Zscaler jumps 7% as investors lean into prior raised ARR outlook and fresh federal-security wins

Zscaler, Inc. (ZS) is up 7.0% today. Here is some analysis on what might have caused this price movement.

Analysis: The move appears tied to investors continuing to re-price Zscaler after its most recent quarterly update raised its fiscal 2026 ARR outlook, alongside ongoing momentum in cybersecurity/mega-cap tech risk appetite. A recent U.S. defense-related authorization and public-sector positioning may also be reinforcing confidence in longer-term demand.

Details:

Zscaler’s latest reported quarter highlighted strong fiscal Q2 2026 results and an increased fiscal 2026 ARR growth outlook (24%), which can act as an anchor for bullish re-rating on up days.

The company disclosed updated forward guidance metrics for the next quarter and full year in its earnings materials, which can drive follow-through buying beyond the immediate earnings session.

Zscaler announced that Zscaler Internet Access (ZIA) achieved a Department of War Impact Level 5 (IL5) authorization in March 2026, expanding its ability to serve higher-sensitivity workloads in federal environments.

Broader market strength on May 1, 2026 likely supported high-multiple software names, amplifying gains for cybersecurity leaders.

Sources:

Zscaler Investor Relations, Zscaler, Zacks, Trefis

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 18 times in the past 6 months. Of those trades, 0 have been purchases and 18 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 3 sales selling 7,696 shares for an estimated $1,613,040.
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. You can access data on insider stock transactions through the Quiver Quantitative API.

$ZS Hedge Fund Activity

We have seen 405 institutional investors add shares of $ZS stock to their portfolio, and 494 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
PICTET ASSET MANAGEMENT HOLDING SA added 661,413 shares (+52.5%) to their portfolio in Q1 2026, for an estimated $92,789,629
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. You can access data on hedge funds moves and 13F filings through the Quiver Quantitative API.

$ZS Analyst Ratings

Wall Street analysts have issued reports on $ZS in the last several months. We have seen 14 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
Stifel issued a "Buy" rating on 11/26/2025
JP Morgan issued a "Overweight" rating on 11/26/2025
Baird issued a "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 30 analysts offer price targets for $ZS in the last 6 months, with a median target of $250.0.

Here are some recent targets:

Rustam Kanga from Citizens set a target price of $210.0 on 05/01/2026
Hamza Fodderwala from Morgan Stanley set a target price of $155.0 on 04/22/2026
Eric Heath from Keybanc set a target price of $160.0 on 04/15/2026
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
Fatima Boolani from Citigroup set a target price of $195.0 on 03/02/2026
Gabriela Borges from Goldman Sachs set a target price of $257.0 on 03/02/2026

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.