Shares of Zscaler Inc (NASDAQ:ZS) are down on Friday, after the company reported its fourth-quarter results.
• Zscaler stock is taking a hit today. Why is ZS stock falling?
Here are some key analyst takeaways:
- Stephens analyst Todd Weller maintained an Overweight rating, while raising the price target from $200 to $225.
- Needham analyst Mike Cikos reiterated a Buy rating, while lifting the price target from $180 to $215.
- Scotiabank analyst Patrick Colville reaffirmed a Sector Outperform rating and price target of $200.
- Canaccord Genuity analyst Kingsley Crane maintained a Buy rating and price target of $210.
- Guggenheim Securities analyst John DiFucci reiterated a Buy rating and price target of $214.
- Cantor Fitzgerald analyst Jonathan Ruykhaver reaffirmed an Overweight rating and price target of $225.
- Rosenblatt Securities analyst Catharine Trebnick maintained a Buy rating and price target of $200.
- BTIG analyst Gray Powell reiterated a Neutral rating on the stock.
Check out other analyst stock ratings.
Stephens: Zscaler exited fiscal 2026 with strong fourth-quarter results, Weller said in a note. The quarter was “clean and relatively uneventful compared to the last few quarters,” he wrote.
Organic NNARR (net new annual recurring revenue) growth of 17% was an acceleration and came ahead of expectations, the analyst stated.
“Trends across key growth drivers (ZTE, Data Security, improving sales productivity, Z-Flex) were positive and the company’s newer Security for AI solutions are experiencing positive early traction,” he further wrote.
Needham: Zscaler’s fourth-quarter ARR grew 25% year-on-year to $3.771 billion, topping consensus estimate of $3.745 billion by $26 million, Cikos said. Management raised ARR growth guidance to 17% from their prior outlook of 16%-17%, he added.
Zscaler has a larger Renewal volume in the first half of fiscal 2027 than the prior-year period, the analyst stated. “After acquiring Red Canary in August 2025, Zscaler is finally launching the integrated Agentic SOC offering next week,” he further wrote.
Scotiabank: Zscaler’s new ARR, excluding Red Canary, accelerated to 17% year-on-year, Colville said. Management lifted their fiscal 2027 ARR guidance, which reflects adjusted net new ARR growth of 4% in the year, he added.
Assuming “a typical beat,” this updated guidance implies new ARR growth of 10%-18% in fiscal 2027, the analyst stated.
“We continue to view Zscaler as an advanced AI beneficiary as Mythos-related readiness drives cybersecurity spend, including multiple CISOs investing real-time in Zero Trust Network Access,” he further wrote.
Canaccord Genuity: Zscaler reported solid results, after guidance just a quarter ago was cut due to two sales leadership departures, Crane said. The company’s organic net new ARR growth accelerated from 7% in fiscal 2025 to 10% in the first half of 2026 and to 17% in the fourth quarter, he added.
“Steady retention plus accelerating net new signals to us that the inflection is skewed toward new business, which is more encouraging,” the analyst wrote. The business model that is evolving is being decoupled from seat counts, which “could be a more durable story,” he further stated.
Guggenheim Securities: After providing disappointing guidance in the previous quarter, Zscaler reported strong fourth-quarter results and guided both first quarter and fiscal 2027 above Street expectations, DiFucci said. Total ARR of $3.771 billion represents 25% year-on-year growth, he added.
New ARR, adjusted for churn and inorganic contribution, is estimated to have grown 19% year-on-year, “implying business momentum,” the analyst wrote. He also estimates adjusted new ARR to have grown by 17% in fiscal 2025, after declining 4% in fiscal 2025.
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Cantor Fitzgerald: Zscaler’s revenue grew 25% year-on-year in the fourth quarter, “reflecting strong customer demand for the Zero Trust Exchange platform,” Ruykhaver said. The company exited fiscal 2026 with ARR of $3.8 billion, up 20% organically, excluding Red Canary, he added.
The new offering that combines Red Canary’s detection technology with Zscaler’s telemetry covers more than 750 billion daily transactions to support detection, investigation, and remediation, the analyst stated. Management expects the first half of fiscal 2027 “to be a ramp period, with the offering beginning to contribute to growth in 2H27 and more meaningfully in FY28,” he further wrote.
Rosenblatt Securities: Zscaler reported a beat on “every guided metric,” Trebnick said. The company reported non-GAAP earnings of $1.19 per share, with non-GAAP operating margin hitting a record high of 24.3%, she added.
Americas drove the outperformance, growing around 30% year-on-year in the fourth quarter and about 31% in the full year, the analyst stated. She noted, however, that the fiscal 2027 ARR guidance implies net new ARR of $625-$655 million, versus $615 million ex-Red Canary in fiscal 2026, which is “roughly 4% organic growth versus the 17% Q4 exit rate.”
BTIG: Zscaler’s reported ARR implies that the company added $232 million in organic net new ARR in the quarter, an increase of 17% year-on-year, Powell said.
While management raised their total ARR outlook, “investors appear concerned that guidance implies $640MM net adds, which is up only 4% from last year,” the analyst wrote. Excluding Red Canary, Zscaler exceeded guidance in fiscal 2026 by $38 million and a similar upside in fiscal 2027 puts NNARR growth at over 10%, he added.
ZS Price Action: Shares of Zscaler had declined by 5.44% to $168.42 at the time of publication on Friday.
