Zscaler Beats Q4 Estimates, Analysts Mixed On Price Targets Despite Growth

Zscaler Inc (NASDAQ:ZS) shares were down on Wednesday morning, even after the company reported upbeat fiscal fourth-quarter results.

Track ZS stock action here.

Here are some analyst takeaways.

Scotiabank analyst Patrick Colville reaffirmed a Sector Outperform rating, while reducing the price target from $360 to $334.

KeyBanc Capital Markets analyst Eric Heath maintained an Overweight rating, while lifting the price target from $345 to $350.

Rosenblatt Securities analyst Catharine Trebnick reiterated a Buy rating, while raising the price target from $315 to $330.

Wedbush analyst Daniel Ives maintained an Outperform rating and price target of $330.

Needham analyst Mike Cikos reiterated a Buy rating and price target of $350.

Cantor Fitzgerald analyst Jonathan Ruykhaver reaffirmed an Overweight rating and price target of $340.

Check out other analyst stock ratings.

Scotiabank: Zscaler delivered a "clean" beat on both its top and bottom lines, Colville said in a note. The company's annual recurring revenues (ARR) rose 22% in the quarter and the initial guidance for fiscal 2026 shows 19% growth, he added.

Management guided to operating margin expansion of around 65 basis points (bps) for fiscal 2026, which "leaves some room for upside," the analyst stated.

The organic new ARR guidance for the year of around 7% seems reasonable, "even if we are left scratching our heads as to why Red Canary ARR is so much lower under Zscaler ownership than the amount the ...