Across the recent three months, 23 analysts have shared their insights on Zscaler (NASDAQ:ZS), expressing a variety of opinions spanning from bullish to bearish.
The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 5 | 16 | 2 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 5 | 13 | 1 | 0 | 0 |
| 2M Ago | 0 | 2 | 1 | 0 | 0 |
| 3M Ago | 0 | 0 | 0 | 0 | 0 |
In the assessment of 12-month price targets, analysts unveil insights for Zscaler, presenting an average target of $330.43, a high estimate of $355.00, and a low estimate of $275.00. This current average has increased by 2.7% from the previous average price target of $321.73.
Understanding Analyst Ratings: A Comprehensive Breakdown
The standing of Zscaler among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Matthew Hedberg | RBC Capital | Raises | Outperform | $350.00 | $335.00 |
| Kingsley Crane | Canaccord Genuity | Raises | Buy | $340.00 | $320.00 |
| Brian Essex | JP Morgan | Raises | Overweight | $351.00 | $348.00 |
| Daniel Ives | Wedbush | Maintains | Outperform | $330.00 | $330.00 |
| Saket Kalia | Barclays | Raises | Overweight | $320.00 | $300.00 |
| Matthew Hedberg | RBC Capital | Raises | Outperform | $335.00 | $315.00 |
| Keith Bachman | BMO Capital | Raises | Outperform | $315.00 | $295.00 |
| Roger Boyd | UBS | Lowers | Buy | $350.00 | $365.00 |
| Jonathan Ruykhaver | Cantor Fitzgerald | Maintains | Overweight | $340.00 | $340.00 |
| Peter Levine | Evercore ISI Group | Raises | Outperform | $320.00 | $290.00 |
| Trevor Walsh | JMP Securities | Maintains | Market Outperform | $355.00 | $355.00 |
| Shyam Patil | Susquehanna | Raises | Positive | $340.00 | $320.00 |
| Patrick Colville | Scotiabank | Lowers | Sector Outperform | $334.00 | $360.00 |
| Rob Owens | Piper Sandler | Raises | Neutral | $280.00 | $260.00 |
| Adam Borg | Stifel | Raises | Buy | $330.00 | $295.00 |
| Eric Heath | Keybanc | Raises | Overweight | $350.00 | $345.00 |
| Shrenik Kothari | Baird | Raises | Outperform | $345.00 | $330.00 |
| Catharine Trebnick | Rosenblatt | Raises | Buy | $330.00 | $315.00 |
| Mike Cikos | Needham | Maintains | Buy | $350.00 | $350.00 |
| Hamza Fodderwala | Morgan Stanley | Raises | Overweight | $320.00 | $280.00 |
| Jonathan Ruykhaver | Cantor Fitzgerald | Maintains | Overweight | $340.00 | $340.00 |
| Erik Suppiger | B. Riley Securities | Announces | Neutral | $275.00 | - |
| Saket Kalia | Barclays | Raises | Overweight | $300.00 | $290.00 |
Key Insights:
- Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Zscaler. This insight gives a snapshot of analysts' perspectives on the current state of the company.
- Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Zscaler compared to the broader market.
- Price Targets: Understanding forecasts, analysts offer estimates for Zscaler's future value. Examining the current and prior targets provides insight into analysts' changing expectations.
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Zscaler's market standing. Stay informed and make well-considered decisions with our Ratings Table.
Stay up to date on Zscaler analyst ratings.
About Zscaler
Zscaler is a software-as-a-service, or SaaS, firm focusing on providing cloud-native cybersecurity solutions to primarily enterprise customers. Zscaler's offerings can be broadly partitioned into Zscaler Internet Access, which provides secure access to external applications, and Zscaler Private Access, which provides secure access to internal applications. The firm is headquartered in San Jose, California, and went public in 2018.
Zscaler's Financial Performance
Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.
Revenue Growth: Zscaler's revenue growth over a period of 3M has been noteworthy. As of 31 July, 2025, the company achieved a revenue growth rate of approximately 21.31%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.
Net Margin: Zscaler's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -2.44%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Zscaler's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -0.98%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): Zscaler's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -0.3%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: Zscaler's debt-to-equity ratio stands notably higher than the industry average, reaching 1.0. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
How Are Analyst Ratings Determined?
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
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