Analysts Lift Zscaler Price Targets to $360-$366, Consensus at $322.66
Zscaler garnered a 'Moderate Buy' consensus from 43 brokerages, with an average 12-month price target of $322.66; Baird lifted its target to $360 and RBC to $366 while Berenberg cut to $390. The company reported Q3 revenue of $788.1 million (up 25.5% YoY) and set FY26 EPS guidance at $3.78–3.82.
1. Consensus Rating Reflects Broad Bullish Sentiment
MarketBeat Ratings reports that forty-three brokerages covering Zscaler have assigned an average rating of “Moderate Buy.” Of these, thirty-three analysts issued buy recommendations, eight issued holds and one assigned a sell rating; one analyst went further with a strong-buy verdict. The average 12-month price target stands at 322.66, reflecting confidence in continued subscription growth and margin expansion over the coming year.
2. Analysts Lift Targets on Robust Growth Outlook
Since mid-November, five major firms have adjusted their views. Robert W. Baird raised its target from 350 to 360 and maintained an outperform rating. BTIG Research reiterated its buy stance with a 365 objective, while Citizens JMP upheld a market-outperform call at 355. Berenberg Bank trimmed its target from 400 to 390 but held onto a buy recommendation, and Royal Bank of Canada raised its objective from 350 to 366 alongside an outperform rating. These moves underscore expectations for accelerating revenue, particularly within the company’s cloud-native zero-trust platform.
3. Q3 Results Exceed Expectations, Guidance Pointing Higher
In its latest quarter, Zscaler delivered $788.1 million in revenue, topping consensus estimates by 1.9% and representing 25.5% year-over-year growth. Non-GAAP EPS of $0.96 beat forecasts by $0.11, while the firm narrowed its net loss margin to 1.45% and reported stable operating leverage. Management set full-year EPS guidance at 3.78–3.82 and Q2 EPS at 0.89–0.90, implying continued subscription-based revenue momentum and ongoing investments in global data centers.
4. Insider and Institutional Activity Signals Alignment
Executive Vice President Raj Judge sold 3,438 shares at an average of 230.82, reducing his position by 4.66%, and Adam Geller sold 2,060 shares at the same price, a 3.80% reduction; total insider sales over the past 90 days exceeded 22,500 shares. Despite these disposals, insiders retain 17.2% ownership. On the institutional front, Q3 filings show small incremental buys by prominent managers: Bessemer Group raised its stake by 3.2%, Cox Capital by 0.6%, Brookstone by 3.7%, Wedbush by 0.7% and Goldstream by 0.3%, leaving nearly half of shares in institutional hands.