Bank of New York Mellon Corp raised its position in shares of Zscaler, Inc. (NASDAQ:ZS – Free Report) by 7.9% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 494,734 shares of the company’s stock after buying an additional 36,420 shares during the quarter. Bank of New York Mellon Corp owned about 0.31% of Zscaler worth $69,406,000 at the end of the most recent quarter.
Other hedge funds and other institutional investors have also recently modified their holdings of the company. Qsemble Capital Management LP boosted its position in shares of Zscaler by 105.5% in the 4th quarter. Qsemble Capital Management LP now owns 15,773 shares of the company’s stock worth $3,548,000 after purchasing an additional 8,099 shares in the last quarter. Oxbow Advisors LLC bought a new position in shares of Zscaler during the fourth quarter valued at $2,939,000. J. Safra Sarasin Holding AG raised its position in shares of Zscaler by 94.7% in the 4th quarter. J. Safra Sarasin Holding AG now owns 63,627 shares of the company’s stock worth $14,311,000 after purchasing an additional 30,952 shares during the last quarter. Leonteq Securities AG bought a new position in Zscaler in the 4th quarter worth about $4,571,000. Finally, Norges Bank purchased a new stake in Zscaler during the 4th quarter valued at about $79,762,000. 46.45% of the stock is owned by hedge funds and other institutional investors.
Zscaler Stock Down 4.3% ZS stock opened at $142.26 on Thursday. Zscaler, Inc. has a twelve month low of $114.63 and a twelve month high of $336.99. The company has a quick ratio of 1.86, a current ratio of 1.86 and a debt-to-equity ratio of 0.72. The stock has a market cap of $23.00 billion, a P/E ratio of -296.37, a PEG ratio of 85.23 and a beta of 0.96. The business’s 50-day moving average price is $143.71 and its 200-day moving average price is $157.52.
Zscaler (NASDAQ:ZS – Get Free Report) last announced its quarterly earnings data on Tuesday, May 26th. The company reported $1.08 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.01 by $0.07. Zscaler had a negative return on equity of 0.37% and a negative net margin of 2.44%.The company had revenue of $850.48 million during the quarter, compared to the consensus estimate of $835.14 million. During the same period in the previous year, the company posted $0.84 EPS. The firm’s revenue was up 25.4% on a year-over-year basis. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. On average, equities research analysts forecast that Zscaler, Inc. will post 0.12 EPS for the current year.
Insider Activity In related news, CEO Jagtar Singh Chaudhry sold 2,878 shares of the company’s stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $126.43, for a total value of $363,865.54. Following the completion of the transaction, the chief executive officer owned 343,038 shares of the company’s stock, valued at approximately $43,370,294.34. This represents a 0.83% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Robert Schlossman sold 3,146 shares of the company’s stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $126.43, for a total transaction of $397,748.78. Following the completion of the transaction, the insider directly owned 69,366 shares of the company’s stock, valued at $8,769,943.38. This represents a 4.34% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders sold 15,766 shares of company stock valued at $1,978,587. 17.20% of the stock is currently owned by company insiders.
Wall Street Analysts Forecast Growth Several brokerages have issued reports on ZS. Needham & Company LLC reaffirmed a “buy” rating and issued a $180.00 target price on shares of Zscaler in a report on Wednesday, June 10th. The Goldman Sachs Group restated a “neutral” rating and issued a $179.00 price objective on shares of Zscaler in a report on Wednesday, May 27th. Wedbush reissued an “outperform” rating and issued a $220.00 target price on shares of Zscaler in a report on Wednesday, June 10th. JPMorgan Chase & Co. decreased their price target on Zscaler from $250.00 to $205.00 and set an “overweight” rating for the company in a research note on Wednesday, May 27th. Finally, Citigroup reaffirmed a “market outperform” rating on shares of Zscaler in a report on Wednesday, May 27th. Thirty-four equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $214.21.
Get Our Latest Analysis on ZS
Zscaler Profile (Free Report)
Zscaler is a cloud security company that delivers a cloud-native platform to protect users, applications and data as organizations move away from traditional, network-centric security architectures. The company focuses on a zero trust approach that assumes no implicit trust for users or devices, providing secure access to the internet, SaaS applications and private applications regardless of where users are located. Zscaler positions its services as an alternative to legacy appliances and site-centric VPNs, aiming to simplify security while enabling modern, distributed workforces.
Key offerings are built around the Zscaler Zero Trust Exchange, a multi-tenant cloud platform that enforces security and access policies in-line.
Featured Stories Five stocks we like better than Zscaler Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Small Caps Are Crushing the S&P 500—3 Stocks Still Worth Buying Moog Is More Than a Missile Maker, and Wall Street Is Noticing A Boring Dividend Growth Strategy Becomes a Solid Defensive Play Want to see what other hedge funds are holding ZS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Zscaler, Inc. (NASDAQ:ZS – Free Report).
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California Public Employees Retirement System cut its holdings in Zscaler, Inc. (NASDAQ:ZS – Free Report) by 5.4% in the first quarter, according to the company in its most recent disclosure with the SEC. The fund owned 167,823 shares of the company’s stock after selling 9,636 shares during the quarter. California Public Employees Retirement System owned about 0.10% of Zscaler worth $23,544,000 at the end of the most recent reporting period.
Several other institutional investors have also added to or reduced their stakes in the business. Binnacle Investments Inc purchased a new stake in Zscaler during the 3rd quarter worth approximately $25,000. AlphaCentric Advisors LLC purchased a new position in shares of Zscaler in the fourth quarter worth $29,000. University of Texas Texas AM Investment Management Co. purchased a new position in shares of Zscaler in the fourth quarter worth $30,000. Mcguire Capital Advisors Inc. acquired a new stake in shares of Zscaler during the fourth quarter worth $32,000. Finally, Family CFO Inc acquired a new stake in shares of Zscaler during the fourth quarter worth $34,000. Institutional investors and hedge funds own 46.45% of the company’s stock.
Insider Activity In other Zscaler news, CFO Kevin Rubin sold 3,000 shares of the company’s stock in a transaction dated Thursday, June 25th. The shares were sold at an average price of $124.22, for a total value of $372,660.00. Following the completion of the transaction, the chief financial officer owned 41,901 shares in the company, valued at approximately $5,204,942.22. This represents a 6.68% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Adam Geller sold 2,817 shares of the firm’s stock in a transaction dated Monday, June 22nd. The shares were sold at an average price of $122.60, for a total value of $345,364.20. Following the sale, the insider owned 42,314 shares in the company, valued at $5,187,696.40. This trade represents a 6.24% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 15,766 shares of company stock valued at $1,978,587. 17.20% of the stock is currently owned by company insiders.
Analyst Upgrades and Downgrades Several equities analysts recently issued reports on ZS shares. Wells Fargo & Company cut their target price on Zscaler from $210.00 to $180.00 and set an “overweight” rating on the stock in a research report on Thursday, May 28th. HC Wainwright raised Zscaler from a “buy” rating to a “buy” rating in a research report on Monday, May 18th. Royal Bank Of Canada reiterated an “outperform” rating and set a $200.00 price target on shares of Zscaler in a research note on Wednesday, June 10th. Wedbush reissued an “outperform” rating and issued a $220.00 price objective on shares of Zscaler in a report on Wednesday, June 10th. Finally, Stephens reissued an “overweight” rating and issued a $200.00 price objective on shares of Zscaler in a report on Friday, June 12th. Thirty-four investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $214.21.
Check Out Our Latest Report on ZS
Zscaler Stock Performance Shares of ZS stock opened at $142.26 on Thursday. Zscaler, Inc. has a 52-week low of $114.63 and a 52-week high of $336.99. The company has a quick ratio of 1.86, a current ratio of 1.86 and a debt-to-equity ratio of 0.72. The stock has a market cap of $23.00 billion, a PE ratio of -296.37, a price-to-earnings-growth ratio of 85.23 and a beta of 0.96. The business has a 50-day simple moving average of $143.71 and a 200-day simple moving average of $157.52.
Zscaler (NASDAQ:ZS – Get Free Report) last announced its quarterly earnings results on Tuesday, May 26th. The company reported $1.08 earnings per share for the quarter, beating the consensus estimate of $1.01 by $0.07. Zscaler had a negative return on equity of 0.37% and a negative net margin of 2.44%.The company had revenue of $850.48 million during the quarter, compared to analysts’ expectations of $835.14 million. During the same period last year, the business earned $0.84 earnings per share. Zscaler’s quarterly revenue was up 25.4% on a year-over-year basis. Zscaler has set its Q4 2026 guidance at 1.080-1.090 EPS and its FY 2026 guidance at 4.100-4.110 EPS. On average, equities analysts expect that Zscaler, Inc. will post 0.12 EPS for the current year.
