Zscaler (ZS) shares fell 10% to $193.05 this week, even as two major analyst firms raised their price targets on the cybersecurity company. The decline stands in contrast the bullish tone from Wall Street following a leadership change in the company's sales organization.

RBC Capital and Mizuho Lift Targets

RBC Capital raised its price target on Zscaler to $236 from $210 and kept its Outperform rating in place. Mizuho made a similar move, lifting its target to $220 from $210 while also maintaining an Outperform rating on the stock.

Both firms pointed to the same trigger: a change in Zscaler's Chief Revenue Officer role. Mike Rich stepped down from the position for personal reasons, and Ross Tackett has taken over as the new CRO. Tackett previously served as head of worldwide sales and ran the Americas business. He has effectively been running the sales organization since May and also worked alongside Rich in a past role at ServiceNow. CRO moves typically draw close attention at subscription software companies, where sales execution underpins the revenue guidance that management and Wall Street both rely on.

What Analysts Are Saying

RBC Capital said the leadership change is not tied to any disagreement or performance issue. The firm expects a smooth transition with no shift in the company's go-to-market strategy.

Mizuho spoke directly with Zscaler management following the announcement. The firm said leadership emphasized continuity, pointing to Tackett's deep involvement in building the company's forecasts. Mizuho added that a formal reiteration of guidance was not seen as necessary, because Tackett was already central to shaping the outlook when it was issued three weeks ago.

Both firms also tied their higher price targets partly to rising peer multiples across the sector. Mizuho said Zscaler remains well positioned in the SASE and Zero Trust space, despite increased competition in the market. SASE, or secure access service edge, delivers networking and security from the cloud, while Zero Trust architectures verify every user and device rather than relying on a defended network perimeter — categories that have attracted a growing roster of security and networking vendors.

Recent Earnings and Other Analyst Moves

The price target increases follow Zscaler's fourth-quarter results for fiscal 2026. Revenue came in at $898.2 million, up 25% year over year and ahead of consensus by roughly 2%.

FBN Securities raised its target to $190 after the earnings report. JPMorgan kept its target at $215 and reiterated an Overweight rating, noting that revenue and annual recurring revenue beat estimates by a wider margin than earlier in the year. Stephens also raised its target, moving to $225 following the results. Guggenheim kept a Buy rating with a $214 target after the CRO announcement. Taken together, the published targets from the firms named now span $190 to $236.

Zscaler's gross profit margin stands at 77% over the past twelve months, with revenue growth at 25% over the same period. According to InvestingPro data cited in analyst notes, 36 analysts have revised their earnings estimates upward for the coming period, and the platform's fair value estimate for the company sits at $226.27.

Rich will stay on with Zscaler in an advisory capacity through December 2026, an arrangement that gives the new CRO an extended overlap with his predecessor. Zscaler is scheduled to hold its Investor Day on October 6, giving investors a set date to hear directly from the company under its new sales leadership.