a 1.20% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 29,053 shares of company stock worth $5,610,165. Company insiders own 17.20% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. Burkett Financial Services LLC bought a new position in Zscaler during the third quarter worth $27,000. University of Texas Texas AM Investment Management Co. bought a new position in Zscaler during the fourth quarter worth about $30,000. Reflection Asset Management purchased a new position in Zscaler during the fourth quarter valued at approximately $40,000. POM Investment Strategies LLC grew its stake in Zscaler by 92.9% in the 2nd quarter. POM Investment Strategies LLC now owns 218 shares of the company’s stock worth $31,000 after buying an additional 105 shares in the last quarter. Finally, Versant Capital Management Inc lifted its holdings in shares of Zscaler by 45.6% in the 3rd quarter. Versant Capital Management Inc now owns 230 shares of the company’s stock worth $46,000 after acquiring an additional 72 shares during the last quarter. 46.45% of the stock is owned by institutional investors.

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 guidance, reducing near-term execution concerns. Management also highlighted AI-driven demand, expansion beyond its core user-security business, and a long-term path toward approximately $10 billion in annual recurring revenue. Zscaler Investor Day and fiscal 2027 guidance
Positive Sentiment: Analysts raised price targets: Needham lifted its target to $255 and upgraded ZS to Buy; Cantor Fitzgerald raised its target to $275; Robert W. Baird increased its target to $285; and Wedbush raised its target to $240 while reiterating Outperform. RBC also maintained Outperform with a $236 target. The upgrades suggest analysts see additional upside after the Investor Day presentation.
Positive Sentiment: AI security opportunity expanded: Zscaler announced a collaboration with IBM and Red Hat to protect private applications during vulnerability windows. The partnership combines Zscaler’s Autonomous Application Shield with remediation tools from IBM and Red Hat, potentially broadening Zscaler’s enterprise reach as companies address AI-enabled cyber threats. Zscaler IBM and Red Hat partnership
Neutral Sentiment: Analyst disagreement remains: BTIG reaffirmed a Neutral rating, while Morgan Stanley raised its target to $185 but kept an Equal Weight rating. Morgan Stanley’s target remains below the current trading level, highlighting valuation and execution concerns ahead of the next earnings report.
Negative Sentiment: Investor lawsuit inquiry: Pomerantz LLP announced an investigation into potential claims on behalf of Zscaler investors. No allegations or findings were detailed, but such announcements can create headline and legal overhang for the stock. Pomerantz Zscaler investor investigation

About Zscaler

(Get Free Report)

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.