About Zscaler (Free Report)
Zscaler is a cloud security company that delivers a cloud-native platform to protect users, applications and data as organizations move away from traditional, network-centric security architectures. The company focuses on a zero trust approach that assumes no implicit trust for users or devices, providing secure access to the internet, SaaS applications and private applications regardless of where users are located. Zscaler positions its services as an alternative to legacy appliances and site-centric VPNs, aiming to simplify security while enabling modern, distributed workforces.
Key offerings are built around the Zscaler Zero Trust Exchange, a multi-tenant cloud platform that enforces security and access policies in-line.
Further Reading Five stocks we like better than Zscaler Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Small Caps Are Crushing the S&P 500—3 Stocks Still Worth Buying Moog Is More Than a Missile Maker, and Wall Street Is Noticing A Boring Dividend Growth Strategy Becomes a Solid Defensive Play
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Zscaler (ZS - Free Report) closed at $142.26 in the latest trading session, marking a -4.34% move from the prior day. This move lagged the S&P 500's daily loss of 0.14%. On the other hand, the Dow registered a loss of 0.01%, and the technology-centric Nasdaq decreased by 0.57%.
The stock of cloud-based information security provider has risen by 17.87% in the past month, leading the Computer and Technology sector's loss of 4.82% and the S&P 500's gain of 0.25%.
Market participants will be closely following the financial results of Zscaler in its upcoming release. It is anticipated that the company will report an EPS of $1.09, marking a 22.47% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $877.19 million, reflecting a 21.96% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.14 per share and a revenue of $3.33 billion, representing changes of +26.22% and +24.57%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Zscaler. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Zscaler holds a Zacks Rank of #3 (Hold).
With respect to valuation, Zscaler is currently being traded at a Forward P/E ratio of 35.96. This indicates a discount in contrast to its industry's Forward P/E of 50.14.
Investors should also note that ZS has a PEG ratio of 2.46 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Security industry had an average PEG ratio of 3.11 as trading concluded yesterday.
The Security industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 48, this industry ranks in the top 20% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Zscaler (ZS - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this cloud-based information security provider have returned +17.9%, compared to the Zacks S&P 500 composite's +0.3% change. During this period, the Zacks Security industry, which Zscaler falls in, has gained 15%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Zscaler is expected to post earnings of $1.09 per share, indicating a change of +22.5% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $4.14 points to a change of +26.2% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $4.58 indicates a change of +10.7% from what Zscaler is expected to report a year ago. Over the past month, the estimate has changed +0.1%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Zscaler is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Zscaler, the consensus sales estimate of $877.19 million for the current quarter points to a year-over-year change of +22%. The $3.33 billion and $3.9 billion estimates for the current and next fiscal years indicate changes of +24.6% and +17.2%, respectively.
Last Reported Results and Surprise HistoryZscaler reported revenues of $850.47 million in the last reported quarter, representing a year-over-year change of +25.4%. EPS of $1.08 for the same period compares with $0.84 a year ago.
Compared to the Zacks Consensus Estimate of $834.76 million, the reported revenues represent a surprise of +1.88%. The EPS surprise was +8%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Zscaler is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Zscaler. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
LOS ANGELES, July 22, 2026 (GLOBE NEWSWIRE) -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Zscaler, Inc. (“Zscaler” or “the Company”) (NASDAQ: ZS) for violations of the securities laws.
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Zscaler is the subject of a report by CNBC on May 27, 2026, which stated the Company’s shares “tumbled more than 23% after the cloud security company guided for current-quarter revenue of between $875 million to $878 million, falling short of the $879 million analysts were seeking, per LSEG.” Based on this news, shares of Zscaler opened down more than 30% on the same day.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
The Schall Law Firm
Brian Schall, Esq.
310-301-3335 [email protected]
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. Do they really matter, though?
Let's take a look at what these Wall Street heavyweights have to say about Zscaler (ZS - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Zscaler currently has an average brokerage recommendation (ABR) of 1.44, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 45 brokerage firms. An ABR of 1.44 approximates between Strong Buy and Buy.
Of the 45 recommendations that derive the current ABR, 34 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 75.6% and 4.4% of all recommendations.
Brokerage Recommendation Trends for ZS
Check price target & stock forecast for Zscaler here>>>
The ABR suggests buying Zscaler, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is ZS Worth Investing In?Looking at the earnings estimate revisions for Zscaler, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $4.14.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Zscaler. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Zscaler.
Key Takeaways Zscaler had more than 700 Zero Trust Everywhere customers, up from over 550 a quarter earlier.ARR rose 25% to $3.5 billion, while remaining performance obligations reached about $6.5 billion at Q3 end.Customers are expanding deployments across user, cloud, branch and data security solutions. Zscaler Inc.’s (ZS - Free Report) Zero Trust Everywhere strategy is becoming an important growth driver as enterprises look to secure users, cloud workloads and branch locations through a single platform. Instead of relying on multiple security products, customers are increasingly adopting Zscaler’s integrated Zero Trust architecture, creating more opportunities for the company to expand revenues from existing accounts.
The adoption trend is gaining momentum. At the end of the third quarter of fiscal 2026, Zscaler had more than 700 Zero Trust Everywhere enterprise customers, up from more than 550 in the previous quarter. These customers use the company’s Zero Trust Users, Zero Trust Cloud and Zero Trust Branch solutions together, reflecting broader platform adoption across organizations.
This strategy is also encouraging larger customer commitments. During the quarter, Zscaler reported annual recurring revenues (ARR) of more than $3.5 billion, up 25% year over year, while remaining performance obligations increased roughly 30% to about $6.5 billion. The company also closed a record number of new annual contract value deals worth more than $1 million during the third quarter.
Customer success stories highlight the opportunity. A healthcare technology company initially sought user security but later expanded its deployment to include Zero Trust Cloud, Zero Trust Branch and multiple data security modules. Existing customers are also increasing spending as they broaden platform adoption.
As cyber threats become more sophisticated and AI workloads continue to grow, enterprises are looking for unified security platforms rather than standalone products. With its expanding Zero Trust Everywhere customer base and strong cross-selling opportunities, Zscaler appears well-positioned to drive sustained revenue growth in the coming years. The Zacks Consensus Estimate for fiscal 2026 and 2027 revenues indicates year-over-year growth of 24.6% and 17.2%, respectively.
How Do Zscaler’s Rivals Compare in Platform Adoption?Cybersecurity companies pursuing a similar platform expansion strategy are Palo Alto Networks, Inc. (PANW - Free Report) and Fortinet, Inc. (FTNT - Free Report) .
Palo Alto Networks has been driving its platformization strategy by encouraging enterprises to replace multiple point products with its integrated security platform. In the third quarter of fiscal 2026, the company generated more than $3 billion in revenues, up 31% year over year, while next-generation security ARR climbed 60% to $8.13 billion. Its broad portfolio across network security, cloud security and security operations enables customers to consolidate vendors, increasing cross-selling opportunities and recurring revenues.
Fortinet is also expanding its unified cybersecurity platform through Secure Networking, Unified SASE and Security Operations solutions. In the first quarter of 2026, the company reported revenues of approximately $1.85 billion, up 20% year over year, while Unified SASE billings rose 23%. Fortinet continues to benefit as enterprises modernize branch security and adopt integrated security architectures.
Zscaler’s Price Performance, Valuation & EstimatesZS shares have plunged 33.3% year to date against the Zacks Security industry’s surge of 73.5%.
Zscaler YTD Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, ZS trades at a forward price-to-sales ratio of 6.24, significantly below the industry’s average of 19.35.
Zscaler Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Zscaler’s fiscal 2026 and 2027 earnings implies a year-over-year increase of 26.2% and 10.6%, respectively. Estimates for fiscal 2026 and 2027 have been revised upward over the past 60 days.
Image Source: Zacks Investment Research
Zscaler currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Jim Cramer just told his followers that “there will always be another DeepSeek,” and he named CrowdStrike and Palo Alto Networks as the cybersecurity plays for a world where every enterprise is scrambling to wall off frontier AI models and compromised agents. The money is already moving: Palo Alto Networks trades up 92.18% year-to-date, and the AI-security capex cycle is only beginning. Here are the five names to know before the next shock hits.
