Zscaler PT raised to $330 from $330 by Wedbush.
ByAinvest
Wednesday, Sep 3, 2025 10:36 am ET1min read
ZS--
The investment bank's revised target is based on a new revenue model focused on ARR, projecting that Zscaler could reach nearly $5 billion in ARR by fiscal year 2028. This projection aligns with the company's impressive 25.46% revenue growth over the last twelve months. Barclays estimates that of Zscaler’s current $3 billion in ARR, approximately $1 billion comes from three growth vectors—ZTE, DSE, and AI Security—which are growing at twice the rate of the $2 billion in core ARR from products like ZIA and ZPA [1].
Barclays also addressed the reconciliation of $140 million in Red Canary ARR to the $83 million recognized on August 1, estimating that Zscaler’s change in ARR methodology represents a difference of tens of millions in ARR [1].
Despite a significant miss in its Q4 2025 earnings per share (EPS), which fell well below expectations, Zscaler’s revenue provided a slight positive surprise, reaching $719 million compared to the expected $706.95 million. The company posted an EPS of -$0.11, contrasting sharply with the forecasted $0.80, resulting in a surprise of -113.75% [2]. The earnings announcement has drawn attention from investors and analysts, with discussions about the company’s future prospects ongoing.
Zscaler's stock has seen a 7.72% decline over the past month, lagging the Computer and Technology sector's gain of 1.97% and the S&P 500's gain of 1.28%. Investors will be closely watching the company's earnings report to gauge its performance and future prospects [3].
References:
[1] https://www.investing.com/news/analyst-ratings/barclays-raises-zscaler-stock-price-target-to-320-on-strong-arr-growth-93CH-4220752
[2] https://www.ainvest.com/news/zscaler-zs-surges-2-01-500-0-24-gain-key-insights-2508/
[3] https://finance.yahoo.com/news/zscaler-zs-beats-stock-market-214502744.html
Zscaler PT raised to $330 from $330 by Wedbush.
In a significant move, Barclays has increased its price target for Zscaler (NASDAQ:ZS) from $300 to $320, maintaining an Overweight rating. This adjustment comes on the heels of the cybersecurity company's fourth-quarter results, which showed robust growth in Annual Recurring Revenue (ARR) [1].The investment bank's revised target is based on a new revenue model focused on ARR, projecting that Zscaler could reach nearly $5 billion in ARR by fiscal year 2028. This projection aligns with the company's impressive 25.46% revenue growth over the last twelve months. Barclays estimates that of Zscaler’s current $3 billion in ARR, approximately $1 billion comes from three growth vectors—ZTE, DSE, and AI Security—which are growing at twice the rate of the $2 billion in core ARR from products like ZIA and ZPA [1].
Barclays also addressed the reconciliation of $140 million in Red Canary ARR to the $83 million recognized on August 1, estimating that Zscaler’s change in ARR methodology represents a difference of tens of millions in ARR [1].
Despite a significant miss in its Q4 2025 earnings per share (EPS), which fell well below expectations, Zscaler’s revenue provided a slight positive surprise, reaching $719 million compared to the expected $706.95 million. The company posted an EPS of -$0.11, contrasting sharply with the forecasted $0.80, resulting in a surprise of -113.75% [2]. The earnings announcement has drawn attention from investors and analysts, with discussions about the company’s future prospects ongoing.
Zscaler's stock has seen a 7.72% decline over the past month, lagging the Computer and Technology sector's gain of 1.97% and the S&P 500's gain of 1.28%. Investors will be closely watching the company's earnings report to gauge its performance and future prospects [3].
References:
[1] https://www.investing.com/news/analyst-ratings/barclays-raises-zscaler-stock-price-target-to-320-on-strong-arr-growth-93CH-4220752
[2] https://www.ainvest.com/news/zscaler-zs-surges-2-01-500-0-24-gain-key-insights-2508/
[3] https://finance.yahoo.com/news/zscaler-zs-beats-stock-market-214502744.html
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