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Zscaler (MX:ZS)
NASDAQ:ZS

Zscaler (ZS) Price & Analysis

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ZS Stock Chart & Stats

$2450.00
$0.00(0.00%)
At close: 4:00 PM EDT
$2450.00
$0.00(0.00%)

Bulls Say, Bears Say

Bulls Say
Platform & Subscription ModelZscaler's cloud-native, subscription platform shows durable product breadth and cross-sell: AI Protect and data-security ARR traction, partnerships (Anthropic, OpenAI) and strategic buys (Symmetry Systems, Red Canary) deepen capabilities and stickiness, supporting recurring revenue scale and higher customer lifetime value.
Cash Generation & LiquidityStrong operating and free cash flow generation materially improves financial flexibility. TTM cash flow supports organic investment, M&A integration (e.g., Red Canary), and higher CapEx needs while reducing reliance on external financing, enabling sustained platform investment and margin expansion over the medium term.
High Gross Margins & Operating LeverageConsistently high gross margins and improving non-GAAP operating margins indicate the cloud-delivered security model has attractive unit economics. As ARR scales, fixed-cost dilution can drive durable margin expansion and convert strong top-line growth into sustainable operating profit over the next 2–6 months.
Bears Say
GAAP UnprofitabilityDespite cash strength, the company remains unprofitable on GAAP metrics across periods, with negative net income/EBIT and negative ROE. This structural gap means reported earnings and return-on-equity remain a risk as accounting losses can limit certain investor bases and indicate ongoing cost or amortization pressures to resolve.
Growth Deceleration RiskManagement's FY27 guidance points to mid-teens ARR/revenue growth versus ~24% in FY26, implying meaningful deceleration. For a business valued on durable ARR expansion, a lower growth trajectory increases execution pressure to sustain margins and upsell economics and may signal market saturation or tougher new-logo acquisition ahead.
Rising CapEx & Supply-Chain PressureManagement is pulling forward data-center/branch equipment purchases due to rising memory/storage/processor costs driven by AI demand. Higher, persistent CapEx raises capital intensity and compresses free-cash-flow margins, creating a structural headwind to cash conversion and reinvestment unless offset by stronger revenue or pricing gains.

Zscaler News

ZS FAQ

What was Zscaler’s price range in the past 12 months?
Zscaler lowest stock price was $2000.00 and its highest was $6344.09 in the past 12 months.
    What is Zscaler’s market cap?
    Zscaler’s market cap is $427.64B.
      When is Zscaler’s upcoming earnings report date?
      Zscaler’s upcoming earnings report date is Sep 08, 2026 which is in 40 days.
        How were Zscaler’s earnings last quarter?
        Zscaler released its earnings results on May 26, 2026. The company reported $18.836 earnings per share for the quarter, beating the consensus estimate of $17.615 by $1.221.
          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 18.94.
              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 $18.836 in its last earnings report, beating expectations of $17.615. Following the earnings report the stock price went down -33.394%.
                  Which hedge fund is a major shareholder of Zscaler?
                  Currently, no hedge funds are holding shares in MX: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 MX:ZS earnings summaries

                    ZS Stock 12 Month Forecast

                    Average Price Target

                    $3,396.92
                    ▲(38.65% Upside)
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