1. Zscaler (ZS): The Zero-Trust Sleeper Zscaler (NASDAQ:ZS | ZS Price Prediction) is the name most investors are underweighting into the AI security wave, and that is exactly the setup. CEO Jay Chaudhry has been explicit: “Zscaler is ideally positioned as the cybersecurity platform for the AI era. Our differentiated Zero Trust SASE architecture, which hides applications from attackers and eliminates lateral movement, has never been more essential in securing against threats exposed by frontier models and compromised AI agents.” Zscaler is a launch partner on Anthropic’s Project Glasswing and OpenAI’s DayBreak, and it announced intent to acquire Symmetry Systems to govern AI agent communication at scale.
The Q3 FY26 numbers, reported May 26, 2026, show a business firing on all cylinders even as the stock lags. Revenue landed at $850.48 million, up 25.4% year over year. ARR hit $3.52 billion, and non-GAAP EPS of $1.08 extended the beat streak to nine straight quarters.
Here is the setup nobody is talking about: shares are down 34.9% year-to-date while fundamentals accelerate, and the analyst target sits at $192.58 against a current price near $147.67. The obvious heavyweight is next.
2. Palo Alto Networks (PANW): The Platform Giant Cramer Named Palo Alto Networks (NASDAQ:PANW) is the platform consolidator every CISO calls first when frontier AI models start leaking. CEO Nikesh Arora told investors on the Q3 FY26 call that “Q3 was a standout quarter for Palo Alto Networks, with accelerating organic bookings growth as customers turn to us to secure their AI deployments at scale,” adding that “the latest advancements at the AI frontier have increased the level of urgency around cybersecurity.” Cramer named this stock directly.
The Q3 FY26 report from June 2, 2026 is the tell. Revenue hit $3.00 billion, up 31.1% year over year, Next-Generation Security ARR reached $8.10 billion, up 60% year over year, and RPO climbed to $18.4 billion, up 36% year over year.
Shares are up 26.47% in the last month alone. But the next name is where AI security got its true “Mythos moment.”
3. CrowdStrike (CRWD): The AI Security Infrastructure Call CrowdStrike (NASDAQ:CRWD) is the other name Cramer flagged, and CEO George Kurtz used the Q1 FY27 call to plant a flag: “In Q1, the worlds of cybersecurity and frontier AI collided: this was the Mythos moment. CrowdStrike is AI security infrastructure, critical to successful AI adoption.” The company launched Project QuiltWorks with OpenAI and Anthropic and Charlotte AI AgentWorks with AWS, NVIDIA, and OpenAI. This is the endpoint layer where every compromised agent gets caught.
The Q1 FY27 earnings report from June 3, 2026 was the eighth straight EPS beat. Revenue hit $1.39 billion, up 25.57% year over year, net new ARR jumped 32% year over year to $255.80 million, and full-year net new ARR growth guidance was raised 520 basis points to 27.7%.
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The stock has responded, up 73.87% year-to-date and the four-for-one split effective July 2, 2026 broadened retail access at exactly the right moment. Now for the name quietly repricing off a hardware refresh nobody saw coming.
4. Fortinet (FTNT): The Hardware Refresh No One Modeled Fortinet (NASDAQ:FTNT) is the pure-play beneficiary of two colliding forces: a hardware refresh cycle for the #1 firewall leader with 55% unit market share, and an AI threat environment that requires appliances actually capable of inspecting encrypted traffic at line rate. FortiOS 8.0 shipped with AI-driven security and quantum-safe capabilities, and Fortinet is integrated with NVIDIA on BlueField-3 DPUs for AI Factory security and is an Anthropic Project Glasswing partner.
Q1 FY26 was the tell. Product revenue exploded 41% year over year to $645.10 million, billings grew 31% year over year to $2.09 billion, and free cash flow hit a record $1.01 billion, up 26.32% year over year.
Shares are up 102.47% year-to-date, and Fortinet returned $823 million in Q1 buybacks. But the payoff pick is what the AI agents themselves actually run on.
5. Cloudflare (NET): The Network Every AI Agent Runs On If Cramer’s thesis is that AI shocks keep coming, Cloudflare (NYSE:NET) is the pick that turns the entire scenario upside down. CEO Matthew Prince put it bluntly: “AI is driving a fundamental re-platforming of the Internet and a paradigm shift in how software is created and consumed; it’s shaping up to be the biggest tailwind we’ve ever seen in Cloudflare’s history.” He followed with the line every portfolio manager should tape to a monitor: “If agents are the new users of the web, Cloudflare is the platform they run on and the network they pass through.” Cloudflare just cut 1,100 employees to rebuild itself as an agentic AI-first company.
The Q1 FY26 earnings report from May 7, 2026 validated the pivot. Revenue hit $639.75 million, up 33.5% year over year, current RPO grew 34% year over year, and free cash flow of $84.07 million was up 59.03% year over year. Q4 FY25 closed the largest ACV deal in company history at $42.5 million per year.
Shares are up 38.2% year-to-date and 43.54% over the last year. Every AI agent that pings the internet raises the toll Cloudflare collects.
The Bottom Line Cramer’s “another DeepSeek” framing is the base case. Enterprise budgets are already redirecting toward the layer that governs frontier models and rogue agents, and the stock action is already reflecting it: PANW up 92.18%, FTNT up 102.47%, and CRWD up 73.87% year-to-date, while ZS still trails its own fundamentals. The next AI shock is a matter of when. These are the five names sitting in the line of fire.
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Zscaler (ZS - Free Report) closed at $148.19 in the latest trading session, marking a -2.56% move from the prior day. This change lagged the S&P 500's 0.38% gain on the day. Meanwhile, the Dow experienced a rise of 0.29%, and the technology-dominated Nasdaq saw an increase of 0.62%.
Heading into today, shares of the cloud-based information security provider had gained 19.54% over the past month, outpacing the Computer and Technology sector's loss of 0.53% and the S&P 500's gain of 1.61%.
The investment community will be paying close attention to the earnings performance of Zscaler in its upcoming release. The company's earnings per share (EPS) are projected to be $1.09, reflecting a 22.47% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $877.19 million, up 21.96% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.14 per share and revenue of $3.33 billion, which would represent changes of +26.22% and +24.57%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Zscaler. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 9.1% higher. Right now, Zscaler possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Zscaler is currently trading at a Forward P/E ratio of 36.77. This represents a discount compared to its industry average Forward P/E of 52.91.
Meanwhile, ZS's PEG ratio is currently 2.51. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Security industry held an average PEG ratio of 3.27.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 46, which puts it in the top 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Bragar Eagel & Squire, P.C. Litigation Partner Brandon Walker Encourages Investors Who Suffered Losses In Zscaler (ZS) To Contact Him Directly To Discuss Their Options
If you purchased or acquired stock in Zscaler and would like to discuss your legal rights, contact Bragar Eagel & Squire partners Brandon Walker or Melissa Fortunato by email at [email protected] or by telephone at (212) 355-4648.
Click here to participate in the action.
NEW YORK, July 14, 2026 (GLOBE NEWSWIRE) --
What’s Happening:
Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, is investigating potential claims against Zscaler, Inc. (“Zscaler” or the “Company”) (NASDAQ:ZS) on behalf of Zscaler stockholders. Our investigation concerns whether Zscaler has violated the federal securities laws and/or engaged in other unlawful business practices. Investigation Details:
On May 27, 2026, the Company issued weaker-than-expected guidance and disclosed disruptions tied to sales leadership changes, despite reporting quarterly results that exceeded analyst expectations. Reports indicated that investors were concerned about slowing growth projections, weaker customer expansion, and uncertainty surrounding the Company's sales execution and outlook. Following this news, Zscaler's stock suffered its steepest single-day decline since going public.
On this news, Zscaler's stock price fell $58.19, or 31.52% to close at $126.41 per share on May 27, 2026. Next Steps:
If you purchased or otherwise acquired Zscaler shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at [email protected], by telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you. About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, South Carolina, and California. The firm represents individual and institutional investors in securities, derivative, and commercial litigation as well as individuals in consumer protection and data privacy litigation. The firm has a nationwide practice and routinely handles cases in both federal and state courts. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Follow us for updates on LinkedIn and Facebook, and keep up with other news by following Brandon Walker, Esq. on LinkedIn.
