Zscaler (NASDAQ:ZS) Shares Up 6.7% – Should You Buy?

Zscaler, Inc. (NASDAQ:ZS)’s share price shot up 6.7% during trading on Monday . The company traded as high as $169.41 and last traded at $171.8990. 593,392 shares changed hands during trading, a decline of 78% from the average session volume of 2,753,958 shares. The stock had previously closed at $161.05.

Trending Headlines about Zscaler

Here are the key news stories impacting Zscaler this week:

• Positive Sentiment: Zscaler launched Project AI-Guardian, a new initiative with major global system integrators including Cognizant, EY, HCL, Infosys, TCS, and Wipro. The program is aimed at helping enterprises secure AI systems using Zscaler’s Zero Trust and AI security tools, which could expand demand for its platform. Article Title
• Positive Sentiment: Analysts remain broadly constructive, with recent reports highlighting Zscaler’s strong Q2 results, raised fiscal 2026 guidance, and growing AI-driven demand. Several firms reiterated buy/outperform-style ratings even after modest price-target adjustments. Article Title
• Positive Sentiment: Recent commentary suggests Zscaler’s rally may still have room to run, supported by momentum traders positioning ahead of upcoming company developments and a stronger risk appetite for cybersecurity names. Article Title

Analyst Upgrades and Downgrades

ZS has been the topic of a number of analyst reports. Barclays set a $220.00 price target on shares of Zscaler in a research report on Thursday, February 19th. Royal Bank Of Canada lowered their target price on shares of Zscaler from $250.00 to $205.00 and set an “outperform” rating for the company in a research note on Friday, February 27th. JPMorgan Chase & Co. lowered their target price on shares of Zscaler from $354.00 to $267.00 and set an “overweight” rating for the company in a research note on Friday, February 20th. Morgan Stanley cut shares of Zscaler from an “overweight” rating to a “neutral” rating in a research report on Monday. Finally, Citizens Jmp decreased their price target on shares of Zscaler from $290.00 to $210.00 and set a “market outperform” rating for the company in a report on Friday, May 1st. One analyst has rated the stock with a Strong Buy rating, thirty have assigned a Buy rating, eight have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $261.26.

Zscaler Stock Performance

The company has a quick ratio of 1.90, a current ratio of 1.90 and a debt-to-equity ratio of 0.78. The stock’s fifty day moving average is $143.42 and its two-hundred day moving average is $197.91. The firm has a market capitalization of $28.18 billion, a price-to-earnings ratio of -417.26 and a beta of 0.96.

Zscaler (NASDAQ:ZS) last posted its quarterly earnings results on Thursday, February 26th. The company reported $1.01 earnings per share for the quarter, beating analysts’ consensus estimates of $0.89 by $0.12. Zscaler had a positive return on equity of 0.06% and a negative net margin of 2.25%.The business had revenue of $815.75 million for the quarter, compared to analysts’ expectations of $798.92 million. During the same quarter in the prior year, the business earned $0.78 EPS. The firm’s revenue for the quarter 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, analysts predict that Zscaler, Inc. will post -0.03 earnings per share for the current year.

Insider Activity

In related news, EVP Raj Judge sold 2,488 shares of the business’s stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $156.59, for a total value of $389,595.92. Following the completion of the sale, the executive vice president directly owned 67,906 shares in the company, valued at $10,633,400.54. The trade was a 3.53% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CFO Kevin Rubin sold 1,682 shares of the company’s stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $156.59, for a total value of $263,384.38. Following the completion of the transaction, the chief financial officer directly owned 46,479 shares in the company, valued at approximately $7,278,146.61. This represents a 3.49% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 12,130 shares of company stock valued at $1,892,487. Company insiders own 17.20% of the company’s stock.

Hedge Funds Weigh In On Zscaler

Several institutional investors and hedge funds have recently modified their holdings of ZS. Vanguard Group Inc. boosted its holdings in Zscaler by 0.5% in the 4th quarter. Vanguard Group Inc. now owns 11,423,424 shares of the company’s stock valued at $2,569,357,000 after purchasing an additional 55,521 shares during the period. Groupama Asset Managment grew its position 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 worth $1,423,385,000 after purchasing an additional 4,743,787 shares in the last quarter. First Trust Advisors LP increased its holdings in shares of Zscaler by 36.2% during the first quarter. First Trust Advisors LP now owns 3,518,678 shares of the company’s stock worth $493,635,000 after purchasing an additional 935,781 shares during the period. Price T Rowe Associates Inc. MD increased its holdings in shares of Zscaler by 43.3% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,572,358 shares of the company’s stock worth $578,576,000 after purchasing an additional 777,414 shares during the period. Finally, State Street Corp raised its position in shares of Zscaler by 3.4% in the fourth quarter. State Street Corp now owns 2,337,604 shares of the company’s stock valued at $525,774,000 after buying an additional 77,800 shares in the last quarter. 46.45% of the stock is currently owned by institutional investors and hedge funds.

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.