Zscaler slides as fresh price-target cuts add to post-earnings caution

Zscaler, Inc. (ZS) is down 3.1% today. Here is some analysis on what might have caused this price movement.

Analysis: The drop appears tied to another wave of analyst price-target reductions, reinforcing concerns that expectations for growth and ARR acceleration are being reset lower after the company’s recent fiscal Q2 report. Even with strong headline results and raised full-year targets, investors may be focusing on the quality of net-new ARR growth (especially when adjusting for acquisition impacts) and valuation sensitivity in a risk-off tape.

Details:

An Oppenheimer analyst kept an Outperform rating but lowered the firm’s price target on Zscaler from $280 to $250 on March 10, 2026, adding to the negative tone around the stock.

Zscaler’s fiscal Q2 2026 results (reported February 26, 2026) showed revenue up 26% year over year to $815.8 million and ARR up 25% to $3.359 billion.

In the same release, Zscaler disclosed that ARR growth was 21% excluding the contribution from the Red Canary acquisition, and net new ARR growth was 7% excluding Red Canary ARR—metrics that can weigh on sentiment if investors wanted faster organic acceleration.

This could also be exacerbated by investors looking for incremental positives from management’s March 10, 2026 investor-conference appearances, with limited new disclosures during conference weeks sometimes leading to profit-taking.

Sources:

GuruFocus, GlobeNewswire, Investing.com

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 25 times in the past 6 months. Of those trades, 0 have been purchases and 25 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 7 sales selling 25,337 shares for an estimated $6,968,864.
ROBERT SCHLOSSMAN (Chief Legal Officer) has made 0 purchases and 9 sales selling 19,471 shares for an estimated $5,515,151.
MICHAEL J. RICH (CRO and President of WW Sales) has made 0 purchases and 2 sales selling 15,818 shares for an estimated $4,235,574.
RAJ JUDGE (EVP, Corp. Strategy & Ventures) has made 0 purchases and 2 sales selling 7,962 shares for an estimated $2,063,436.
JAGTAR SINGH CHAUDHRY (CEO & Chairman) has made 0 purchases and 2 sales selling 5,708 shares for an estimated $1,460,417.
KEVIN RUBIN (Chief Financial Officer) sold 3,303 shares for an estimated $762,396
JAMES A BEER sold 653 shares for an estimated $148,048
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 551 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
Needham issued a "Buy" rating on 11/26/2025
Citizens issued a "Market Outperform" rating on 11/26/2025
Stifel issued a "Buy" 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
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
Peter Levine from Evercore ISI Group set a target price of $225.0 on 02/27/2026
Trevor Walsh from Citizens set a target price of $290.0 on 02/27/2026
Mike Cikos from Needham set a target price of $180.0 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.