Zscaler (NASDAQ:ZS) Earns Outperform Rating from Royal Bank Of Canada

Zscaler (NASDAQ:ZS)‘s stock had its “outperform” rating reiterated by equities research analysts at Royal Bank Of Canada in a research report issued on Wednesday, Benzinga reports. They presently have a $236.00 target price on the stock. Royal Bank Of Canada’s price objective points to a potential upside of 10.51% from the stock’s current price.

A number of other equities research analysts have also issued reports on the stock. KeyCorp upped their price objective on shares of Zscaler from $185.00 to $210.00 and gave the company an “overweight” rating in a report on Friday, August 21st. Citigroup upped their price objective on shares of Zscaler from $205.00 to $245.00 and gave the company a “buy” rating in a report on Wednesday. BTIG Research reissued a “neutral” rating on shares of Zscaler in a report on Wednesday. Rosenblatt Securities set a $250.00 price objective on shares of Zscaler in a report on Wednesday. Finally, TD Cowen upped their price objective on shares of Zscaler from $200.00 to $230.00 and gave the company a “buy” rating in a report on Wednesday. Thirty-five analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $238.07.

Zscaler Price Performance

NASDAQ ZS traded up $1.30 on Wednesday, hitting $213.55. The company had a trading volume of 2,685,474 shares, compared to its average volume of 3,368,556. The company has a market capitalization of $34.82 billion, a PE ratio of -547.56, a PEG ratio of 21.03 and a beta of 0.94. The company’s fifty day moving average price is $181.94 and its 200-day moving average price is $155.82. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.70 and a quick ratio of 1.70. Zscaler has a 12-month low of $114.63 and a 12-month high of $336.99.

Zscaler (NASDAQ:ZS) last released its earnings results on Thursday, September 3rd. The company reported $1.19 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.09 by $0.10. Zscaler had a negative net margin of 1.88% and a positive return on equity of 1.23%. The business had revenue of $898.19 million during the quarter, compared to analyst estimates of $876.96 million. During the same quarter in the prior year, the firm earned $0.89 earnings per share. The company’s revenue for the quarter 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, analysts predict that Zscaler will post 0.7 earnings per share for the current year.

Insider Buying and Selling at Zscaler

In related news, Director James A. Beer sold 177 shares of the firm’s stock in a transaction that occurred 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 owned 4,030 shares of the company’s stock, valued at $773,800.30. This trade represents a 4.21% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Kevin Rubin sold 519 shares of the firm’s stock in a transaction that occurred 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 trade represents a 1.20% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 29,053 shares of company stock valued at $5,610,165. Corporate insiders own 17.20% of the company’s stock.

Hedge Funds Weigh In On Zscaler

Several hedge funds have recently added to or reduced their stakes in ZS. Parkside Financial Bank & Trust increased its stake in Zscaler by 18.8% in the second quarter. Parkside Financial Bank & Trust now owns 417 shares of the company’s stock valued at $59,000 after acquiring an additional 66 shares during the last quarter. Versant Capital Management Inc increased its stake in Zscaler by 45.6% in the third quarter. Versant Capital Management Inc now owns 230 shares of the company’s stock valued at $46,000 after acquiring an additional 72 shares during the last quarter. Koshinski Asset Management Inc. increased its stake in Zscaler by 2.7% in the first quarter. Koshinski Asset Management Inc. now owns 3,036 shares of the company’s stock valued at $426,000 after acquiring an additional 79 shares during the last quarter. J.W. Cole Advisors Inc. boosted its position in Zscaler by 2.0% during the fourth quarter. J.W. Cole Advisors Inc. now owns 4,106 shares of the company’s stock valued at $908,000 after buying an additional 80 shares during the period. Finally, CX Institutional boosted its position in Zscaler by 15.9% during the third quarter. CX Institutional now owns 611 shares of the company’s stock valued at $122,000 after buying an additional 84 shares during the period. 46.45% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Guidance reaffirmed: Zscaler maintained its first-quarter and fiscal 2027 financial guidance, reducing concerns that recent go-to-market leadership changes could disrupt execution. Management also outlined a long-term path toward $10 billion in annual recurring revenue by fiscal 2031. Zscaler Investor Day announcement
• Positive Sentiment: AI security opportunity: Analysts cited rising demand to secure AI agents, stronger new-customer sales and broader product adoption as potential growth catalysts. Zscaler’s partnership with IBM and Red Hat will combine its Autonomous Application Shield with remediation tools to protect private applications during active vulnerability windows. Zscaler IBM and Red Hat partnership
• Positive Sentiment: Broad analyst support: Cantor Fitzgerald, Baird, Needham, Truist, BNP Paribas Exane, JPMorgan, Wedbush and RBC raised price targets or maintained bullish ratings. Targets included $240 to $285, with Baird at $285 and Cantor at $275, signaling meaningful perceived upside from recent trading levels.
• Positive Sentiment: RBC and Morgan Stanley said new disclosures improve the cross-selling story and expand customer entry points, while Oppenheimer expects AI security and sales investments to support growth.
• Neutral Sentiment: Analyst views remain mixed. BTIG reiterated a neutral rating, and Morgan Stanley raised its target to $185 but kept an equal-weight rating—below the current share price—highlighting valuation and execution risks.
• Negative Sentiment: Jefferies described the $10 billion fiscal 2031 ARR goal as ambitious, making sustained execution essential. A Pomerantz investigation announcement also introduces a potential headline and legal overhang for investors. Pomerantz investor alert

Zscaler Company Profile

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.

The company’s offerings include Zscaler Internet Access, which helps secure internet and software-as-a-service access, and Zscaler Private Access, which provides controlled access to private applications without extending an organization’s network to remote users.