Zscaler (ZS) is a compelling buy, trading at a compressed multiple, despite strong growth and a robust data moat in cloud security. ZS benefits from high gross retention, rapid AI/data security expansion, and dominant positioning in AI-agent security, following recent acquisitions. Short-term margin pressure and dilution from acquisitions are outweighed by long-term operating leverage and accelerating revenue growth.
ZS gears up for Q2 earnings with revenues seen up 23% and AI security demand in focus, but tight IT budgets and slower legacy growth loom.
Zscaler Q2 Earnings Preview: What To Watch And Why AI Fears Are Overblown
| Transportation Infrastructure Industry | Industrials Sector | Jagtar Singh Chaudhry CEO | XHAN Exchange | US98980G1022 ISIN |
| US Country | 7,348 Employees | - Last Dividend | - Last Split | 16 Mar 2018 IPO Date |
Zscaler, Inc. is a global cloud security company that specializes in delivering comprehensive security solutions to protect users, workloads, IoT, and OT devices across various industries. Founded in 2007 and initially known as SafeChannel, Inc., the company rebranded to Zscaler, Inc. in August 2008 and is headquartered in San Jose, California. Zscaler is dedicated to enabling secure digital transformation for businesses, ensuring secure access to externally managed applications, including SaaS applications and internet destinations, as well as managed applications hosted internally in data centers and clouds.
Zscaler offers a suite of security solutions designed to provide comprehensive protection and enhanced digital experiences for enterprises across various sectors. These include:
The foundation of Zscaler's platform consists of Zscaler Central Authority, Zscaler Enforcement Node, and Zscaler Log Servers, which work together to provide a secure, scalable, and high-performance infrastructure for all its services.