Key Takeaways Zscaler is expanding Zero Trust adoption with larger enterprise deals across users, workloads and branches. ZS trades at a much lower forward sales multiple than PANW, offering a more attractive valuation.PANW faces margin pressure from higher integration costs tied to multiple acquisitions. Palo Alto Networks (PANW - Free Report) and Zscaler (ZS - Free Report) are both at the forefront of the cybersecurity space, playing key roles in guarding organizations from extensive cyberattacks. While PANW focuses broadly on next-generation firewalls, cloud security and AI-driven threat detection, Zscaler is a leader in zero-trust security and specializes in secure access service edge and cloud security.
Both PANW and ZS are riding the key industry trends, driven by the mounting incidents of credential theft, remote desktop protocol breaches and social engineering-based strikes by malicious actors. However, from an investment point of view, one stock offers a more favorable outlook than the other right now. Let’s break down their fundamentals, growth prospects, market challenges and valuation to determine which stock offers a more compelling investment case.
The Case for PANW StockPalo Alto Networks remains a cybersecurity leader, offering solutions for network security, cloud security and endpoint solutions for customers who need full enterprise security support. Its next-generation firewalls and advanced threat detection technologies are widely recognized and adopted globally.
Palo Alto Networks’ wide range of innovative products, strong customer base and growing opportunities in areas like Zero Trust, Secure Access Service Edge (SASE) and private 5G security continue to support its long-term growth potential. For example, in the third quarter of fiscal 2026, SASE was Palo Alto Networks’ fastest-growing segment, with SASE Annual recurring revenues (ARR) increasing 40% year over year. PANW's SASE business is benefiting from strong customer demand for cloud-delivered networking and security solutions as enterprises continue to support hybrid work environments and secure access to cloud applications.
However, as a result of back-to-back acquisitions, PANW is incurring high integration-related costs, including onboarding employees, aligning go-to-market teams and integrating systems and operations. Acquisition-related costs in the third quarter of fiscal 2026 amounted to $113 million, a whopping increase from $5 million incurred in the prior quarter. These costs are expected to hurt the company's profitability before the benefits of synergies from acquisitions are fully realized.
Further, PANW’s non-GAAP operating expenses rose to $1.46 billion in the third quarter of fiscal 2026, up from $1.19 billion incurred in the prior quarter. As a percentage of revenues, operating expenses expanded 290 basis points sequentially. As a result, non-GAAP operating income margin contracted 320 basis points on a sequential basis. PANW is incurring rising costs, which could lead to slower operating leverage and warrant some caution about the company’s near-term prospects.
The Case for Zscaler StockZscaler is seeing strong adoption of its Zero Trust Everywhere strategy, which is helping the company expand beyond its traditional user security offerings. The strategy combines security for users, cloud workloads and branch locations on a single platform, allowing customers to secure more parts of their IT environment through Zscaler.
The company ended the third quarter of fiscal 2026 with more than 700 Zero Trust Everywhere enterprises, up from more than 550 in the previous quarter. Management stated that customers are increasingly looking for security solutions that protect users, workloads and branches together rather than using separate products. This trend should help Zero Trust Everywhere support the rising adoption of Zscaler’s platform.
The strategy is also helping Zscaler win larger deals. During the third quarter, the company signed the largest branch deal in its history with a healthcare system that is deploying its Zero Trust Branch solution across 2,000 sites. Zscaler also won a seven-figure deal with a healthcare technology company that adopted Zero Trust Cloud, Zero Trust Branch and four data security modules. In another deal, a large automotive manufacturer expanded its use of Zero Trust Cloud to secure its multi-cloud environment.
Management believes demand for Zero Trust Everywhere will continue to increase as enterprises adopt more cloud applications, connected devices and AI technologies. Customers are no longer focused only on securing users. They are also looking to secure workloads, branches and AI environments through a unified platform.
Zscaler views this as an important competitive advantage over traditional firewall-based security vendors. As more customers adopt multiple products across the platform, Zero Trust Everywhere could help the company increase customer spending, win larger deals and support long-term growth.
How do Earnings Estimates Compare for PANW & ZS?Zscaler has a steady earnings growth outlook compared with Palo Alto Networks.
The Zacks Consensus Estimate for PANW’s fiscal 2026 and 2027 EPS is pegged at $3.77 and $4.08, respectively. The estimates for fiscal 2026 and 2027 have been revised up by 6 cents and 8 cents, respectively, over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Zscaler’s fiscal 2026 and 2027 EPS is pinned at $4.14 and $4.57, respectively. The estimates for fiscal 2026 and 2027 have been revised upward by 13 cents and 3 cents, respectively, over the past 60 days.
Image Source: Zacks Investment Research
PANW vs. ZS: Price Performance and ValuationYear to date, shares of PANW have surged 79.2%, while ZS shares have plunged 36.9%.
PANW Vs. ZS: YTD Price Return Performance
Image Source: Zacks Investment Research
Currently, ZS is trading at a forward sales multiple of 5.92X, significantly lower than Palo Alto Networks’ forward sales multiple of 19.79X. Zscaler’s reasonable valuation makes it more attractive for investors looking for value and stability.
PANW vs. ZS: Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
Conclusion: ZS Has an Edge Over PANWBoth Palo Alto Networks and Zscaler are key players in the cybersecurity space, but their near-term outlooks are quite different. Palo Alto Networks faces near-term risks from rising integration costs due to large acquisitions, which are hurting the company’s margins.
In contrast, Zscaler shows steadier execution, where the company is witnessing strong adoption of its security products. Further, ZS’ reasonable valuation offers some downside protection as well, giving ZS a clear edge over PANW for investors seeking exposure to cybersecurity growth at a fair price.
Zscaler and Palo Alto Networks carry a Zacks Rank #3 (Hold) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Significant Losses In Zscaler To Contact Him Directly To Discuss Their Options
If you suffered significant losses in Zscaler stock or options and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
[You may also click here for additional information]
New York, New York--(Newsfile Corp. - July 11, 2026) - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Zscaler, Inc. ("Zscaler" or the "Company") (NASDAQ: ZS).
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
On May 27, 2026, the Company issued weaker-than-expected guidance and disclosed disruptions tied to sales leadership changes, despite reporting quarterly results that exceeded analyst expectations. Reports indicated that investors were concerned about slowing growth projections, weaker customer expansion, and uncertainty surrounding the Company's sales execution and outlook. Following this news, Zscaler's stock suffered its steepest single-day decline since going public.
On this news, Zscaler's stock price fell $58.19, or 31.52% to close at $126.41 per share on May 27, 2026.
To learn more about the Zscaler investigation, go to www.faruqilaw.com/ZS or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
Follow us for updates on LinkedIn, on X, or on Facebook.
Frequently Asked Questions (FAQ) for Investors Regarding the Zscaler Securities Investigation:
What is the Zscaler securities investigation about?
The investigation concerns whether Zscaler misled investors regarding its growth outlook, sales execution, customer expansion trends, and the impact of sales leadership changes before issuing weaker-than-expected guidance.
Who may be eligible to participate in the investigation?
Investors who purchased Zscaler (NASDAQ: ZS) stock or options and suffered losses, particularly following the May 27, 2026 stock decline, may have legal rights and should evaluate their options.
What is a lead plaintiff, and how can I seek appointment?
If a securities class action is filed, a lead plaintiff represents the interests of other investors and helps oversee the litigation. Eligible investors may seek appointment by filing a motion before any court-imposed deadline.
Why should investors contact Faruqi & Faruqi, LLP?
Faruqi & Faruqi, LLP has represented investors in securities litigation for decades and has recovered hundreds of millions of dollars for shareholders. Investors who purchased Zscaler securities may contact the firm to discuss their legal rights and potential claims at no cost or obligation.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/304727
Source: Faruqi & Faruqi LLP
Ready to Announce with Confidence? Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.
Zscaler (ZS - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, ZS broke out above the 50-day moving average, suggesting a short-term bullish trend.
The 50-day simple moving average, which is one of three major moving averages, is widely used by traders and analysts to establish support and resistance levels for a range of securities. Because it's the first sign of an up or down trend, the 50-day is considered to be more important.
Shares of ZS have been moving higher over the past four weeks, up 16.7%. Plus, the company is currently a Zacks Rank #3 (Hold) stock, suggesting that ZS could be poised for a continued surge.
Looking at ZS's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 14 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.
Investors should think about putting ZS on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.
In the latest trading session, Zscaler (ZS - Free Report) closed at $143.55, marking a -3.98% move from the previous day. This change lagged the S&P 500's 0.28% loss on the day. Elsewhere, the Dow lost 1.09%, while the tech-heavy Nasdaq added 0.2%.
