Zscaler is positioned to benefit from enterprise AI adoption, leveraging its Zero Trust Exchange and expanding usage-based AI security products. ZS's transition to hybrid seat- and consumption-based revenue enables it to scale with AI-driven workflows, acting as a tollbooth for enterprise AI traffic. Strong financials: Q2 FY26 revenue grew 26% YoY to $816M, with ARR at $3.4B and robust free cash flow supporting a net cash position.
Zscaler (ZS) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
ZS shares decline 33.7% in three months amid macro pressure, but AI security, Zero Trust growth and strong results point to potential long-term upside.
Zscaler trades at an EV/Revenue ratio of 8, its historical low, offering significant mean reversion potential versus its 5-year median of 15.3. Market concerns over AI disruption have pressured ZS, but I view AI as a growth catalyst, not a headwind, for top-tier cybersecurity firms. Zscaler's strategic AI integration and data-driven flywheel effect enhance its competitive edge and product efficacy as cyber threats evolve.
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, Inc. (ZS) Presents at Morgan Stanley Technology, Media & Telecom Conference 2026 Transcript
Down as much as 55% from the peak to the trough and over 20% in 2026, it may be time to buy cybersecurity stocks like Palo Alto Networks NASDAQ: PANW and Zscaler NASDAQ: ZS. While valuation concerns plagued and may continue to plague these markets, their share prices are trading at long-term lows and unlikely to fall significantly further.
Zscaler (ZS) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Zscaler (ZS) stock has dropped by 23.8% in under a month, falling from $219.67 on January 27, 2026, to $167.36 at present. What lies ahead?
ZS tops Q2 estimates with 26% revenue growth and strong customer momentum, prompting the company to lift its full-year outlook.
Zscaler, Inc. (ZS) Q2 2026 Earnings Call Transcript
Zscaler (ZS) came out with quarterly earnings of $1.01 per share, beating the Zacks Consensus Estimate of $0.89 per share. This compares to earnings of $0.78 per share a year ago.