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

9,541 Followers

ZS Stock Chart & Stats

$142.32
$5.79(4.07%)
At close: 4:00 PM EDT
$142.32
$5.79(4.07%)

Bulls Say, Bears Say

Bulls Say
Free Cash Flow GenerationConsistent and rising free cash flow from subscription operations provides durable internal funding for product R&D, M&A integration, and go-to-market investment. Strong FCF improves optionality versus reliance on external capital and supports multiyear platform expansion and margin improvement.
High Gross Margins And Scalable EconomicsSustained high gross margins reflect cloud-native delivery and favorable unit economics, enabling incremental ARR to flow to operating leverage. Durable margin structure underpins profitability potential as sales and G&A scale more slowly than subscription revenue, supporting long-term margin sustainability.
Recurring Revenue Scale And ARR MomentumLarge, growing ARR and concentrated enterprise traction create durable revenue visibility and renewal-driven cash conversion. Strong enterprise deal flow and cross-sell of ZIA/ZPA increase stickiness and average contract value, supporting multi-period revenue stability and predictable growth.
Bears Say
GAAP Profitability Remains NegativeDespite revenue and margin progress, persistent GAAP losses and negative ROE indicate the business has not yet converted scale into consistent accounting profitability. This constrains long-term capital returns and means execution must sustain margin gains to fully realize durable operating profits.
Guidance Signals Growth DecelerationA material step-down in growth rate reduces multi-year revenue runway and raises the bar for sustaining operating leverage. Slower organic net new ARR growth pressures future margin expansion, investment prioritization, and could lengthen the timeline to consistent GAAP profitability.
Rising CapEx And Supply-Chain Cost PressureElevated and potentially rising capex driven by AI/data center demand creates a structural headwind to free cash flow margins and raises ongoing infrastructure costs. Persistent supply-driven price pressure can compress long-term cash conversion and complicate planning for durable margin improvement.

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 $29.83B.
      When is Zscaler’s upcoming earnings report date?
      Zscaler’s upcoming earnings report date is Sep 03, 2026 which is in 14 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

                    $198.18
                    ▲(39.25% Upside)
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                    Ownership Overview

                    17.11%14.31%7.85%43.38%
                    17.11% Insiders
                    7.85% Other Institutional Investors
                    43.38% Public Companies and Individual Investors
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