Zscaler falls 6.9% as post-earnings skepticism and price-target cuts weigh on sentiment

Zscaler (ZS) is down 6.9% today. Here is some analysis on what might have caused this price movement.

Analysis: The drop appears tied to continued post-earnings repositioning after Zscaler’s recent quarterly report, with investors focusing on forward indicators (such as billings/near-term growth cadence) rather than the headline beat. A cluster of analyst price-target reductions in late February and early March also likely reinforced multiple-compression pressure across high-growth cybersecurity names.

Details:

Zscaler recently posted fiscal Q2 results with revenue growth and an EPS beat, but the stock reaction in the days after earnings suggested investors were not fully satisfied with the forward setup.

Several sell-side firms cut price targets in late February, citing valuation/multiple contraction and a more cautious view of the near-term demand and growth trajectory even while maintaining constructive long-term ratings.

Additional target trims in early March extended the negative tone, keeping attention on guidance quality and the timing of growth re-acceleration rather than reported-quarter strength.

This could also reflect broader risk-off trading in higher-multiple software/cybersecurity stocks, which can amplify declines when sentiment is already fragile.

Sources:

Investing.com, Zacks, Fintool

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 24 times in the past 6 months. Of those trades, 0 have been purchases and 24 have been sales.

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

ROBERT SCHLOSSMAN (Chief Legal Officer) has made 0 purchases and 9 sales selling 17,902 shares for an estimated $4,793,892.
MICHAEL J. RICH (CRO and President of WW Sales) has made 0 purchases and 2 sales selling 7,247 shares for an estimated $1,439,157.
ADAM GELLER (Chief Product Officer) has made 0 purchases and 4 sales selling 7,259 shares for an estimated $1,406,640.
RAJ JUDGE (EVP, Corp. Strategy & Ventures) has made 0 purchases and 2 sales selling 5,926 shares for an estimated $1,183,160.
KEVIN RUBIN (Chief Financial Officer) has made 0 purchases and 2 sales selling 4,985 shares for an estimated $1,025,785.
JAGTAR SINGH CHAUDHRY (CEO & Chairman) has made 0 purchases and 2 sales selling 4,784 shares for an estimated $960,166.
JAMES A BEER has made 0 purchases and 2 sales selling 830 shares for an estimated $175,222.
ANDREW WILLIAM FRASER BROWN sold 5,000 shares for an estimated $0

To track insider transactions, check out Quiver Quantitative's insider trading dashboard.

$ZS Hedge Fund Activity

We have seen 424 institutional investors add shares of $ZS stock to their portfolio, and 553 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

UBS AM, A DISTINCT BUSINESS UNIT OF UBS ASSET MANAGEMENT AMERICAS LLC removed 5,068,675 shares (-75.2%) from their portfolio in Q4 2025, for an estimated $1,140,046,381
T. ROWE PRICE INVESTMENT MANAGEMENT, INC. removed 999,599 shares (-44.3%) from their portfolio in Q4 2025, for an estimated $224,829,807
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/ added 777,414 shares (+43.3%) to their portfolio in Q4 2025, for an estimated $174,855,956
UBS GROUP AG added 715,949 shares (+129.4%) to their portfolio in Q4 2025, for an estimated $161,031,249
GOLDMAN SACHS GROUP INC added 582,245 shares (+31.8%) to their portfolio in Q4 2025, for an estimated $130,958,545
1832 ASSET MANAGEMENT L.P. removed 515,116 shares (-99.2%) from their portfolio in Q4 2025, for an estimated $115,859,890

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

$ZS Analyst Ratings

Wall Street analysts have issued reports on $ZS in the last several months. We have seen 15 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
Rosenblatt issued a "Buy" rating on 11/26/2025
Stifel issued a "Buy" rating on 11/26/2025
Citizens issued a "Market Outperform" rating on 11/26/2025

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 29 analysts offer price targets for $ZS in the last 6 months, with a median target of $250.0.

Here are some recent targets:

Ittai Kidron from Oppenheimer set a target price of $250.0 on 03/10/2026
Richard Poland from Wells Fargo set a target price of $200.0 on 03/03/2026
Gabriela Borges from Goldman Sachs set a target price of $257.0 on 03/02/2026
Fatima Boolani from Citigroup set a target price of $195.0 on 03/02/2026
Gray Powell from BTIG set a target price of $209.0 on 02/27/2026
Steve Koenig from Macquarie set a target price of $210.0 on 02/27/2026
Matthew Hedberg from RBC Capital set a target price of $205.0 on 02/27/2026

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.