Shares of Zscaler Inc (NASDAQ:ZS) tanked in early trading on Wednesday, even after the company reported upbeat fiscal first-quarter earnings.
Here are some key analyst takeaways:
Needham analyst Mike Cikos maintained a Buy rating, while reducing the price target from $350 to $310.
RBC Capital Markets analyst Matthew Hedberg reiterated an Outperform rating and price target of $366.
BTIG analyst Gray Powell reaffirmed a Buy rating and price target of $365.
Rosenblatt Securities analyst Catharine Trebnick maintained a Buy rating and price target of $365.
Guggenheim Securities analyst John DiFucci reiterated a Neutral rating on the stock.
Check out other analyst stock ratings.
Needham: Zscaler’s ARR (annual recurring revenue) grew 26% year-on-year to $3.204 billion, exceeding consensus by $22 million. Cikos says management raised the fiscal 2026 guidance by only $21 million at the midpoint.
This is “underwhelming,” especially considering the 47.8% growth in Net-New ARR in the first half of the fiscal year, the analyst stated. “We believe this was further exacerbated by management failing to quantify ARR contribution from the Red Canary acquisition,” he added.
RBC Capital Markets: Zscaler reported strong …