Zscaler Stock Draws Wall Street Praises Post Strong Q3 Print: Retail Joins The Party

Shares of cloud security provider Zscaler Inc. (ZS) rallied 6.7% in Friday’s premarket session after multiple analysts increased their price target, recognizing the company’s growing demand and AI potential after a better-than-expected third-quarter (Q3) earnings.

The firm’s revenue climbed 23% year-on-year (YoY) to $678 million, beating the analyst consensus estimate of $667.1 million, as per Finchat data.

The adjusted earnings per share (EPS) of $0.84 also surpassed the consensus estimate of $0.76.

Stifel increased its price target on Zscaler to $295 from $270 while maintaining a ‘Buy’ rating on the stock, describing the firm’s Q3 performance as strong. It noted that key metrics exceeded expectations due to solid execution and sustained demand for its expanding zero-trust offerings. 

The research firm noted that Zscaler is showing progress across multiple areas, including rising adoption of its growing product suite and a promising role in AI security.

JP Morgan lifted its price target to $292 from $275 and maintained an ‘Overweight’ rating on the stock. 

In a note to investors, the research firm highlighted that Zscaler delivered strong "beat and raise" results, standing out as competitors face challenges this earnings season. 

JP Morgan noted that revenue, billings, profitability, and free cash flow all exceeded expectations. 

Morgan Stanley raised its price target to $280 from $200, citing strong Q3 results with 25% YoY billings growth. However, it maintained an ‘Equal Weight’ rating due to upcoming uncertainties, including a CFO transition and pending acquisition.

Loop Capital raised its price target to $260 from $250 but maintained a ‘Hold’ rating. The brokerage cited strong execution and steady billings performance, easing prior concerns about fourth-quarter (Q4) projections. 

However, the research firm remains cautious due to the recent go-to-market transition and reliance on upselling to existing customers.

On Stocktwits, retail sentiment around Zscaler changed to ‘extremely bullish’ from ‘neutral’ the previous day.

Zscaler stock gained over 39% in 2025 and over 60% in the last 12 months.

Also See: Wall Street Boosts Dell Price Targets on AI Surge Despite Mixed Q1 Results: Retail Confidence Jumps

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