Zscaler (NASDAQ:ZS) Price Target Lowered to $185.00 at Piper Sandler

Zscaler (NASDAQ:ZS) had its target price decreased by Piper Sandler from $260.00 to $185.00 in a research note released on Friday,Benzinga reports. Piper Sandler currently has a neutral rating on the stock.

Other equities analysts also recently issued reports about the stock. Citigroup dropped their target price on shares of Zscaler from $350.00 to $305.00 and set a “buy” rating on the stock in a research note on Tuesday, January 13th. Loop Capital set a $320.00 price objective on Zscaler in a research note on Thursday, December 11th. Capital One Financial set a $320.00 target price on Zscaler and gave the company an “overweight” rating in a research report on Wednesday, November 26th. Mizuho lowered their target price on Zscaler from $310.00 to $265.00 and set an “outperform” rating for the company in a report on Tuesday, February 17th. Finally, Royal Bank Of Canada reissued an “outperform” rating and set a $250.00 price target on shares of Zscaler in a research report on Wednesday, February 11th. One analyst has rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, six have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $274.37.

Zscaler Trading Down 12.2%

Zscaler stock traded down $20.37 during mid-day trading on Friday, hitting $146.99. The company’s stock had a trading volume of 11,080,725 shares, compared to its average volume of 3,018,555. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.82 and a current ratio of 1.82. The company has a 50 day moving average of $198.92 and a 200-day moving average of $255.20. Zscaler has a one year low of $140.56 and a one year high of $336.99. The stock has a market cap of $23.44 billion, a PE ratio of -349.98, a P/E/G ratio of 341.17 and a beta of 1.02.

Zscaler (NASDAQ:ZS) last released its earnings results on Thursday, February 26th. The company reported $1.01 earnings per share for the quarter, topping the consensus estimate of $0.89 by $0.12. The business had revenue of $815.75 million during the quarter, compared to the consensus estimate of $798.92 million. Zscaler had a positive return on equity of 0.06% and a negative net margin of 2.25%.The business’s revenue for the quarter was up 25.9% compared to the same quarter last year. During the same period last year, the company earned $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, research analysts anticipate that Zscaler will post -0.1 EPS for the current year.

Insider Buying and Selling

In related news, insider Adam Geller sold 1,620 shares of the stock in a transaction that occurred on Wednesday, December 17th. The shares were sold at an average price of $232.79, for a total value of $377,119.80. Following the completion of the transaction, the insider directly owned 50,528 shares of the company’s stock, valued at $11,762,413.12. This trade represents a 3.11% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Robert Schlossman sold 2,349 shares of Zscaler stock in a transaction that occurred on Wednesday, December 17th. The stock was sold at an average price of $232.79, for a total transaction of $546,823.71. Following the completion of the sale, the insider owned 74,653 shares of the company’s stock, valued at $17,378,471.87. This trade represents a 3.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 19,350 shares of company stock valued at $4,471,509 in the last 90 days. 17.20% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Westpac Banking Corp grew its stake in shares of Zscaler by 919.0% in the 3rd quarter. Westpac Banking Corp now owns 9,986 shares of the company’s stock valued at $2,992,000 after buying an additional 9,006 shares during the period. VestGen Advisors LLC acquired a new position in Zscaler in the second quarter valued at approximately $1,592,000. Mackenzie Financial Corp lifted its holdings in Zscaler by 133.6% in the second quarter. Mackenzie Financial Corp now owns 14,780 shares of the company’s stock valued at $4,640,000 after acquiring an additional 8,454 shares during the last quarter. Schroder Investment Management Group grew its position in Zscaler by 11.5% in the second quarter. Schroder Investment Management Group now owns 164,061 shares of the company’s stock worth $51,505,000 after acquiring an additional 16,868 shares during the period. Finally, Ensign Peak Advisors Inc increased its stake in Zscaler by 9.9% during the second quarter. Ensign Peak Advisors Inc now owns 395,391 shares of the company’s stock worth $124,129,000 after acquiring an additional 35,770 shares during the last quarter. Hedge funds and other institutional investors own 46.45% of the company’s stock.

Key Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Q2 results beat: adjusted EPS $1.01 vs. $0.89 est., revenue $815.8M vs. ~$799M est., and ARR grew ~25% year/year — signals demand momentum. GlobeNewswire: Q2 Results
• Positive Sentiment: Management is pitching AI security growth and new initiatives (AI Guard, agentic security, India AI/Cyber center with Airtel) as durable secular drivers that expand TAM beyond seat-based SaaS. CFO Interview Airtel AI Center
• Neutral Sentiment: Management issued updated forward guidance and commentary (Q3 EPS range and FY EPS range were provided), creating mixed signals that markets are parsing. Earnings Highlights
• Neutral Sentiment: Executives (CEO & CFO) gave interviews and the full call transcript is available — useful for investors wanting detail on churn, acquisitions and how AI monetization will scale. Earnings Call Transcript
• Negative Sentiment: Wider GAAP loss and higher spending: the company posted a larger net loss driven by increased sales, marketing and R&D, which pressured investor sentiment. Reuters: Wider Loss
• Negative Sentiment: Mixed/uncertain revenue outlook commentary: some outlets reported the company lowered aspects of its revenue outlook, creating confusion and weighing on the stock despite EPS beats. Benzinga: Revenue Guidance Report
• Negative Sentiment: Broad analyst price‑target cuts today from multiple firms (Canaccord, Morgan Stanley, Oppenheimer, Berenberg, Needham, and others) have amplified selling pressure even as many kept “buy/outperform” stances — the cuts compress perception of near‑term upside. MarketScreener: Analyst Cuts
• Negative Sentiment: Market reaction: investors appear to be focusing on margin/expense trajectory, competitive pressure and near-term revenue clarity rather than the company’s AI growth story — producing the stock decline. Seeking Alpha: Market Reaction

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.