Zscaler

ZS · NASDAQ

$214.51+$1.98 (+0.93%)TodayMarket closed · Oct 20, 4:05 PM ET

Prev close $212.53

ZS analyst rating

BuyConsensus of 41 analysts over the last 12 months. 88% rate it a buy.

Strong buy0
Buy36
Hold5
Underperform0
Sell0

12-month price target · 49 analysts

Average $216.49 (+0.9% upside)

Low: $156.55
Now: $214.51
High: $317.10

Upgrades and downgrades

The latest rating actions, newest first

ZS analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
Citigroup	Oct 15, 2026	Maintains	Buy	$245.00 → $260.00	71%
Citizens	Oct 9, 2026	Maintains	Market Outperform	$210.00 → $265.00	61%
Amerx	Oct 8, 2026	Initiates	Buy	$305.00	31%
Macquarie	Oct 7, 2026	Maintains	Outperform	$200.00 → $250.00	53%
UBS	Oct 7, 2026	Maintains	Buy	$225.00 → $250.00	60%
Citigroup	Oct 7, 2026	Maintains	Buy	$205.00 → $245.00	71%
Jefferies	Oct 7, 2026	Maintains	Buy	$220.00 → $250.00	74%
Canaccord Genuity	Oct 7, 2026	Maintains	Buy	$210.00 → $250.00	59%
BNP Paribas	Oct 7, 2026	Maintains	Outperform	$230.00 → $250.00	52%
Truist Securities	Oct 7, 2026	Maintains	Buy	$200.00 → $250.00	95%

The case for and against

Updated Oct 14, 2026

Bull case

Zscaler is supported by a durable core Zero Trust SASE business that reached $2.8B of FY26 ARR and still grew at an 18% FY23–FY26 CAGR, while the broader company produced 25% revenue growth and a 23% FCF margin in FY26 at a $3B+ ARR scale. Its outlook is strengthened by multiple expansion vectors, including Zero Trust SASE for Branch and Cloud at about $250M of FY26 ARR, Data Security at $410M, and Security for AI at roughly $70M with >1,000% y/y growth and strong bookings and pipeline momentum. The company also has substantial embedded runway, with more than $19B of addressable spend inside the installed base versus $3.8B of FY26 ending ARR, plus AI-driven demand, expanding enterprise urgency, and a management team that reaffirmed continuity in GTM execution.

Bear case

Zscaler is vulnerable to intensifying competition from major public cloud providers and new software entrants, which could offer similar or better functionality at materially lower prices and compress margins. Its growth thesis also depends on customers abandoning physical security appliances, yet that transition may proceed more slowly or incompletely, while a weaker global economy or slower SaaS/cloud adoption could extend sales cycles and reduce IT spending. Operational risk is elevated because Zscaler depends on third-party data center relationships it does not control, and staffing challenges in technical and sales roles could further limit product development and go-to-market execution.

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