Zscaler (NASDAQ:ZS) Price Target Cut to $275.00 by Analysts at Canaccord Genuity Group

27 Feb 2026, 19:59 by Danessa Lincoln · The Markets Daily

Zscaler (NASDAQ:ZS – Get Free Report) had its price objective reduced by investment analysts at Canaccord Genuity Group from $340.00 to $275.00 in a research note issued to investors on Friday,Benzinga reports. The firm currently has a “buy” rating on the stock. Canaccord Genuity Group’s price target suggests a potential upside of 89.77% from the stock’s previous close.

Several other brokerages have also recently issued reports on ZS. HC Wainwright restated a “buy” rating on shares of Zscaler in a report on Wednesday, November 26th. Cantor Fitzgerald reduced their price objective on Zscaler from $365.00 to $300.00 and set an “overweight” rating for the company in a research report on Tuesday. Loop Capital set a $320.00 target price on Zscaler in a research report on Thursday, December 11th. Oppenheimer cut their price target on Zscaler from $345.00 to $280.00 and set an “outperform” rating for the company in a research note on Friday. Finally, Capital One Financial set a $320.00 price objective on shares of Zscaler and gave the stock an “overweight” rating in a research note on Wednesday, November 26th. One analyst has rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $274.37.

View Our Latest Report on ZS

Zscaler Stock Down 13.4%

Shares of Zscaler stock traded down $22.45 on Friday, reaching $144.91. The company’s stock had a trading volume of 8,446,410 shares, compared to its average volume of 2,640,223. Zscaler has a 52 week low of $140.56 and a 52 week high of $336.99. The firm’s fifty day simple moving average is $200.63 and its two-hundred day simple moving average is $256.06. The company has a quick ratio of 1.82, a current ratio of 1.82 and a debt-to-equity ratio of 0.86. The company has a market capitalization of $23.11 billion, a price-to-earnings ratio of -557.05, a P/E/G ratio of 317.40 and a beta of 1.02.

Zscaler (NASDAQ:ZS – Get Free Report) last released 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 company had revenue of $815.75 million for the quarter, compared to analysts’ expectations of $798.92 million. During the same period last year, the firm posted $0.78 earnings per share. Zscaler’s revenue was up 25.9% compared to the same quarter last year. Zscaler has set its Q3 2026 guidance at 1.000-1.010 EPS and its FY 2026 guidance at 3.990-4.020 EPS. Equities analysts anticipate that Zscaler will post -0.1 earnings per share for the current year.

Insider Activity

In related news, CFO Kevin Rubin sold 3,303 shares of the firm’s stock in a transaction on Tuesday, December 16th. The shares were sold at an average price of $230.82, for a total transaction of $762,398.46. Following the completion of the transaction, the chief financial officer directly owned 48,161 shares of the company’s stock, valued at approximately $11,116,522.02. This trade represents a 6.42% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Jagtar Singh Chaudhry sold 2,843 shares of the business’s stock in a transaction on Tuesday, December 16th. The stock was sold at an average price of $230.82, for a total transaction of $656,221.26. Following the completion of the sale, the chief executive officer owned 347,857 shares in the company, valued at approximately $80,292,352.74. The trade was a 0.81% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 19,350 shares of company stock valued at $4,471,509 in the last quarter. Company insiders own 17.20% of the company’s stock.

Institutional Trading of Zscaler

Large investors have recently added to or reduced their stakes in the company. Virtu Financial LLC bought a new stake in Zscaler in the fourth quarter worth $2,305,000. Sunbelt Securities Inc. increased its holdings in shares of Zscaler by 92.9% in the 4th quarter. Sunbelt Securities Inc. now owns 3,755 shares of the company’s stock worth $845,000 after buying an additional 1,808 shares during the last quarter. Kovitz Investment Group Partners LLC lifted its holdings in shares of Zscaler by 618.0% in the 4th quarter. Kovitz Investment Group Partners LLC now owns 6,785 shares of the company’s stock valued at $1,526,000 after acquiring an additional 5,840 shares during the last quarter. Mcguire Capital Advisors Inc. purchased a new position in Zscaler in the fourth quarter worth about $32,000. Finally, Invesco Ltd. increased its stake in Zscaler by 13.8% during the fourth quarter. Invesco Ltd. now owns 1,469,657 shares of the company’s stock worth $330,555,000 after acquiring an additional 178,692 shares during the last quarter. 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 estimates: Zscaler reported $1.01 EPS vs. $0.89 expected, revenue ~$815.8M (above consensus) and ARR growth of ~25%; the company raised ARR guidance for fiscal 2026. Zscaler Q2 results press release
Positive Sentiment: AI strategy and product momentum: management highlighted agentic AI ambitions (“50–100 AI agents” per employee) on CNBC and the company opened an AI & Cyber Threat Research Center in India with Bharti Airtel — initiatives that could expand monetization beyond seat-based SaaS. Zscaler CEO CNBC interview AI Cyber Center with Airtel
Neutral Sentiment: Earnings materials and call transcripts are available for investors wanting detail (revenue/ARR growth, cash-flow improvement). Useful for modeling longer-term margins vs. near-term spending. Earnings call transcript
Negative Sentiment: Wider net loss and guidance concerns: Zscaler reported a larger GAAP loss driven by higher sales/marketing and R&D spend; some outlets report the company trimmed or adjusted its fiscal revenue outlook, which pressured sentiment and triggered selling. Reuters: wider loss, higher spending
Negative Sentiment: Broad analyst price-target cuts and mixed ratings today — multiple firms trimmed targets (examples: Morgan Stanley, Berenberg, Oppenheimer, Mizuho, BMO, Needham, Piper Sandler, Citizens Jmp) even when many left buy/outperform stances. The wave of lower targets amplified downside pressure. MarketScreener: Berenberg cut Benzinga coverage of analyst moves
Negative Sentiment: Short-term investor reaction: Despite operational beats, the combination of increased discretionary spending, a larger GAAP loss, and clustered PT cuts produced a classic “sell the news” reaction in software stocks this week. Barron’s: stock reaction

Zscaler Company Profile

(Get Free Report)

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.