Zscaler’s (ZS) “Overweight” Rating Reiterated at Cantor Fitzgerald

Cantor Fitzgerald reaffirmed their overweight rating on shares of Zscaler (NASDAQ:ZS) in a report published on Friday,Benzinga reports. They currently have a $225.00 target price on the stock.

A number of other research firms have also weighed in on ZS. FBN Securities reissued an “outperform” rating and set a $175.00 price objective on shares of Zscaler in a research note on Wednesday, May 27th. B. Riley Financial reduced their price target on Zscaler from $225.00 to $215.00 and set a “buy” rating on the stock in a report on Wednesday, May 27th. TD Cowen upped their price objective on shares of Zscaler from $180.00 to $200.00 and gave the company a “buy” rating in a report on Monday, August 17th. Deutsche Bank Aktiengesellschaft reduced their target price on shares of Zscaler from $185.00 to $175.00 and set a “buy” rating on the stock in a research note on Wednesday, May 27th. Finally, Zacks Research upgraded shares of Zscaler from a “strong sell” rating to a “hold” rating in a report on Wednesday, May 27th. Thirty-four analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $215.90.

Zscaler Price Performance

ZS stock opened at $169.80 on Friday. The company has a market cap of $27.69 billion, a price-to-earnings ratio of -435.38, a PEG ratio of 99.94 and a beta of 0.95. The company has a current ratio of 1.70, a quick ratio of 1.70 and a debt-to-equity ratio of 0.65. Zscaler has a 12 month low of $114.63 and a 12 month high of $336.99. The firm has a 50-day moving average of $161.26 and a two-hundred day moving average of $150.34.

Zscaler (NASDAQ:ZS) last released its earnings results on Thursday, September 3rd. The company reported $1.19 earnings per share for the quarter, topping analysts’ consensus estimates of $1.09 by $0.10. The business 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 was up 24.9% on a year-over-year basis. During the same period last year, the company posted $0.89 EPS. 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 forecast that Zscaler will post 0.13 earnings per share for the current fiscal year.

Insider Transactions at Zscaler

In other news, CEO Jagtar Chaudhry sold 2,878 shares of the business’s stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $126.43, for a total transaction of $363,865.54. Following the completion of the sale, the chief executive officer owned 343,038 shares in the company, valued at approximately $43,370,294.34. The trade was a 0.83% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Kevin Rubin sold 3,000 shares of the business’s stock in a transaction on Thursday, June 25th. The shares were sold at an average price of $124.22, for a total transaction of $372,660.00. Following the completion of the sale, the chief financial officer directly owned 41,901 shares of the company’s stock, valued at approximately $5,204,942.22. This trade represents a 6.68% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 16,772 shares of company stock valued at $2,139,799 over the last three months. 17.20% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Zscaler

Large investors have recently modified their holdings of the company. Kentucky Retirement Systems Insurance Trust Fund boosted its holdings in shares of Zscaler by 1.4% in the third quarter. Kentucky Retirement Systems Insurance Trust Fund now owns 2,569 shares of the company’s stock valued at $770,000 after acquiring an additional 36 shares in the last quarter. Parallel Advisors LLC increased its stake in Zscaler by 10.9% in the 3rd quarter. Parallel Advisors LLC now owns 397 shares of the company’s stock valued at $119,000 after purchasing an additional 39 shares in the last quarter. Smartleaf Asset Management LLC raised its holdings in Zscaler by 7.5% during the second quarter. Smartleaf Asset Management LLC now owns 648 shares of the company’s stock worth $204,000 after purchasing an additional 45 shares during the last quarter. Larson Financial Group LLC boosted its position in Zscaler by 2.6% during the third quarter. Larson Financial Group LLC now owns 2,040 shares of the company’s stock worth $611,000 after purchasing an additional 52 shares in the last quarter. Finally, Crossmark Global Holdings Inc. boosted its position in Zscaler by 6.1% during the third quarter. Crossmark Global Holdings Inc. now owns 976 shares of the company’s stock worth $292,000 after purchasing an additional 56 shares in the last quarter. 46.45% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Strong fiscal fourth-quarter results: Zscaler reported adjusted EPS of $1.19 versus the $1.09 consensus and revenue of $898.2 million versus $877.0 million expected. Revenue and annual recurring revenue (ARR) each increased 25% year over year, while non-GAAP operating margin reached a record 24%. Zscaler Announces Strong Fourth Quarter and Fiscal 2026 Financial Results
• Positive Sentiment: AI and platform demand remain catalysts: Management highlighted growing demand for Security for AI, Agentic SecOps, non-seat-based products and large enterprise deals. Analysts including Baird, Stephens, Needham, Canaccord and Cantor raised price targets, generally citing the earnings beat and potential for conservative guidance to be exceeded. Zscaler Analysts Boost Their Forecasts After Better-Than-Expected Q4 Earnings
• Neutral Sentiment: Analyst opinion is divided: Some analysts called the fiscal 2027 outlook overly cautious and maintained bullish ratings, while others noted that the forecast reflects competitive pressure, the Red Canary acquisition and a more measured growth profile.
• Negative Sentiment: Fiscal 2027 growth is expected to decelerate: Zscaler guided for revenue growth of 16.6% to 17.5% and ARR growth of 16.6% to 17.4%, well below the 25% growth delivered in fiscal 2026. The slower outlook overshadowed the quarterly beat and renewed valuation concerns for high-growth cybersecurity stocks. Zscaler Fiscal 2027 Growth Forecast
• Negative Sentiment: Free cash flow weakened sharply: Fourth-quarter free cash flow fell 65% year over year to $60.8 million, versus approximately $66.9 million expected, as capital expenditures and internal-use software spending increased. Zscaler also announced a restructuring affecting about 3% of its workforce, adding execution concerns. Zscaler Shares Fall Despite Earnings Beat

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.