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Feb 27, 2026 12:10 PM

Zscaler Posts Q4 Beat, Stock Tanks On Red Canary Contribution To Guidance

Shares of Zscaler Inc (NASDAQ:ZS) tanked in early trading on Friday, despite the company’s upbeat fiscal second-quarter report.

Here are the key analyst insights:

Citizens JMP Securities analyst Trevor Walsh reiterated a Market Outperform rating, while lowering the price target from $355 to $290.

Rosenblatt Securities analyst Catharine Trebnick maintained a Buy rating, while cutting the price target from $280 to $250.

Check out other analyst stock ratings.

Citizens JMP Securities: Although Zscaler reported its quarterly results ahead of expectations, investors remain concerned about "inorganic contribution," Walsh said in a note. Excluding Red Canary's ARR of $114 million, the company's net-new ARR rose 7% year-on-year to $139 million, he added.

Management guided to revenue of $834 million-$836 million ...