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Zscaler NASDAQ: ZS executives outlined how the cybersecurity company is adapting its zero-trust architecture for AI agents, while also discussing new product launches, sales initiatives and the potential for continued growth in its core business.
Zscaler NASDAQ: ZS CEO and Founder Jay Chaudhry said the company entered fiscal 2027 with an expanded product portfolio, improving sales momentum and growing customer interest in AI security and zero-trust architecture.
Zscaler, Inc. (ZS) Presents at Goldman Sachs Communacopia + Technology Conference 2026 Transcript
Zscaler, Inc. (ZS) Presents at Citi's 2026 Global TMT Conference Transcript
ZS' slowing revenue and ARR growth, rising capital spending and weaker cash flow margins cloud its cheap valuation and near-term outlook.
ZS' Z-Flex tops $1.7 billion in fiscal 2026 TCV, lifting customer ARR nearly 30% as flexible contracts support broader platform adoption.
Zacks.com users have recently been watching Zscaler (ZS) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
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 TodayZSZscaler$169.80 -8.00 (-4.50%) As of 09/4/2026 04:00 PM Eastern52-Week Range$114.63▼$336.99Price Target$215.90Add to WatchlistZscaler NASDAQ: ZS gave the market everything it could ask for in its fiscal fourth-quarter 2026 earnings report: outperformance, acceleration, wider margins, and strong guidance. The one thing it didn't give was firm reassurance that the sales leadership transition was going smoothly.
Zscaler faces execution challenges despite industry tailwinds, with FY2027 guidance signaling decelerating revenue and ARR growth. Q4 showed solid margins and net new ARR acceleration, but overall top-line growth remains uninspiring amid strong cybersecurity demand. Strategic partnerships with AWS and CrowdStrike offer potential long-term catalysts, yet immediate business momentum lags sector leaders.
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.