Archived explainer. For the current picture see today's ZS page.
Why Is ZSCALER INC (ZS) Stock Down Today?
By the Top Tier Newswire AI Desk · August 26, 2026 at 7:48 AM ET · reviewed against 4 wire stories
ZSCALER INC (ZS) is down -4.34% in the latest session. Our newswire has captured 4 stories on ZS across 3 sources in the last 36 hours, with AI sentiment reading mixed (avg 49/100).
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ZS stock is down 4.34% at $168.42 as of the latest update, driven by Evercore adding the company to its Tactical Underperform list ahead of Q4 earnings. The firm cited concerns over limits in annual recurring revenue (ARR) upside, competitive pressures, and go-to-market risks. This move comes amid mixed analyst coverage, with some firms raising price targets while others express caution.
What Happened
Evercore’s recent inclusion of Zscaler on its Tactical Underperform list has drawn attention to potential near-term risks for the stock. The move follows reports that the company faces challenges in scaling ARR and navigating a competitive landscape. Despite this, Barclays raised its price target for ZS to $192 from $170, and other firms like Guggenheim, Keybanc, Mizuho, and Stifel also maintain positive ratings with raised price targets. However, the negative sentiment from Evercore appears to have taken precedence in the short term, contributing to the stock’s decline.
What The Data Shows
The stock opened at $166.59, a -1.1% gap down from the prior close, and traded as low as $161.40 during the session. Volume remains at 0.0M shares, which is 0.0x the 3-month average. Zscaler’s fundamentals remain mixed: it has a market cap of $28.5B, unprofitable with a TTM EPS of -0.49, and revenue growth of 24.6% TTM. The stock has a beta of 0.92 and a 52-week range of $114.63 to $336.99. On August 26, the stock printed 4 fresh 52-week highs and 33 fresh 52-week lows, highlighting its volatile price action.
What To Watch
The company is expected to report Q4 results soon, and investor focus will shift to whether the results address Evercore’s concerns. Coverage breadth remains mixed, with several analysts raising price targets, but the near-term outlook will depend on earnings performance and how the market interprets the results.
AI-assisted analysis composed exclusively from headlines and data on the Top Tier newswire. Public view is delayed 4 hours from real time. Not financial advice.
ZS · Aug 26 session (5-min) · +4.68% vs prior close · updated 8:52 PM ETAI sentiment, last 36h · averaged over 4 stories · 49/100 neutral
The headlines behind the move
Story flow · 4 stories on the wire, last 36h · hover or tap a dot for the headline
18d agoSeeking AlphaBEARISH 38Analyst
Zscaler in focus as Evercore adds to Tactical Underperform List ahead of Q4 results
Evercore adds Zscaler (ZS) to its Tactical Underperform list ahead of Q4 earnings, citing ARR upside limits, competition and GTM risks—read more.
18d agoThe FlyBEARISH 34Analyst
Zscaler added to ‘Tactical Underperform’ list at Evercore
19d agoThe FlyBULLISH 61Analyst
Zscaler price target raised to $192 from $170 at Barclays
19d agoQuartzBULLISH 63General
Zscaler (ZS) Soars 8.5%: Is Further Upside Left in the Stock? - qz.com
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