Zscaler Slides as Investors Reassess 2027 Growth Outlook and Sales Leadership Change

Zscaler (ZS) is down 7.8% today. Here is some analysis on what might have caused this price movement.

Analysis: The most likely driver is continued pressure from Zscaler’s fiscal 2027 outlook, which points to slower growth than many investors had hoped for even after the company posted strong recent results. Sentiment also appears to be weighed down by a recent sales leadership change and the company’s restructuring plan, both of which can raise execution concerns for a premium-valued cybersecurity stock.

Details:

Zscaler reaffirmed fiscal 2027 guidance in October, including annual recurring revenue growth of about 16.6% to 17.4% and revenue growth of about 16.6% to 17.5%, reinforcing the view that growth is moderating from prior levels.

The company’s Investor Day emphasized long-term AI and platform opportunities, but it did not introduce a near-term uplift to guidance, which may have disappointed traders looking for a stronger acceleration story.

In September, Zscaler said it would reduce its workforce by about 3% as it reallocates resources toward AI and growth initiatives, a move that can be read as strategic but also as a sign of tighter operating discipline.

Zscaler also appointed Ross Tackett as chief revenue officer effective October 1, with Mike Rich stepping down for personal reasons, and leadership turnover in a key go-to-market role can create short-term caution.

Sources:

Zscaler Investor Relations, SEC, Yahoo Finance

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 51 times in the past 6 months. Of those trades, 0 have been purchases and 51 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 8 sales selling 40,580 shares for an estimated $8,325,068.
ROBERT SCHLOSSMAN (Chief Legal Officer) has made 0 purchases and 4 sales selling 10,987 shares for an estimated $1,943,021.
KEVIN RUBIN (Chief Financial Officer) has made 0 purchases and 33 sales selling 9,682 shares for an estimated $1,758,252.
MICHAEL J. RICH (CRO and President of WW Sales) has made 0 purchases and 2 sales selling 8,292 shares for an estimated $1,320,850.
JAGTAR SINGH CHAUDHRY (CEO & Chairman) has made 0 purchases and 2 sales selling 5,730 shares for an estimated $913,623.
JAMES A BEER has made 0 purchases and 2 sales selling 354 shares for an estimated $56,199.

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 426 institutional investors add shares of $ZS stock to their portfolio, and 389 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

FMR LLC removed 1,839,487 shares (-84.0%) from their portfolio in Q2 2026, for an estimated $259,643,590
TIGER GLOBAL MANAGEMENT LLC removed 1,579,766 shares (-100.0%) from their portfolio in Q2 2026, for an estimated $222,983,970
VICTORY CAPITAL MANAGEMENT INC added 1,536,364 shares (+1108.1%) to their portfolio in Q2 2026, for an estimated $216,857,778
AMERICAN CENTURY COMPANIES INC removed 1,517,931 shares (-63.7%) from their portfolio in Q2 2026, for an estimated $214,255,960
JERICHO CAPITAL ASSET MANAGEMENT L.P. added 1,362,862 shares (+inf%) to their portfolio in Q2 2026, for an estimated $192,367,971
BLACKROCK, INC. added 1,322,067 shares (+15.4%) to their portfolio in Q2 2026, for an estimated $186,609,757
T. ROWE PRICE INVESTMENT MANAGEMENT, INC. removed 1,257,901 shares (-100.0%) from their portfolio in Q2 2026, for an estimated $177,552,726

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 Price Targets

Multiple analysts have issued price targets for $ZS recently. We have seen 27 analysts offer price targets for $ZS in the last 6 months, with a median target of $190.0.

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
Dan Ives from Wedbush set a target price of $220.0 on 06/10/2026
John Difucci from Guggenheim set a target price of $214.0 on 06/10/2026
Jonathan Ruykhaver from Cantor Fitzgerald set a target price of $225.0 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.