Zscaler Climbs as Investors Reassess Growth Outlook and AI Security Push

Zscaler (ZS) is up 6.0% today. Here is some analysis on what might have caused this price movement.

Analysis: The move appears tied to a continued rebound in sentiment after investors digested Zscaler’s recent quarterly results, ongoing AI-security product expansion, and supportive analyst commentary. While there does not appear to be one single fresh catalyst on June 26, the rally suggests buyers are warming back up to the company’s growth story after a sharp post-earnings selloff earlier in June.

Details:

Zscaler’s fiscal third-quarter release showed revenue rising about 25% year over year to roughly $850 million, with annual recurring revenue also up about 25%, giving investors evidence that core demand remains healthy.

The company used its June investor events to highlight new AI-focused security capabilities, including additions to its AI Protect offering and broader zero-trust tools aimed at securing agentic AI workloads.

A June 9 announcement expanded Project AI-Guardian with major technology and infrastructure partners, which may have reinforced the view that Zscaler is building a larger ecosystem around enterprise AI security.

Recent bullish analyst actions, including a Buy reiteration and an earlier upgrade in June, likely helped support the idea that the stock had become more attractive after its earlier reset.

Sources:

Zscaler Investor Relations, SEC, MarketBeat, Fintel

Disclaimer: This price movement analysis was generated with the help of AI. Please double-check the information provided for mistakes.

$ZS Insider Trading Activity

$ZS insiders have traded $ZS stock on the open market 17 times in the past 6 months. Of those trades, 0 have been purchases and 17 have been sales.

Here’s a breakdown of recent trading of $ZS stock by insiders over the last 6 months:

ADAM GELLER (Chief Product Officer) has made 0 purchases and 4 sales selling 8,336 shares for an estimated $1,144,670.
MICHAEL J. RICH (CRO and President of WW Sales) has made 0 purchases and 2 sales selling 7,331 shares for an estimated $1,021,779.
ROBERT SCHLOSSMAN (Chief Legal Officer) has made 0 purchases and 2 sales selling 5,409 shares for an estimated $752,117.
JAGTAR SINGH CHAUDHRY (CEO & Chairman) has made 0 purchases and 2 sales selling 4,819 shares for an estimated $667,811.
KEVIN RUBIN (Chief Financial Officer) has made 0 purchases and 2 sales selling 3,368 shares for an estimated $476,549.
RAJ JUDGE (EVP, Corp. Strategy & Ventures) sold 2,488 shares for an estimated $389,603
JAMES A BEER has made 0 purchases and 3 sales selling 1,007 shares for an estimated $197,436.
ANDREW WILLIAM FRASER BROWN sold 5,000 shares for an estimated $0

To track insider transactions, check out Quiver Quantitative's insider trading dashboard. You can access data on insider stock transactions through the Quiver Quantitative API insider transaction endpoint.

$ZS Hedge Fund Activity

We have seen 377 institutional investors add shares of $ZS stock to their portfolio, and 610 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

FMR LLC removed 2,339,184 shares (-51.6%) from their portfolio in Q1 2026, for an estimated $328,164,123
FEDERATED HERMES, INC. removed 1,074,482 shares (-89.2%) from their portfolio in Q1 2026, for an estimated $150,739,079
T. ROWE PRICE INVESTMENT MANAGEMENT, INC. removed 999,599 shares (-44.3%) from their portfolio in Q4 2025, for an estimated $224,829,807
TWO SIGMA INVESTMENTS, LP added 974,678 shares (+483.9%) to their portfolio in Q1 2026, for an estimated $136,737,576
FIRST TRUST ADVISORS LP added 935,781 shares (+36.2%) to their portfolio in Q1 2026, for an estimated $131,280,716
D. E. SHAW & CO., INC. removed 872,732 shares (-70.6%) from their portfolio in Q4 2025, for an estimated $196,294,881
PRICE T ROWE ASSOCIATES INC /MD/ removed 823,148 shares (-32.0%) from their portfolio in Q1 2026, for an estimated $115,479,432

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard. You can access data on hedge funds moves and 13F filings through the Quiver Quantitative API 13F endpoint.

$ZS Analyst Ratings

Wall Street analysts have issued reports on $ZS in the last several months. We have seen 4 firms issue buy ratings on the stock, and 0 firms issue sell ratings.

Here are some recent analyst ratings:

Macquarie issued a "Outperform" rating on 02/27/2026
Citigroup issued a "Buy" rating on 01/13/2026
Keybanc issued a "Overweight" rating on 01/12/2026
RBC Capital issued a "Outperform" rating on 01/05/2026

To track analyst ratings and price targets for $ZS, check out Quiver Quantitative's $ZS forecast page.

$ZS Price Targets

Multiple analysts have issued price targets for $ZS recently. We have seen 33 analysts offer price targets for $ZS in the last 6 months, with a median target of $200.0.

Here are some recent targets:

Jackson Ader from Keybanc set a target price of $176.0 on 06/25/2026
Todd Weller from Stephens & Co. set a target price of $200.0 on 06/12/2026
Kingsley Crane from Canaccord Genuity set a target price of $210.0 on 06/11/2026
Mike Cikos from Needham set a target price of $180.0 on 06/10/2026
Steve Koenig from Macquarie set a target price of $172.0 on 06/10/2026
Matthew Hedberg from RBC Capital set a target price of $200.0 on 06/10/2026
Catharine Trebnick from Rosenblatt set a target price of $200.0 on 06/10/2026

This article is not financial advice. See Quiver Quantitative's disclaimers for more information. Note that there may be inaccuracies due to mistakes in ticker-mapping, and other anomalies.