Cantor Fitzgerald analyst Jonathan Ruykhaver lowered the price target on Zscaler (NASDAQ: ZS) to $225.00 (from $300.00) while maintaining a Overweight rating.

The analyst commented, "We reiterate our Overweight rating and lower our 12-month price target to $225 from $300 following strong F3Q26 results but a cautious initial FY27 outlook. Zscaler outperformed F3Q26 FactSet consensus estimates on revenue, ARR, and EPS. The firm raised its full-year FY26 top-line guidance, but lowered free cash flow guidance on higher-than-expected 4Q CapEx as management pulls forward data-center equipment purchases to lock in pricing ahead of expected increases. FY26 CapEx is now expected in the high-single digits as a percentage of revenue, up from mid-single digits previously, with FY27 stepping up a further 200bps as higher component prices flow through to both data center infrastructure and Zero Trust Branch appliances."