RBC Capital reduced Zscaler price target to $205 from $250
Zscaler exceeded Q2 expectations with $1.01 EPS and $815.8M revenue
Stock declined 39% over past six months despite positive earnings revisions
Analysts predict Zscaler will become profitable this year
📖 Full Retelling
RBC Capital analyst Matthew Hedberg lowered the price target on Zscaler Inc. (NASDAQ:ZS) to $205 from $250 while maintaining an Outperform rating on February 27, 2026, following the cybersecurity company's solid second-quarter results that showed deceleration in organic annual recurring revenue and guidance concerns related to Red Canary integration. Despite Zscaler outperforming key metrics with non-GAAP earnings per share of $1.01, exceeding the consensus estimate of $0.86, and reporting revenue of $815.8 million above the $798.8 million consensus, the investment firm adjusted its outlook due to organic annual recurring revenue decelerating by 100 basis points during the period. The stock has declined 39% over the past six months, though 28 analysts have recently revised their earnings upwards for the upcoming period, indicating mixed market sentiment despite strong fundamentals. Management provided visibility to just under 10% organic net new annual recurring revenue in fiscal year 2026, showing positive sales and product expansion momentum alongside 20% organic growth, while analysts predict the company will achieve profitability this year despite not being profitable over the last twelve months.
Zscaler, Inc. () is an American cloud security company based in San Jose, California. The company offers cloud-based services to protect enterprise networks and data.
RBC Capital Markets is a global investment bank providing services in banking, finance, and capital markets to corporations, institutional investors, asset managers, and governments globally. Locations span 55 offices in 15 countries across North America, the UK, Europe, and the Asia-Pacific region....
Protection of computer systems from information disclosure, theft or damage
Computer security (also cyber security, digital security, or information technology (IT) security) is a subdiscipline within the field of information security. It focuses on protecting computer software, systems, and networks from threats that can lead to unauthorized information disclosure, theft o...
No entity connections available yet for this article.
Original Source
try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry Gold prices steady; on track for strong Feb gains Netflix soars after declining to match Paramount Skydance bid for Warner Bros Dorsey’s Block slashes workforce 40% to embrace AI overhaul, shares gain BofA’s Hartnett sees international stocks beating U.S. this decade (South Africa Philippines Nigeria) RBC Capital lowers Zscaler stock price target on guidance concerns By Investing.com Analyst Ratings Published 02/27/2026, 06:14 AM RBC Capital lowers Zscaler stock price target on guidance concerns 0 ZS 7.49% Investing.com - RBC Capital lowered its price target on Zscaler Inc. (NASDAQ:ZS) to $205 from $250 while maintaining an Outperform rating on the cybersecurity company’s shares. The price target reduction follows Zscaler ’s second-quarter results, which RBC Capital analyst Matthew Hedberg described as solid, with the company outperforming all key metrics. The stock has declined 39% over the past six months, though 28 analysts have recently revised their earnings upwards for the upcoming period, according to InvestingPro data. The quarter saw increased focus on Red Canary, with guidance impacts being contemplated. Organic annual recurring revenue decelerated by 100 basis points during the period. Management provided visibility to just under 10% organic net new annual recurring revenue in fiscal year 2026, indicating positive sales and product expansion momentum alongside 20% organic growth. While not profitable over the last twelve months, analysts predict the company will be profitable this year. InvestingPro analysis suggests the stock is currently undervalued relative to its Fair Value, with comprehensive analysis available in the platform’s Pro Research Report. RBC Capital stated it remains comfortable with Zscaler’s organic trajectory as the company addresses a large and growing market with an expanding platform. In other recent news, Zscaler Inc. reported its second-quarter fiscal 2026 financial results...
