AlphAIalphai — Financial news for AI agents
theglobeandmail.comSEP 52 min read$ZS

New Buy Rating for Zscaler (ZS), the Technology Giant

Scotiabank analyst Patrick Colville reiterated a Buy rating on Zscaler (ZS) with a $200 price target. Bernstein also issued a Buy, while Morgan Stanley maintained a Hold. Zscaler reported Q2 revenue of $850.48M and a GAAP net loss of $13.88M, up from $678.03M revenue and $4.13M loss last year.

Original reporting
theglobeandmail.com
Published Sep 5, 2026, 11:54 AM UTC
Analysis
alphai AI DeskAI-generated
Added to alphai Sep 5, 2026, 9:22 PM UTC. Informational, not investment advice.
How this was made
alphai summarizes source reporting and applies a structured AI analysis for relevance, timing, sentiment and ticker impact. Always verify material claims with the original publisher.
About alphai AI DeskScoring methodologyReport an issue
New Buy Rating for Zscaler (ZS), the Technology Giant — source image
Source · theglobeandmail.com
Decision brief

The 30-second read

$ZSBullishMed
01

Why it matters

The earnings beat and upgraded rating provide fresh data for traders to reassess valuation.

02

Market read

First‑report earnings and rating upgrade create a short‑term trading opportunity for Zscaler.

03

What to watch

Potential headwinds from competitive pricing pressure and macro‑economic slowdown.

Relevance 7/10Novelty 7/10Timing: today

Background

Zscaler is a cloud‑security provider listed on NASDAQ. The article reports the latest quarterly earnings and analyst rating changes.

Company-level read

Ticker impact

$ZSBullishMedium confidence
Context

Scotiabank reiterated a Buy rating on Zscaler with a $200 price target and the company reported Q1 revenue of $850.48M and a GAAP loss of $13.88M.

Expected impact

Potential upside toward $200 if the market digests the earnings beat and rating upgrade.

Evidence & confidence

Revenue beat and a higher price target from a reputable analyst suggest near‑term buying interest.

Market effects

Sector

Positive earnings and rating upgrade may boost sentiment in the cloud security sector.

Regional

North American tech equities could see modest support.

Global

Limited to investors tracking US cloud‑security stocks.

Counterpoint

What could challenge this read

The GAAP loss widens year‑over‑year, suggesting margin pressure despite revenue growth.

Key entities

  • Company
    Zscaler

    Cloud‑security firm (ticker ZS).

  • Analyst Firm
    Scotiabank

    Issued a Buy rating with a $200 price target.

Read at source← All news

Related articles

SEP 5
$ZSMedAI 8/10

Zscaler, Inc. Q4 2026 Earnings Call Summary

Zscaler reported Q4 2026 net new ARR growth of 17%, excluding Red Canary, driven by Zero Trust adoption and AI-driven security demand. The company's 'Zero Trust Everywhere' strategy saw customer growth from 350 to 950. Fiscal 2027 guidance reflects leadership transitions and elevated CapEx. Zscaler plans to launch 'Agentic SecOps' in September 2026 and expects AI-driven solutions to scale in the second half of the year. The company also announced a workforce restructuring affecting 3% of employe

yahoo.com3 min
SEP 5
$PANWMed

Benzinga Bulls and Bears: Palo Alto, Ciena, Lululemon

Palo Alto Networks (PANW) beat Q4 estimates with $3.41B revenue, up 34% YoY, and issued strong fiscal 2027 guidance. Ciena (CIEN) reported a 37% YoY revenue increase to $1.671B, driven by AI network spending. Zscaler (ZS) posted a Q4 double beat with 25% YoY revenue growth to $898.16M and raised fiscal 2027 guidance. Lululemon (LULU) missed Q2 estimates and lowered its full-year outlook, causing shares to drop 16.4%. Michael Burry criticized Palantir (PLTR) for accounting and valuation concerns,

benzinga.com3 min
SEP 5
$ZSHighAI 8/10

Zscaler Shares Fall as FY2027 Growth Guidance Draws Attention

Zscaler (ZS) shares fell 4.2% premarket after Q4 2026 earnings beat expectations but FY2027 guidance showed slower growth. Revenue was $898.2M (+25% YoY), EPS $1.19. FY2027 revenue growth forecasted at 16.6%-17.5%. The company also announced a 3% workforce reduction with $30M-$33M in restructuring charges.

yahoo.com2 min
SEP 5
$ZSHighAI 8/10

Zscaler Q4 Earnings Call Highlights

Zscaler reported Q4 growth in high-value customers, with 785 generating over $1M ARR (up 18% YoY) and 4,182 over $100K ARR (up 20% YoY). AI security bookings rose 50% sequentially. The company forecasted fiscal 2027 revenue of $3.9B-$3.94B (16.6%-17.5% growth) and ARR of $4.4B-$4.43B (16.6%-17.4% growth).

yahoo.com2 min