The Goldman Sachs Group Has Lowered Expectations for Zscaler (NASDAQ:ZS) Stock Price

Zscaler (NASDAQ:ZS) had its target price dropped by stock analysts at The Goldman Sachs Group from $290.00 to $257.00 in a research note issued on Monday,Benzinga reports. The brokerage currently has a “neutral” rating on the stock. The Goldman Sachs Group’s price objective would indicate a potential upside of 72.52% from the company’s previous close.

ZS has been the subject of several other reports. Zacks Research cut Zscaler from a “hold” rating to a “strong sell” rating in a research report on Thursday. Mizuho dropped their target price on shares of Zscaler from $265.00 to $250.00 and set an “outperform” rating on the stock in a report on Friday. KeyCorp cut their price objective on Zscaler from $300.00 to $250.00 and set an “overweight” rating for the company in a research report on Tuesday, February 17th. Sanford C. Bernstein upgraded shares of Zscaler from a “market perform” rating to an “outperform” rating and set a $228.00 price objective on the stock in a report on Friday, February 13th. Finally, UBS Group lowered their price target on shares of Zscaler from $350.00 to $340.00 and set a “buy” rating on the stock in a report on Wednesday, November 26th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating, six have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $275.68.

Zscaler Stock Up 1.3%

Shares of Zscaler stock traded up $1.98 on Monday, hitting $148.97. The company had a trading volume of 2,495,639 shares, compared to its average volume of 2,702,153. The firm has a market capitalization of $23.76 billion, a P/E ratio of -354.35, a P/E/G ratio of 217.30 and a beta of 1.02. The company has a debt-to-equity ratio of 0.78, a current ratio of 1.90 and a quick ratio of 1.90. Zscaler has a twelve month low of $140.56 and a twelve month high of $336.99. The stock has a 50-day moving average of $198.92 and a 200-day moving average of $254.90.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings data 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 company had revenue of $815.75 million during the quarter, compared to analysts’ expectations of $798.92 million. Zscaler had a positive return on equity of 0.06% and a negative net margin of 2.25%.Zscaler’s revenue for the quarter was up 25.9% compared to the same quarter last year. During the same period in the prior year, the firm 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. Research analysts predict that Zscaler will post -0.1 earnings per share for the current year.

Insider Transactions at Zscaler

In related news, Director James A. Beer sold 653 shares of Zscaler stock in a transaction that occurred on Friday, January 2nd. The stock was sold at an average price of $226.72, for a total transaction of $148,048.16. Following the sale, the director directly owned 3,485 shares in the company, valued at $790,119.20. The trade was a 15.78% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Raj Judge sold 3,438 shares of the company’s stock in a transaction on Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total value of $793,559.16. Following the completion of the sale, the executive vice president directly owned 70,394 shares in the company, valued at approximately $16,248,343.08. The trade was a 4.66% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 19,350 shares of company stock worth $4,471,509. Corporate insiders own 17.20% of the company’s stock.

Institutional Investors Weigh In On Zscaler

Large investors have recently bought and sold shares of the business. Groupama Asset Managment boosted its holdings in shares of Zscaler by 76,352.6% during the 3rd quarter. Groupama Asset Managment now owns 4,750,000 shares of the company’s stock valued at $1,423,385,000 after acquiring an additional 4,743,787 shares during the last quarter. Federated Hermes Inc. lifted its position in Zscaler by 314.0% during the second quarter. Federated Hermes Inc. now owns 1,171,983 shares of the company’s stock valued at $367,932,000 after purchasing an additional 888,888 shares during the period. Vanguard Group Inc. grew its position in Zscaler by 8.3% in the 2nd quarter. Vanguard Group Inc. now owns 10,715,132 shares of the company’s stock worth $3,363,909,000 after purchasing an additional 824,626 shares during the period. Price T Rowe Associates Inc. MD raised its stake in Zscaler by 43.3% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 2,572,358 shares of the company’s stock valued at $578,576,000 after buying an additional 777,414 shares during the last quarter. Finally, AQR Capital Management LLC lifted its holdings in shares of Zscaler by 61.8% during the 3rd quarter. AQR Capital Management LLC now owns 1,941,571 shares of the company’s stock valued at $576,083,000 after buying an additional 741,756 shares during the period. 46.45% of the stock is currently owned by institutional investors.

Key Zscaler News

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler launched an AI & Cyber Threat Research Center with Bharti Airtel in India, a strategic expansion that strengthens its footprint in a high‑growth market and supports adoption of its cloud‑native, zero‑trust platform. This is a tangible growth/market‑access catalyst for international revenue growth. Read More.
• Positive Sentiment: Market commentary is framing Zscaler as an oversold growth leader and a “buy the dip” opportunity, arguing valuation and technical signals support accumulation by institutions—this narrative can attract bargain‑hunters and short‑covering flows. Read More.
• Neutral Sentiment: Zacks highlights shifting international revenue trends for Zscaler and suggests these trends deserve attention because they affect Wall Street forecasts and the stock’s longer‑term growth profile; improved overseas growth would be constructive but details and pace matter. Read More.
• Neutral Sentiment: A Zacks piece notes Zscaler is trending among readers and summarizes factors that could influence the stock (growth trajectory, valuation, competitive position). Useful context for sentiment but not a direct catalyst. Read More.
• Negative Sentiment: Multiple brokers cut Zscaler price targets this morning, reflecting lowered near‑term expectations and adding selling pressure. Notable cuts include Mizuho, RBC, Morgan Stanley, Oppenheimer, BMO, Piper Sandler, Needham, Citizens Jmp and Berenberg — these revisions increase headline risk and may cap near‑term upside. Links to the reports: Read More., Read More., Read More., Read More., Read More., Read More., Read More., Read More., Read More..

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.