Zscaler Wins Wall Street Praise After Robust Q4 and FY26 Outlook

Sep 3 - Zscaler ZS shares gained attention on Wednesday after the cybersecurity company reported stronger-than-expected fourth-quarter results and issued guidance that topped Wall Street expectations. The upbeat report also drew a wave of bullish commentary from analysts.

BTIG reiterated its Buy rating and kept a $365 price target, pointing to solid execution and growing traction in firewall replacement activity. Analysts noted encouraging customer adoption of Zero Trust Everywhere, highlighting momentum in the ongoing firewall refresh cycle.

Jefferies also stayed positive, maintaining a Buy rating and a $350 target. Analysts credited improved go-to-market execution, Z-Flex pricing, and a broader product portfolio for the quarter's strength. They expect those drivers to support Zscaler's 19% year-over-year ARR guidance for fiscal 2026.

Morgan Stanley, which upgraded Zscaler earlier this week, reaffirmed its Overweight rating and $320 target. Analysts were encouraged by stronger platform adoption, with over 350 Zero Trust Everywhere deals signed, well ahead of the company's FY26 pace.

Wedbush echoed the optimism, keeping an Outperform rating and a $330 target.