The stock of cloud-based information security provider has risen by 18.8% in the past month, leading the Computer and Technology sector's loss of 1.22% and the S&P 500's gain of 1.64%.
Analysts and investors alike will be keeping a close eye on the performance of Zscaler in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.09, showcasing a 22.47% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $877.19 million, indicating a 21.96% growth compared to the corresponding quarter of the prior year.
ZS's full-year Zacks Consensus Estimates are calling for earnings of $4.14 per share and revenue of $3.33 billion. These results would represent year-over-year changes of +26.22% and +24.57%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Zscaler. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 9.1% higher within the past month. At present, Zscaler boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, Zscaler is holding a Forward P/E ratio of 36.14. For comparison, its industry has an average Forward P/E of 50.32, which means Zscaler is trading at a discount to the group.
It is also worth noting that ZS currently has a PEG ratio of 2.47. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ZS's industry had an average PEG ratio of 3.31 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 169, this industry ranks in the bottom 32% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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.
Key Takeaways Zscaler expects fiscal 2026 capex to reach high single digits of revenues as hardware costs rise.Zscaler raised branch appliance prices and is buying equipment early to lock in current prices.Zscaler revenues rose 25% to $850M in fiscal Q3, with annual recurring revenues above $3.5B. Zscaler, Inc. (ZS - Free Report) is facing rising infrastructure costs as demand for artificial intelligence (AI)-powered cybersecurity services increases. Higher prices for memory, storage and processors are expected to raise spending on data center equipment and Zero Trust Branch appliances. However, the company believes its growing scale, pricing actions and operational discipline can help offset these cost pressures over time.
Management expects capital expenditures to reach the high single digits as a percentage of revenues in fiscal 2026 compared with its earlier expectation of the mid-single digits. It also anticipates fiscal 2027 capital expenditures as a percentage of revenues to rise by as much as 200 basis points from the 2026 level because of higher hardware costs. To reduce the impact, Zscaler has already increased prices for its branch appliances and is purchasing equipment early to lock in current prices.
Despite these near-term challenges, the company continues to deliver strong financial performance. In the third quarter of fiscal 2026, revenues increased 25% year over year to $850 million, while annual recurring revenues exceeded $3.5 billion. Remaining performance obligations reached roughly $6.5 billion, providing strong visibility into future revenues.
Profitability also remains healthy. Zscaler’s third-quarter non-GAAP gross margin expanded 40 basis points year over year to 80.7%, while non-GAAP operating margin increased by 140 basis points to 23%. Year to date, the company generated a free cash flow margin of 29%, highlighting its ability to fund growth while maintaining financial discipline.
As its customer base expands and long-term contracts grow, Zscaler's larger revenue scale should help absorb higher infrastructure costs. Continued demand for AI security and Zero Trust solutions could further strengthen its operating leverage over the long run. The Zacks Consensus Estimate for fiscal 2026 is currently pegged at $3.33 billion, indicating a year-over-year increase of approximately 25%.
How Are ZS’ Rivals Managing Rising Infrastructure Costs?Zscaler’s major competitors, including Palo Alto Networks, Inc. (PANW - Free Report) and CrowdStrike Holdings, Inc. (CRWD - Free Report) , are also investing heavily in AI infrastructure to strengthen their cybersecurity capabilities.
Palo Alto Networks is investing heavily in AI, cloud security and platform integration while using its large scale to protect margins. In the third quarter of fiscal 2026, revenues increased 31% year over year to $3 billion, and next-generation security ARR surpassed $8 billion. Palo Alto Networks continues to consolidate multiple security products into one platform, helping spread infrastructure costs across a larger customer base and supporting long-term profitability.
CrowdStrike is also expanding AI-powered capabilities while keeping profitability strong. In the first quarter of fiscal 2027, revenues rose 26% year over year to approximately $1.39 billion, while annual recurring revenues reached about $5.51 billion, up 24%. Its cloud-native Falcon platform reduces the need for on-premise hardware, allowing the company to scale efficiently even as AI workloads increase.
Zscaler’s Price Performance, Valuation & EstimatesZS shares have plunged 33.5% year to date against the Zacks Security industry’s surge of 72.3%.
Zscaler YTD Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, ZS trades at a forward price-to-sales ratio of 6.25, significantly below the industry’s average of 19.33.
Zscaler Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Zscaler’s fiscal 2026 and 2027 earnings implies year-over-year increases of 26.2% and 10.6%, respectively. Estimates for fiscal 2026 and 2027 have been revised upward over the past 60 days.
Image Source: Zacks Investment Research
Zscaler currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zscaler (ZS - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this cloud-based information security provider have returned +12.7%, compared to the Zacks S&P 500 composite's -0.9% change. During this period, the Zacks Security industry, which Zscaler falls in, has lost 11.9%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Zscaler is expected to post earnings of $1.09 per share, indicating a change of +22.5% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $4.14 points to a change of +26.2% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $4.57 indicates a change of +10.6% from what Zscaler is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Zscaler is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Zscaler, the consensus sales estimate for the current quarter of $877.19 million indicates a year-over-year change of +22%. For the current and next fiscal years, $3.33 billion and $3.9 billion estimates indicate +24.6% and +17.2% changes, respectively.
Last Reported Results and Surprise HistoryZscaler reported revenues of $850.47 million in the last reported quarter, representing a year-over-year change of +25.4%. EPS of $1.08 for the same period compares with $0.84 a year ago.
Compared to the Zacks Consensus Estimate of $834.76 million, the reported revenues represent a surprise of +1.88%. The EPS surprise was +8%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Zscaler is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Zscaler. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Significant Losses In Zscaler To Contact Him Directly To Discuss Their Options
If you suffered significant losses in Zscaler stock or options and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
[You may also click here for additional information]
NEW YORK, July 05, 2026 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Zscaler, Inc. (“Zscaler” or the “Company”) (NASDAQ: ZS).
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
On May 27, 2026, the Company issued weaker-than-expected guidance and disclosed disruptions tied to sales leadership changes, despite reporting quarterly results that exceeded analyst expectations. Reports indicated that investors were concerned about slowing growth projections, weaker customer expansion, and uncertainty surrounding the Company’s sales execution and outlook. Following this news, Zscaler’s stock suffered its steepest single-day decline since going public.
On this news, Zscaler’s stock price fell $58.19, or 31.52% to close at $126.41 per share on May 27, 2026.
To learn more about the Zscaler investigation, go to www.faruqilaw.com/ZS or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
Follow us for updates on LinkedIn, on X, or on Facebook.
Frequently Asked Questions (FAQ) for Investors Regarding the Zscaler Securities Investigation:
What is the Zscaler securities investigation about?
The investigation concerns whether Zscaler misled investors regarding its growth outlook, sales execution, customer expansion trends, and the impact of sales leadership changes before issuing weaker-than-expected guidance.
Who may be eligible to participate in the investigation?
Investors who purchased Zscaler (NASDAQ: ZS) stock or options and suffered losses, particularly following the May 27, 2026 stock decline, may have legal rights and should evaluate their options.
What is a lead plaintiff, and how can I seek appointment?
If a securities class action is filed, a lead plaintiff represents the interests of other investors and helps oversee the litigation. Eligible investors may seek appointment by filing a motion before any court-imposed deadline.
Why should investors contact Faruqi & Faruqi, LLP?
Faruqi & Faruqi, LLP has represented investors in securities litigation for decades and has recovered hundreds of millions of dollars for shareholders. Investors who purchased Zscaler securities may contact the firm to discuss their legal rights and potential claims at no cost or obligation.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/7f60c456-51b6-4096-a862-d5d3beda6cc5
Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Significant Losses In Zscaler To Contact Him Directly To Discuss Their Options
If you suffered significant losses in Zscaler stock or options and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
[You may also click here for additional information]
New York, New York--(Newsfile Corp. - July 4, 2026) - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Zscaler, Inc. ("Zscaler" or the "Company") (NASDAQ: ZS).
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
On May 27, 2026, the Company issued weaker-than-expected guidance and disclosed disruptions tied to sales leadership changes, despite reporting quarterly results that exceeded analyst expectations. Reports indicated that investors were concerned about slowing growth projections, weaker customer expansion, and uncertainty surrounding the Company's sales execution and outlook. Following this news, Zscaler's stock suffered its steepest single-day decline since going public.
