Zscaler, Inc. is a global cloud security company. The company is headquartered in San Jose, California.
| Revenue (TTM) | $3.35B |
| Gross Profit (TTM) | $2.58B |
| EBITDA | $74.11M |
| Operating Margin | -1.00% |
| Return on Equity | -2.87% |
| Return on Assets | -1.03% |
| Revenue/Share (TTM) | $20.93 |
| Book Value | $16.05 |
| Price-to-Book | 12.15 |
| Price-to-Sales (TTM) | 8.26 |
| EV/Revenue | 8.09 |
| EV/EBITDA | 152.01 |
| Quarterly Earnings Growth (YoY) | 0.00% |
| Quarterly Revenue Growth (YoY) | 24.90% |
| Shares Outstanding | $163.06M |
| Float | $105.24M |
| % Insiders | 34.67% |
| % Institutions | 53.30% |
Volatility is currently expanding
Zscaler has declined 39% since my previous coverage, underperforming the benchmark's 19% gain. Despite the price collapse and volatility, I see no structural deterioration in ZS's business fundamentals. ZS now trades at approximately 35x forward P/E, which I consider fairly valued given strengthened fundamentals.
Zscaler posted a tenth consecutive earnings beat and sent shares surging, but the real question buried inside the report is whether the AI security boom reflects new enterprise budget dollars or just rebranded spending that was already locked in.
Zscaler is rated a buy due to its leading zero-trust cybersecurity solutions, which are well-positioned to counter escalating AI-driven threats. Despite recent stock underperformance and slowing growth (~25% YoY), I expect ZS to benefit from a surge in cybersecurity spending as AI risks intensify. ZS's recent earnings beat expectations, and while forward guidance is conservative (16.6%-17.5% growth), I believe results will surpass these targets.
Shares of Zscaler Inc (NASDAQ:ZS) are down on Friday, after the company reported its fourth-quarter results.
Zscaler remains undervalued despite a sector rebound, still down ~20% YTD and ~30% YoY. I'm confidently reiterating my buy rating on ZS after strong fiscal results and robust bookings performance. ZS is accelerating ARR growth, directly contradicting prior fears of SaaS sector weakness and seat-driven churn.
Cybersecurity software is under pressure again Friday morning after Zscaler (NASDAQ:ZS | ZS Price Prediction) issued fiscal 2027 growth guidance that overshadowed a clean fourth-quarter beat, and peers are drifting with it.
ZS' Q4 earnings and revenues top estimates as rising platform adoption, AI demand and broad geographic growth drive 25% revenue growth and stronger ARR.
Zscaler sees AI as its largest demand tailwind as Security for AI bookings surge and metered offerings fuel ARR growth into fiscal 2027.
Zscaler, Inc. remains a Buy, supported by robust Q4 results, upbeat FY 2027 guidance, and a compelling growth-adjusted valuation. ZS delivered Q4 non-GAAP EPS of $1.19 (beat), revenue up 25% YoY, and ARR of $3.77B, reflecting strong product momentum. Management projects FY 2027 revenue of $3.91B–$3.94B, non-GAAP EPS of $4.86–$4.90, and free cash flow margin around 23%.
ZScaler (ZS) couldn't muscle an earnings rally for cybersecurity like CrowdStrike (CRWD) did last week. Diane King Hall points to slowing growth as the culprit dragging shares down.
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