
ZS faces higher AI infrastructure costs, but scale, pricing actions and operating discipline may help protect margins as demand stays strong.
Zscaler, Inc. is a global cloud security company. The company is headquartered in San Jose, California.
| Revenue (TTM) | $3.17B |
| Gross Profit (TTM) | $2.44B |
| EBITDA | $-60.80M |
| Operating Margin | -3.28% |
| Return on Equity | -3.71% |
| Return on Assets | -1.36% |
| Revenue/Share (TTM) | $19.98 |
| Book Value | $14.63 |
| Price-to-Book | 10.07 |
| Price-to-Sales (TTM) | 7.62 |
| EV/Revenue | 6.98 |
| EV/EBITDA | 153.77 |
| Quarterly Earnings Growth (YoY) | 0.00% |
| Quarterly Revenue Growth (YoY) | 25.40% |
| Shares Outstanding | $161.71M |
| Float | $105.08M |
| % Insiders | 34.96% |
| % Institutions | 58.01% |
Volatility is currently contracting

ZS faces higher AI infrastructure costs, but scale, pricing actions and operating discipline may help protect margins as demand stays strong.

ZS' steep drop, slowing growth and higher AI-related costs worry investors, but strong results, AI security traction and cheaper valuation support holding the stock.

Recently, Zacks.com users have been paying close attention to Zscaler (ZS). This makes it worthwhile to examine what the stock has in store.

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.

Zscaler remains a "Strong Buy" despite recent volatility and decelerating growth, supported by robust cybersecurity demand and AI-driven resilience. ZS delivered 25% YoY revenue growth to $850 million, beat guidance, and achieved 100 bps non-GAAP operating margin expansion, though GAAP losses widened. Management guides for 22% Q4 and 17% FY27 revenue growth, citing sales leadership volatility but expects long-term acceleration from agentic AI adoption.

Every trader and investor should keep one principle close: wait for the opportunistic entry. Opportunistic entries are those unforeseeable, often irrational, price pullbacks that occur in otherwise healthy, growing, and attractive stocks.

Zscaler has experienced a ~40% YTD selloff despite continued quarterly beat-and-raise performance and robust fundamentals. ZS maintains mid-20s revenue growth at a $3 billion+ scale, with no clear signs of AI-driven disruption to its cybersecurity business. The company is transitioning from seat-based to consumption-based pricing, positioning itself ahead of employment-driven demand shifts.

Zscaler (ZS) reported earnings 30 days ago. What's next for the stock?

NEW YORK, June 25, 2026 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Zscaler, Inc. ("Zscaler" or the "Company") (NASDAQ: ZS). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext.

SILVERSTONE, United Kingdom, June 25, 2026 (GLOBE NEWSWIRE) -- Aston Martin Aramco Formula One™ Team today announced a new multi-year partnership with Zscaler™, the cybersecurity platform for the AI era. Aston Martin Aramco will use Zscaler's Zero Trust Exchange™ platform to secure the team's most valuable assets - from car design and race strategy to the real-time data flowing between the track and the UK-based AMRTC.