On this news, Zscaler's stock price fell $58.19, or 31.52% to close at $126.41 per share on May 27, 2026.
To learn more about the Zscaler investigation, go to www.faruqilaw.com/ZS or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
Follow us for updates on LinkedIn, on X, or on Facebook.
Frequently Asked Questions (FAQ) for Investors Regarding the Zscaler Securities Investigation:
What is the Zscaler securities investigation about?
The investigation concerns whether Zscaler misled investors regarding its growth outlook, sales execution, customer expansion trends, and the impact of sales leadership changes before issuing weaker-than-expected guidance.
Who may be eligible to participate in the investigation?
Investors who purchased Zscaler (NASDAQ: ZS) stock or options and suffered losses, particularly following the May 27, 2026 stock decline, may have legal rights and should evaluate their options.
What is a lead plaintiff, and how can I seek appointment?
If a securities class action is filed, a lead plaintiff represents the interests of other investors and helps oversee the litigation. Eligible investors may seek appointment by filing a motion before any court-imposed deadline.
Why should investors contact Faruqi & Faruqi, LLP?
Faruqi & Faruqi, LLP has represented investors in securities litigation for decades and has recovered hundreds of millions of dollars for shareholders. Investors who purchased Zscaler securities may contact the firm to discuss their legal rights and potential claims at no cost or obligation.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/303782
Source: Faruqi & Faruqi LLP
Ready to Announce with Confidence? Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.
Zscaler's (ZS +0.72%) stock price has dipped by roughly 34% year to date as continued net losses and a decelerating revenue growth rate weigh down on the cybersecurity stock. The company may get a boost as its cybersecurity solutions can safeguard artificial intelligence (AI) agents, which are expected to become more popular. However, there are meaningful hurdles that can prolong this correction.
Image source: Getty Images.
Zscaler's revenue growth has been steadily decelerating When a stock delivers substantial year-over-year revenue growth, it's easier to look over high net losses and focus on the bullish thesis. However, those same losses become more central to a stock analysis once revenue growth slows.
That has been the case for Zscaler in recent years. It has a five-year annualized revenue growth rate of 44% that drops to 34.8% for its three-year CAGR. Zscaler only reported 25% year-over-year revenue growth in its fiscal 2026 third quarter. It's a sign that growth has slowed down considerably, and the company remains unprofitable.
Zscaler mentioned in its Q3 FY26 press release that it is attracting new customers and expanding relationships with existing ones while hinting at a focus on "driving profitable growth across multiple vectors."
Profitability may be on the way soon, based on the company only posting a -1.6% net profit margin in its fiscal 2026 third quarter. However, the excitement about profitability may be muted by a steady trend of slower revenue growth.
Today's Change
(
0.72
%) $
1.05
Current Price
$
147.50
It's really hard to value Zscaler, but guidance suggests the overall picture will worsen Investors can't use the P/E ratio to assess Zscaler since it is unprofitable. The stock has a 6.6 price-to-sales ratio, which is much lower than those of CrowdStrike and Fortinet. It's not the best metric to use, since a company on the verge of bankruptcy can have a price-to-sales ratio below 1, but other valuation metrics like the P/E and PEG ratios aren't suitable at this stage.
While Zscaler has a healthy balance sheet that includes $4.6 billion in total current assets, its long-term outlook isn't great. Although the company touted agentic AI as a meaningful opportunity, guidance suggests that revenue deceleration will continue.
Zscaler anticipates 16% to 17% year-over-year revenue growth in fiscal 2027. It's a far cry from the 44% annualized revenue growth rate over the past five years. The company's financial growth rates are well removed from what they were when Zscaler commanded a price of almost $400 per share back in 2021.
Decelerating growth, combined with guidance suggesting more of the same, doesn't mean the AI opportunity is as groundbreaking as the company suggests. Artificial intelligence has been a major catalyst for many companies, but the numbers suggest this type of transformation isn't currently underway at Zscaler.
Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CrowdStrike, Fortinet, and Zscaler. The Motley Fool has a disclosure policy.
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. Do they really matter, though?
Let's take a look at what these Wall Street heavyweights have to say about Zscaler (ZS - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Zscaler currently has an average brokerage recommendation (ABR) of 1.44, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 45 brokerage firms. An ABR of 1.44 approximates between Strong Buy and Buy.
Of the 45 recommendations that derive the current ABR, 34 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 75.6% and 4.4% of all recommendations.
Brokerage Recommendation Trends for ZS
Check price target & stock forecast for Zscaler here>>>
While the ABR calls for buying Zscaler, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is ZS Worth Investing In?Looking at the earnings estimate revisions for Zscaler, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $4.13.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Zscaler. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Zscaler.
Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Significant Losses In Zscaler To Contact Him Directly To Discuss Their Options
If you suffered significant losses in Zscaler stock or options and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
[You may also click here for additional information]
New York, New York--(Newsfile Corp. - June 30, 2026) - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Zscaler, Inc. ("Zscaler" or the "Company") (NASDAQ: ZS).
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
On May 27, 2026, the Company issued weaker-than-expected guidance and disclosed disruptions tied to sales leadership changes, despite reporting quarterly results that exceeded analyst expectations. Reports indicated that investors were concerned about slowing growth projections, weaker customer expansion, and uncertainty surrounding the Company's sales execution and outlook. Following this news, Zscaler's stock suffered its steepest single-day decline since going public.
On this news, Zscaler's stock price fell $58.19, or 31.52% to close at $126.41 per share on May 27, 2026.
To learn more about the Zscaler investigation, go to www.faruqilaw.com/ZS or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
Follow us for updates on LinkedIn, on X, or on Facebook.
Frequently Asked Questions (FAQ) for Investors Regarding the Zscaler Securities Investigation:
What is the Zscaler securities investigation about?
The investigation concerns whether Zscaler misled investors regarding its growth outlook, sales execution, customer expansion trends, and the impact of sales leadership changes before issuing weaker-than-expected guidance.
Who may be eligible to participate in the investigation?
Investors who purchased Zscaler (NASDAQ: ZS) stock or options and suffered losses, particularly following the May 27, 2026 stock decline, may have legal rights and should evaluate their options.
What is a lead plaintiff, and how can I seek appointment?
If a securities class action is filed, a lead plaintiff represents the interests of other investors and helps oversee the litigation. Eligible investors may seek appointment by filing a motion before any court-imposed deadline.
Why should investors contact Faruqi & Faruqi, LLP?
Faruqi & Faruqi, LLP has represented investors in securities litigation for decades and has recovered hundreds of millions of dollars for shareholders. Investors who purchased Zscaler securities may contact the firm to discuss their legal rights and potential claims at no cost or obligation.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/303501
Source: Faruqi & Faruqi LLP
Ready to Announce with Confidence? Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.
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. The story in July is that, between-cycle market angst, AI fears, and growth concerns, entry points have opened up in many high-quality stocks.
The likely outcome is that the headwinds that have been impairing price action as of early summer 2026 will begin to fade by early fall, at which point price recoveries will begin, if not before.
This is a fair market value price provided by Massive. Learn more.
52-Week Range$3.80▼
$24.23Price Target$21.67
Amprius Technologies' NYSE: AMPX June price pullback was driven in large part by short sellers, who sold based on valid concerns about production capacity, order volume, and the company’s scalability. However, early-year results and orders suggest acceleration will continue in the upcoming quarters and may gain momentum as production ramps up.
This year’s catalysts include the U.S. government’s push to build up its drone capabilities and the Matternet deal, which marks a major commercial milestone and promises additional catalysts in the coming quarters. One such catalyst would be progress in battery cell design for Matternet’s drone delivery fleet, an eventual design win that would result in subsequent product orders.
The company's upcoming Q2 results are another catalyst, expected to affirm the momentum seen in the previous quarter. Analysts forecast revenue to grow by more than 100% and the path to profitability to clear.
The 10 analysts tracked by MarketBeat rate the stock a Buy, with 90% Buy-side bias, and expect it to rise 65% from the late-June support target.
Oracle: Deeply Oversold With Backlog Conversion Closing InOracle Today
$148.35 -0.18 (-0.12%)
As of 02:46 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$134.57▼
$345.72Dividend Yield1.35%
P/E Ratio25.43
Price Target$268.27
Oracle’s NYSE: ORCL share price continues to be punished for its massive spending plans, growing debt, and dilution. However, the market is mispricing the stock, treating it as an emerging startup rather than a blue-chip tech company with a backlog of going on a trillion dollars. The takeaway is that this year’s price weakness is a historical opportunity to buy an AI-critical name at pennies on the dollar.
