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Zscaler (ZS)
NASDAQ:ZS
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Zscaler (ZS) Price & Analysis

9,499 Followers

ZS Stock Chart & Stats

$134.68
$2.40(1.31%)
At close: 4:00 PM EST
$134.68
$2.40(1.31%)

Bulls Say, Bears Say

Bulls Say
Sustained Revenue ScalePersistent, subscription-driven revenue growth to $3.17B TTM demonstrates durable enterprise adoption of Zscaler's cloud security platform. High gross margins (~77%) imply sustainable product economics that fund R&D and go-to-market, supporting long-term operating leverage as ARR base expands.
Strong Free Cash Flow GenerationRobust and growing free cash flow provides durable financial flexibility to invest in product, inorganic growth, and infrastructure without over-reliance on external financing. Strong cash conversion supports capital allocation for AI/data initiatives and buffers margin variability from cyclical spend.
Platform Momentum & Enterprise TractionAccelerating AI and data-security adoption, expanding marketplace TCV and a rising count of $1M+ customers create network effects and stickiness. Cross-product adoption and strategic partnerships (Anthropic/OpenAI) deepen differentiation and raise switching costs, supporting durable ARR expansion.
Bears Say
Guidance Signals Growth DecelerationAn expected step-down to mid-teens growth materially slows operating leverage and prolongs the period before GAAP profitability is consistently achieved. Slower net new ARR reduces margin expansion tailwinds and raises the bar for sustained investor and customer confidence over 2–4 quarters.
Rising And Pulled-Forward CapExHigher, potentially structural CapEx driven by AI/data infrastructure requirements compresses free cash flow margins and reduces cash available for strategic initiatives. Persistent elevated capital intensity could limit margin upside and require sustained higher FCF to fund growth investments.
Sales Leadership TurnoverTurnover in senior sales roles risks disruption to enterprise go-to-market execution, slowing new-logo acquisition and net new ARR. Replacing experienced leaders can take quarters, creating execution risk that may exacerbate the guided deceleration and delay cross-sell momentum into FY27.

Zscaler News

ZS FAQ

What was Zscaler’s price range in the past 12 months?
Zscaler lowest stock price was $114.63 and its highest was $336.99 in the past 12 months.
    What is Zscaler’s market cap?
    Zscaler’s market cap is $23.21B.
      When is Zscaler’s upcoming earnings report date?
      Zscaler’s upcoming earnings report date is Sep 08, 2026 which is in 60 days.
        How were Zscaler’s earnings last quarter?
        Zscaler released its earnings results on May 26, 2026. The company reported $1.08 earnings per share for the quarter, beating the consensus estimate of $1.01 by $0.07.
          Is Zscaler overvalued?
          According to Wall Street analysts Zscaler’s price is currently Undervalued. Get more investment ideas with TipRanks Premium
            Does Zscaler pay dividends?
            Zscaler does not currently pay dividends.
            What is Zscaler’s EPS estimate?
            Zscaler’s EPS estimate is 1.09.
              How many shares outstanding does Zscaler have?
              Zscaler has 161,709,520 shares outstanding.
                What happened to Zscaler’s price movement after its last earnings report?
                Zscaler reported an EPS of $1.08 in its last earnings report, beating expectations of $1.01. Following the earnings report the stock price went down -31.522%.
                  Which hedge fund is a major shareholder of Zscaler?
                  Currently, no hedge funds are holding shares in ZS
                  What is the TipRanks Smart Score and how is it calculated?
                  Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

                    Company Description

                    Zscaler

                    Globally recognized, Zscaler, Inc. functions as a leading provider of cloud-based security solutions. Its core offerings include Zscaler Internet Access (ZIA), which ensures secure connectivity for a diverse range of entities – including users, servers, operational technology (OT), and IoT devices – when accessing external resources like software-as-a-service (SaaS) applications and general internet destinations. Complementing this, the Zscaler Private Access (ZPA) solution facilitates secure entry to internal applications residing in private or public clouds and traditional data centers. Zscaler also delivers Zscaler Digital Experience (ZDX), a tool that assesses the complete user journey across various business applications. ZDX then generates a clear, digestible digital experience score for individual users, specific applications, and different locations within an organization. Furthermore, the company's portfolio extends to advanced workload segmentation solutions. This category includes Zscaler Cloud Security Posture Management (CSPM), designed to identify and correct application misconfigurations across SaaS, IaaS, and PaaS environments, thereby minimizing risk and upholding compliance standards. Another key offering is Zscaler Cloud Workload Segmentation, specifically engineered to fortify application-to-application communication within public clouds and data centers. Its objective is to thwart lateral threat propagation, safeguard applications from compromise, and ultimately mitigate the potential for data breaches. The underlying platform is built upon integral components such as the Zscaler Central Authority, Zscaler Enforcement Nodes, and Zscaler Log Servers. Serving a diverse global clientele, Zscaler caters to numerous sectors including aviation and transportation, conglomerates, consumer goods and retail, financial services, healthcare, manufacturing, media and communications, public sector and education, as well as technology and telecommunications. Founded in 2007, the company initially operated as SafeChannel, Inc., before rebranding to Zscaler, Inc. in August 2008. Its corporate headquarters are located in San Jose, California.

                    Zscaler (ZS) Earnings & Revenues

                    ZS Earnings Call

                    Q3 2026
                    0:00 / 0:00
                    Earnings Call Sentiment|Positive
                    The call conveyed strong operating performance and clear product and commercial momentum — ARR and revenue both grew 25% YoY, operating margin hit a record 23%, cloud marketplace and AI/security offerings showed accelerating traction, and cash and RPO remain robust. Management, however, took a cautious tone on near-term growth due to recent sales leadership turnover, supply-chain driven CapEx pressure (pull-forward purchases) that compresses quarterly free cash flow, and an early FY27 outlook implying a deceleration to mid-teens growth. Overall the tone is confident about long-term AI-driven opportunity and platform differentiation, while prudent on short-term guide and investments.View all ZS earnings summaries

                    ZS Stock 12 Month Forecast

                    Average Price Target

                    $196.50
                    ▲(45.90% Upside)
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style=\"color:#912767\">Sell 0</span>\n      ","marker":{"lineColor":"#199ca5","enabled":true,"symbol":"circle"}},{"y":136.67,"date":1775001600000,"info":" <span style=\"color:#199ca5\" class=\"mb3 mt2 fonth8_semibold\"> Strong Buy</span>\n            <div class=\"flexrcb px3 displayflex fonth9_semibold\"><span  style=\"color:#199ca5\">Buy 44,\t&nbsp; </span>\n              <span  style=\"color:#828080\">Hold 8, \t&nbsp;</span>\n              <span  style=\"color:#912767\">Sell 0</span>\n      ","marker":{"lineColor":"#199ca5","enabled":true,"symbol":"circle"}},{"y":139.81,"date":1777593600000,"info":" <span style=\"color:#199ca5\" class=\"mb3 mt2 fonth8_semibold\"> Strong Buy</span>\n            <div class=\"flexrcb px3 displayflex fonth9_semibold\"><span  style=\"color:#199ca5\">Buy 51,\t&nbsp; </span>\n              <span  style=\"color:#828080\">Hold 11, \t&nbsp;</span>\n              <span  style=\"color:#912767\">Sell 0</span>\n      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                    Ownership Overview

                    17.11%14.31%0.21%51.52%
                    17.11% Insiders
                    0.21% Other Institutional Investors
                    51.52% Public Companies and Individual Investors
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