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Zscaler Issues $1.725 Billion Convertible Notes

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Zscaler Issues $1.725 Billion Convertible Notes

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An update from Zscaler ( (ZS) ) is now available.

On July 3, 2025, Zscaler, Inc. issued $1.725 billion in 0.00% Convertible Senior Notes due 2028, with net proceeds expected to be approximately $1.70 billion. The funds will be used for capped call transactions and general corporate purposes, including potential acquisitions. The notes are convertible under specific conditions and are subject to customary terms and covenants. Additionally, capped call transactions were entered to mitigate potential stock dilution upon note conversion.

The most recent analyst rating on (ZS) stock is a Buy with a $220.00 price target. To see the full list of analyst forecasts on Zscaler stock, see the ZS Stock Forecast page.

Spark’s Take on ZS Stock

According to Spark, TipRanks’ AI Analyst, ZS is a Outperform.

Zscaler’s strong revenue growth and efficient cash flow management are major positives, supported by a robust earnings call indicating optimistic future potential. However, the overbought technical indicators and high valuation without profitability pose risks. Investors should weigh the growth trajectory against current valuation concerns.

To see Spark’s full report on ZS stock, click here.

More about Zscaler

Zscaler, Inc. operates in the cybersecurity industry, providing cloud-based security solutions that protect users, devices, and applications from cyber threats. The company focuses on delivering secure internet access and private application access to organizations worldwide.

Average Trading Volume: 2,763,733

Technical Sentiment Signal: Buy

Current Market Cap: $47.85B

For a thorough assessment of ZS stock, go to TipRanks’ Stock Analysis page.

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