Trading near $150, Oracle’s forward price-to-earnings multiple (P/E) falls into the low-single digits within 10 years, suggesting several hundred basis points of stock price upside will be realized as backlog converts to revenue, cash flow, and earnings. MarketBeat tracks 38 analysts rating ORCL as a consensus Moderate Buy with 79% Buy-side bias and 80% upside from early 2026’s lows.
Snowflake: Melt-Up Can Gain MomentumSnowflake Today
$252.13 +3.17 (+1.27%)
As of 02:46 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$118.30▼
$284.99Price Target$293.53
Snowflake’s NYSE: SNOW stock price melt-up began earlier this year when its results affirmed the AI-driven SaaS-pocalypse wasn’t happening. What is happening is that AI is underpinning demand for business, business is accelerating, and profitability is improving. Analysts responded well to Snowflake's earnings news, raising the stock price outlook and setting the market up to advance.
The technical outlook is solid, with the market up sharply in Q2 and consolidating near highs. Convergence in the MACD suggests the market is getting strong and that fresh highs are coming. Analysts' trends suggest only modest upside at the consensus, but even the consensus would be sufficient for a fresh high. The fresh high is significant as it would open the door to a more substantial technical move, more than 100% at the high-end range.
Salesforce: Left for Dead, Generates Cash Flow, Buys Back SharesSalesforce Today
$158.62 +0.25 (+0.16%)
As of 02:46 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$146.32▼
$276.80Dividend Yield1.11%
P/E Ratio18.35
Price Target$255.14
Salesforce’s NYSE: CRM stock price hit fresh lows in June despite the deep value presented and the strength of the company's Q1 results. The sticking point was the guidance, which was viewed as mixed relative to the high bar analysts set.
Salesforce is not only growing but has accelerated back to a double-digit growth pace and is expected to continue that pace in upcoming quarters.
More importantly, Salesforce generates substantial cash flow and uses it to buy back shares. Buybacks reduced the count by an average of 1.9% for Q1 over the trailing 12-month period.
Forty-three analysts rate CRM as a consensus Moderate Buy with 63% Buy-side bias. CRM stock trades at a potential floor, the analysts' lowest recorded target, with 65% upside forecasted by the consensus.
Zscaler: Cautious Guidance Sets Stage for Rapid Price RecoveryZscaler Today
$138.06 +5.80 (+4.39%)
As of 02:46 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$114.63▼
$336.99Price Target$213.97
Zscaler’s NASDAQ: ZS stock price is down while its peers are in rally mode due to a shift in sales teams. The company’s key sales managers left, creating a temporary gap that prompted management to issue cautious guidance.
It will take time for the gap to be filled, but it will be, and sales will continue at a strong pace because Zscaler provides utility for its clients. The cloud-native platform secures remote access, limiting use to authorized personnel. It also inspects web traffic and protects data.
The bulk of analysts' revisions spurred by the firm's earnings news were reaffirmed ratings and price targets. Analysts assign ZS a consensus Moderate Buy rating. There is an 82% Buy-side bias within the data, and a forecast for a 55% upside from the 2026 lows.
Should You Invest $1,000 in Amprius Technologies Right Now?Before you consider Amprius Technologies, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Amprius Technologies wasn't on the list.
While Amprius Technologies currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
The AI boom is creating opportunities across semiconductors, cloud computing, enterprise software, infrastructure, cybersecurity, and automation.
Inside this report, you’ll find 10 companies positioned to benefit as artificial intelligence moves from hype to real-world deployment and becomes a core growth driver for corporate America.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of ZS, CRM, MSFT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of ZS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Significant Losses In Zscaler To Contact Him Directly To Discuss Their Options
If you suffered significant losses in Zscaler stock or options and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
[You may also click here for additional information]
New York, New York--(Newsfile Corp. - June 28, 2026) - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Zscaler, Inc. ("Zscaler" or the "Company") (NASDAQ: ZS).
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
On May 27, 2026, the Company issued weaker-than-expected guidance and disclosed disruptions tied to sales leadership changes, despite reporting quarterly results that exceeded analyst expectations. Reports indicated that investors were concerned about slowing growth projections, weaker customer expansion, and uncertainty surrounding the Company's sales execution and outlook. Following this news, Zscaler's stock suffered its steepest single-day decline since going public.
On this news, Zscaler's stock price fell $58.19, or 31.52% to close at $126.41 per share on May 27, 2026.
To learn more about the Zscaler investigation, go to www.faruqilaw.com/ZS or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
Follow us for updates on LinkedIn, on X, or on Facebook.
Frequently Asked Questions (FAQ) for Investors Regarding the Zscaler Securities Investigation:
What is the Zscaler securities investigation about?
The investigation concerns whether Zscaler misled investors regarding its growth outlook, sales execution, customer expansion trends, and the impact of sales leadership changes before issuing weaker-than-expected guidance.
Who may be eligible to participate in the investigation?
Investors who purchased Zscaler (NASDAQ: ZS) stock or options and suffered losses, particularly following the May 27, 2026 stock decline, may have legal rights and should evaluate their options.
What is a lead plaintiff, and how can I seek appointment?
If a securities class action is filed, a lead plaintiff represents the interests of other investors and helps oversee the litigation. Eligible investors may seek appointment by filing a motion before any court-imposed deadline.
Why should investors contact Faruqi & Faruqi, LLP?
Faruqi & Faruqi, LLP has represented investors in securities litigation for decades and has recovered hundreds of millions of dollars for shareholders. Investors who purchased Zscaler securities may contact the firm to discuss their legal rights and potential claims at no cost or obligation.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/303120
Source: Faruqi & Faruqi LLP
Ready to Announce with Confidence? Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.
A month has gone by since the last earnings report for Zscaler (ZS - Free Report) . Shares have added about 0.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Zscaler due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Zscaler, Inc. before we dive into how investors and analysts have reacted as of late.
Zscaler Q3 Earnings Surpass Estimates, Revenues Increase Y/YZscaler posted third-quarter fiscal 2026 non-GAAP earnings of $1.08 per share, up 28.6% year over year. The figure beat the Zacks Consensus Estimate of $1.00 by 8%.
Zscaler’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 8.4%.
Revenues rose 25% year over year to $850.4 million, topping the Zacks Consensus Estimate of $834 million by 1.88% and exceeding management’s guidance of $834-$836 million. The quarter reflected continued demand for the company’s Zero Trust platform, supported by expanding customer commitments.
Zscaler’s Q3 in DetailZscaler’s third-quarter momentum was broad-based geographically. The Americas represented 56% of revenues in the quarter, up approximately 31% year over year, and delivered the strongest growth rate among regions. EMEA accounted for 28% of revenues, up approximately 16%, while Asia Pacific and Japan contributed 16%, rising about 23%.
The company also noted that roughly 46% of its remaining performance obligation was classified as current, underscoring near-term visibility tied to committed, non-cancelable future revenues.
Remaining Performance Obligations (“RPO”), representing Zscaler’s committed non-cancelable future revenues, were $6.5 billion as of April 30, which increased 30% year over year. Current RPO accounted for 46% of the total revenues.
Enterprise traction continued to reflect in the customer mix. Zscaler ended the quarter with 748 customers generating more than $1 million of ARR, an 18% year-over-year increase. Customers generating more than $100,000 of ARR reached 4,003, up 19% from the prior-year period. Total ARR increased 25% year over year to $3.5 billion.
The company mentioned that newer offerings delivered just over 30% of new ACV in the quarter, and the ARR tied to those offerings more than doubled from the year-ago period, supporting broader platform adoption. Management highlighted record $1 million-plus new ACV deals in the quarter, pointing to continued success in securing larger, multi-year engagements and expanding relationships across its Zero Trust Exchange offerings.
Profitability improved as operating discipline offset investment needs. Non-GAAP gross margin was 80.7% compared with 80.3% a year ago, reflecting the company’s high-margin subscription model.
Non-GAAP operating income increased 34% year over year to $195.8 million. The non-GAAP operating margin expanded 140 basis points to 23%, with management citing leverage in sales and marketing as a key contributor.
Zscaler’s Balance Sheet & Cash FlowAs of April 30, 2026, Zscaler had $3.5 billion in cash, cash equivalents and short-term investments compared with $3.5 billion as of Jan. 31, 2026, and $1.7 billion of debt. Management also pointed to higher capital expenditures as a factor in its updated cash flow outlook.
