Zscaler Inc. NASDAQ:ZS Chief Executive Officer Jagtar Singh Chaudhry disposed of 1,941 shares of the company's common stock on March 17, 2026, at a price of $156.5932 per share, for aggregate proceeds of $303,947. The filing shows the sale was carried out to satisfy tax-withholding obligations associated with the vesting of restricted stock units under the company's equity incentive plan.
The share sale occurred while ZS stock was trading not far from its 52-week low of $140.56 and after a 47% decline over the prior six months, according to the filing. InvestingPro analysis, cited in the filing, indicates the stock may be trading below its Fair Value assessment.
Post-transaction holdings
Following the sale, Chaudhry directly holds 345,916 shares of Zscaler. The filing also details several indirect holdings: 2,177,994 shares held through "Jagtar S Chaudhry TTEE The RSJ Trust U/A DTD 06/07/2017," 24,341,267 shares through "Jyoti Chaudhry TTEE The RSP Trust U/A DTD 06/07/2017," and 6,666 shares held by "The P. Jyoti Chaudhry Family Trust dated March 1, 2000 for which Ms. Kaur serves as trustee." Those indirect ownership stakes remain as reported.
Corporate results and strategic moves
Zscaler’s recent operational updates, included in the same reporting cycle, underscore continuing revenue momentum. The company reported second-quarter fiscal 2026 results that showed 26% year-over-year revenue growth and a 25% increase in annual recurring revenue. Management also announced plans to expand data sovereignty capabilities with a deployment planned for Canada.
Analyst reactions and guidance shifts
Market analysts have issued a range of reactions in the wake of Zscaler’s latest results and broader market activity. Wells Fargo initiated coverage with an Overweight rating, citing platform growth and what it described as a favorable entry point driven by concerns around Red Canary. The firm expects a stable core business and growth in areas such as Zero Trust Exchange and artificial intelligence.
Other firms adjusted their price targets and outlooks. TD Cowen lowered its price target to $220 from $260 while maintaining its rating, noting market contraction as a concern. BMO Capital trimmed its target to $210 from $315 but raised its fiscal 2026 annual recurring revenue estimate by $32 million. Stifel cut its price target to $180 from $320, kept a Buy rating, and observed that the quarterly results beat expectations on both revenue and profit metrics. These analyst moves reflect a mix of optimism about platform and product growth and caution about market dynamics.
Additional investor resources
The filing references InvestingPro offerings, noting that InvestingPro provides a Fair Value assessment suggesting the stock may be undervalued and that there are 12 additional exclusive tips available to ZS investors through that service.
What this means for market watchers
The disclosed insider sale was explicit in purpose - to cover tax-withholding related to RSU vesting - and did not represent an open-market decision framed as a view on company prospects in the filing. At the same time, the company’s reported revenue and recurring-revenue gains and the slate of analyst updates provide investors with concrete operational and market-context information to weigh alongside insider activity.