Oppenheimer Cuts Zscaler (NASDAQ:ZS) Price Target to $280.00

Zscaler (NASDAQ:ZS) had its target price reduced by Oppenheimer from $345.00 to $280.00 in a research note issued on Friday,Benzinga reports. The brokerage currently has an “outperform” rating on the stock. Oppenheimer’s price objective would suggest a potential upside of 97.92% from the company’s current price.

Several other brokerages have also recently commented on ZS. Wedbush boosted their price target on shares of Zscaler from $330.00 to $350.00 and gave the stock an “outperform” rating in a research note on Monday, November 10th. Scotiabank decreased their target price on Zscaler from $334.00 to $320.00 and set a “sector outperform” rating on the stock in a research report on Wednesday, November 26th. Cantor Fitzgerald dropped their price target on Zscaler from $365.00 to $300.00 and set an “overweight” rating for the company in a research note on Tuesday. Berenberg Bank reduced their price objective on Zscaler from $390.00 to $320.00 and set a “buy” rating on the stock in a research note on Friday. Finally, Stifel Nicolaus reduced their price target on shares of Zscaler from $330.00 to $320.00 and set a “buy” rating on the stock in a research report on Wednesday, November 26th. One investment analyst has rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $277.66.

Zscaler Stock Performance

Zscaler stock traded down $25.89 during midday trading on Friday, hitting $141.47. The stock had a trading volume of 6,123,441 shares, compared to its average volume of 2,569,779. Zscaler has a 52-week low of $141.21 and a 52-week high of $336.99. The company has a current ratio of 1.82, a quick ratio of 1.82 and a debt-to-equity ratio of 0.86. The company has a market capitalization of $22.56 billion, a PE ratio of -546.28, a P/E/G ratio of 317.40 and a beta of 1.02. The firm’s fifty day moving average is $200.63 and its two-hundred day moving average is $256.06.

Zscaler (NASDAQ:ZS) last announced its quarterly earnings data on Thursday, February 26th. The company reported $1.01 EPS for the quarter, beating the consensus estimate of $0.89 by $0.12. Zscaler had a negative return on equity of 0.12% and a negative net margin of 1.45%.The business had revenue of $815.75 million for the quarter, compared to the consensus estimate of $798.92 million. During the same period in the previous year, the business earned $0.78 earnings per share. The business’s revenue was up 25.9% on a year-over-year basis. 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 forecast that Zscaler will post -0.1 EPS for the current year.

Insider Activity at Zscaler

In other Zscaler news, insider Robert Schlossman sold 3,084 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 $711,848.88. Following the transaction, the insider owned 77,002 shares of the company’s stock, valued at $17,773,601.64. This represents a 3.85% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, EVP Raj Judge sold 3,438 shares of Zscaler stock in a transaction dated Tuesday, December 16th. The shares were sold at an average price of $230.82, for a total transaction of $793,559.16. Following the sale, the executive vice president owned 70,394 shares of the company’s stock, valued at $16,248,343.08. The trade was a 4.66% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 19,350 shares of company stock worth $4,471,509 over the last quarter. 17.20% of the stock is owned by insiders.

Hedge Funds Weigh In On Zscaler

Several institutional investors have recently made changes to their positions in ZS. Bessemer Group Inc. raised its holdings in shares of Zscaler by 3.2% in the 3rd quarter. Bessemer Group Inc. now owns 1,021 shares of the company’s stock valued at $306,000 after purchasing an additional 32 shares in the last quarter. Cox Capital Mgt LLC raised its stake in Zscaler by 0.6% in the third quarter. Cox Capital Mgt LLC now owns 5,576 shares of the company’s stock worth $1,671,000 after buying an additional 33 shares in the last quarter. Brookstone Capital Management raised its stake in Zscaler by 3.7% in the third quarter. Brookstone Capital Management now owns 936 shares of the company’s stock worth $280,000 after buying an additional 33 shares in the last quarter. Wedbush Securities Inc. lifted its holdings in Zscaler by 0.7% during the third quarter. Wedbush Securities Inc. now owns 5,129 shares of the company’s stock worth $1,537,000 after buying an additional 34 shares during the period. Finally, Goldstream Capital Management Ltd boosted its position in Zscaler by 0.3% during the 3rd quarter. Goldstream Capital Management Ltd now owns 12,450 shares of the company’s stock valued at $3,731,000 after acquiring an additional 34 shares in the last quarter. Hedge funds and other institutional investors own 46.45% of the company’s stock.

Trending Headlines about Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Q2 results beat: Zscaler reported $1.01 EPS vs. $0.89 expected and revenue of $815.8M (vs. ~$798.9M consensus); ARR grew ~25% to $3.36B and the company raised ARR targets and pushed FY/Q3 EPS guidance above prior consensus. Zscaler press release
• Positive Sentiment: AI momentum and business expansion: Management highlighted AI security growth and product demand; Zscaler opened an AI & Cyber Threat Research Center in India with Bharti Airtel, underlining international expansion and AI/security commercialization potential. Zscaler Airtel AI Cyber Center
• Neutral Sentiment: Earnings call / analyst writeups show strong ARR and AI commentary but note near-term execution noise (acquisition-related churn, competition). These details matter for medium-term growth but are less immediately actionable than today’s analyst moves. Earnings highlights
• Negative Sentiment: Wider GAAP loss & spending: Zscaler reported a wider net loss driven by higher sales, marketing and R&D spend; outlets flagged that higher investment weighed on investor sentiment. Reuters: wider loss
• Negative Sentiment: Company commentary and perceived mixed guidance: although EPS guidance was strong, some press reported a lowered revenue outlook or cautious revenue commentary, which heightened investor concern about near-term growth visibility. Benzinga: lowered revenue guidance
• Negative Sentiment: Multiple analyst price‑target cuts: Several firms trimmed targets today (examples: Berenberg 390→320, Morgan Stanley 305→200, Citizens/JMP 355→290, BMO 315→210, Needham 310→180, Piper Sandler 260→185). Most retained constructive ratings (buy/overweight/outperform), but the cuts signal lower near‑term valuation support and add selling pressure. Berenberg cut Morgan Stanley cut
• Negative Sentiment: Market reaction: Even with upside to estimates, headlines emphasizing higher losses, a trimmed revenue outlook and the analyst downgrades prompted selling — causing the stock to decrease today. Barron’s: falls after earnings

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.