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

9,369 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
Strong Free Cash Flow GenerationConsistent, large free cash flow provides durable internal funding for R&D, cloud capacity and acquisitions without heavy reliance on external financing. This strengthens financial flexibility, supports continued product investment and absorbs cyclical spending shocks over the next several quarters.
High Gross Margins With Scaled Recurring RevenueA subscription model with ~77% gross margins and multi-year revenue scale creates structural operating leverage. As customer mix and ARR expand, margins can sustain profitability improvements, allowing GAAP profitability to become durable as operating expenses normalize.
Platform Momentum, ARR Growth And AI/security TractionStrong ARR growth, growing data-security and AI bookings, and meaningful marketplace/partner traction indicate durable product-market fit. Platform breadth (ZTA, branch, data security) and ecosystem partnerships support cross-sell and stickiness, sustaining multi-quarter ARR expansion.
Bears Say
GAAP Unprofitability PersistsDespite margin gains and cash flow, GAAP net losses and negative ROE indicate the business has not yet converted scale into sustained accounting profitability. Continued unprofitability can constrain capital allocation choices and investor confidence until recurring operating profits are consistent.
Guided Growth Deceleration Into FY27A structural slowdown in guidance implies tougher comps and a maturing addressable market or sales cadence headwinds. Slower ARR expansion reduces pacing for margin improvements and constrains long-term revenue trajectory absent accelerated share gains or new TAM expansion.
Sales Leadership Turnover Risks ExecutionSenior sales departures can materially impact new-logo acquisition, large-deal cycles and cross-sell execution for multiple quarters. Rebuilding sales capacity and preserving enterprise relationships takes time, risking slower net new ARR and uneven regional performance during the transition.

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 $23.31B.
      When is Zscaler’s upcoming earnings report date?
      Zscaler’s upcoming earnings report date is Sep 08, 2026 which is in 96 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

                    Zscaler, Inc. operates as a cloud security company worldwide. The company provides Zscaler Internet Access solution that provides users, servers, operational technology, Internet of Things device secure access to externally managed applications, including software-as-a-service (SaaS) applications and Internet destinations; and Zscaler Private Access solution, which is designed to provide access to managed applications hosted internally in data centers, and private or public clouds. It also offers Zscaler Digital Experience that measures end-to-end user experience across business applications, as well as provides an easy to understand digital experience score for each user, application, and location within an enterprise. In addition, the company provides workload segmentation solutions comprising Zscaler Cloud Security Posture Management that identifies and remediates application misconfigurations in SaaS, infrastructure as a service, and platform as a service to reduce risk and ensure compliance with industry and organizational benchmarks; and Zscaler Cloud Workload Segmentation, which is designed to secure application-to-application communications inside public clouds and data centers to stop lateral threat movement, as well as prevents application compromise and reduces the risk of data breaches. Its platform modules include Zscaler Central Authority, Zscaler Enforcement Node, and Zscaler Log Servers. It serves customers in airlines and transportation, conglomerates, consumer goods and retail, financial services, healthcare, manufacturing, media and communications, public sector and education, technology, and telecommunications services industries. The company was formerly known as SafeChannel, Inc., and changed its name to Zscaler, Inc. in August 2008. Zscaler, Inc. was incorporated in 2007 and is headquartered 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

                    $196.91
                    ▲(46.21% Upside)
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                    Ownership Overview

                    18.76%14.39%9.21%38.04%
                    18.76% Insiders
                    9.21% Other Institutional Investors
                    38.04% Public Companies and Individual Investors
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