The company generated operating and free cash flows of $198 million and $136 million, respectively, during the fiscal third quarter.
Zscaler's Guidance for FY26For the fourth quarter of fiscal 2026, Zscaler expects revenues of $875-$878 million.
Non-GAAP earnings per share are projected between $1.08 and $1.09.
For fiscal 2026, management forecasts its revenue outlook in the range of $3.3295 billion to $3.3325 billion, reflecting year-over-year growth of 24.6% to 24.7%.
Non-GAAP earnings per share for fiscal 2026 are expected in the band of $4.10-$4.11.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a upward trend in estimates revision.
The consensus estimate has shifted 531.25% due to these changes.
VGM ScoresCurrently, Zscaler has a average Growth Score of C, a score with the same score on the momentum front. However, the stock has a score of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Zscaler has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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. Zscaler’s platform will connect the race team and applications directly and securely, without exposing the network to attackers.
Formula One® represents one of the most technologically advanced and data-intensive environments in global sport, where vast volumes of data and critical operational systems underpin performance both on and off the track. A single race weekend can generate more than a terabyte of telemetry from hundreds of sensors on each car, all of it flowing in real-time to engineers across different time zones. Both Aston Martin Aramco and Zscaler operate in environments where milliseconds matter, decisions can’t wait, and a single point of failure can be catastrophic - whether on track or defending against sophisticated cyber attacks.
Today, Zscaler, which protects more than 45% of the Fortune 500, joins Aston Martin Aramco Formula One™ Team as Global Cybersecurity Partner supporting the team’s long-term ambition to power high-speed innovation and fuel its transformation into a championship-winning team. Zscaler branding will debut on the nose, seatbelts and wing mirrors of the AMR26, whilst also being featured on the driver’s overalls at the Austrian Grand Prix.
Jefferson Slack, Managing Director, Commercial and Marketing, Aston Martin Aramco Formula One™ Team: “We’re pleased to welcome Zscaler to our team as a Global Cybersecurity Partner. This partnership brings together two organizations invested in performance in highly demanding environments. Zscaler’s belief in our long-term vision both on and off track reflects the momentum we are continuing to build across our business. Partnerships like this play an important role in supporting the future of our organization and strengthening the technology ecosystem around the team.”
Sunil Frida, Chief Marketing Officer, Zscaler: “Formula One® is where the future of enterprise technology gets tested at 300 km/h. Every car is a mobile data center, every race is a global, distributed operation, and every millisecond counts. In an era where threats move at machine speed, defending against attackers requires advanced AI. That’s exactly the world Zscaler was built for. We’re proud to provide the Aston Martin Aramco Formula One™ Team with the AI-driven security, speed, and resilience that modern sport demands.”
Follow our journey this season and get the latest updates on our partnership here.
About Aston Martin Aramco Formula One™ Team
With history dating back to 1913 and its founders Lionel Martin and Robert Bamford, Aston Martin has a storied history rooted in racing. Early success at the Aston Hill Climb inspired a legacy of crafting high-performance luxury vehicles. The brand debuted in Grand Prix racing in 1922, claimed outright victory at Le Mans in 1959 and returned to Formula One in 2021 under Lawrence Stroll’s leadership.
2026 marks the beginning of a new era for Aston Martin Aramco, as the team becomes a full works operation for the first time. Honda will provide the power units, working alongside Aramco and Valvoline to deliver cutting-edge sustainable fuels and high-performance lubricants. Adrian Newey, Managing Technical Partner, takes on the additional role of Team Principal, leading the team into the new era of technical regulations.
On track, the team’s driver line-up features experienced Canadian Lance Stroll and double World Champion Fernando Alonso. Jak Crawford, having served as Young Development Driver, becomes the team’s official Third Driver in 2026, alongside Test and Reserve Driver Stoffel Vandoorne and Team Ambassador Pedro de la Rosa. Mari Boya, competing in FIA Formula 2, and Mathilda Paatz, racing in the all-female F1 ACADEMY series, form the team’s Driver Academy. Mathilda will be guided by the team’s Head of F1 ACADEMY and Driver Ambassador, Jessica Hawkins.
Off-track, Aston Martin Aramco continues to drive progress through its I / AM fan engagement platform, and Make A Mark ESG programme, driving sustainability, inclusion and community engagement. Partnerships with Racing Pride, Spinal Track, and the Aleto Foundation support inclusivity, accessibility, and leadership development. The team’s commitment to energy efficiency is certified by ISO 50001 compliance.
About Zscaler
Zscaler (NASDAQ: ZS) is a pioneer and global leader in zero trust security. The world’s largest businesses, critical infrastructure organizations, and government agencies rely on Zscaler to secure users, branches, applications, data & devices, and to accelerate digital transformation initiatives. Distributed across more than 160 public exchanges globally and thousands of private exchanges at the edge, the Zscaler Zero Trust Exchange™ platform combined with advanced AI combats billions of cyber threats and policy violations every day and unlocks productivity gains for modern enterprises by reducing costs and complexity.
, /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 [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Zscaler and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On May 26, 2026, Zscaler reported its financial results for the third quarter of its 2026 fiscal year. Although Zscaler's revenue and earnings exceeded expectations, the Company guided for current-quarter revenue of between $875 million to $878 million, falling short of the $879 million consensus expectation.
On this news, Zscaler's stock price fell $58.19 per share, or 31.52%, to close at $126.41 per share on May 27, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
Key Takeaways Z-Flex generated more than $480M in TCV in Q3, rising more than 60% sequentially for Zscaler.Zscaler saw ARR rise 25% YoY to over $3.5B, while remaining performance obligations grew 30% to $6.5B.Z-Flex helped large clients increase spending by adding new modules, like AI Protect and Zero Trust Branch. Zscaler Inc.’s (ZS - Free Report) Z-Flex program is emerging as an important growth driver for the company. The offering allows customers to make multi-year commitments while giving them the flexibility to activate or switch products without going through a new purchasing process. This approach is helping Zscaler increase customer spending, improve visibility and strengthen long-term relationships.
The momentum behind Z-Flex accelerated during the third quarter of fiscal 2026. Z-Flex generated more than $480 million in the total contract value (TCV) during the quarter, representing growth of more than 60% sequentially. Over the last 12 months, Zscaler delivered more than $1 billion in Z-Flex TCV with an average contract duration of four years.
The program is also encouraging broader platform adoption. Several large customers expanded their use of existing products while adding new modules, including AI Protect and Zero Trust Branch solutions. During the last earnings call, management revealed that one large financial customer increased annual spending by nearly 50%, while another enterprise customer expanded its spending by 60%.
The strong uptake of Z-Flex is contributing to Zscaler’s overall growth. During the third quarter, annual recurring revenues (ARR) rose 25% year over year to more than $3.5 billion. Remaining performance obligations increased roughly 30% to $6.5 billion, providing strong revenue visibility. Total third-quarter revenues rose 25% year over year to $850.4 million.
Management believes Z-Flex shortens sales cycles, increases upselling opportunities and improves customer retention. As enterprises continue consolidating cybersecurity vendors and adopting broader Zero Trust platforms, Z-Flex could remain a meaningful catalyst for Zscaler’s long-term growth and revenue expansion. The Zacks Consensus Estimate for Zscaler’s fiscal 2026 revenues is pegged at $3.33 billion, indicating 24.6% year-over-year growth.
How Do ZS’ Rivals Compare in Flexible Customer Contracts?Two major cybersecurity companies competing with Zscaler in long-term customer engagements are Palo Alto Networks, Inc. (PANW - Free Report) and CrowdStrike Holdings, Inc. (CRWD - Free Report) .
Palo Alto Networks has successfully pushed its platformization strategy, encouraging customers to consolidate multiple security products under one vendor. In the third quarter of fiscal 2026, the company’s next-generation security ARR jumped 60% year over year to $8.1 billion, reflecting strong customer commitment to multi-product contracts.
Palo Alto Networks’ bundled offerings across network security, cloud security and security operations help improve customer retention and expand spending over time. This strategy shares similarities with Zscaler’s Z-Flex program, which promotes broader platform adoption through multi-year agreements.
CrowdStrike has also benefited from higher customer consolidation trends. The company’s ARR rose 24% year over year to $5.5 billion in the first quarter of fiscal 2027. More customers continue adopting multiple Falcon modules, helping expand contract values and increase retention rates. CrowdStrike’s subscription-based model provides recurring revenue visibility similar to Zscaler’s long-term commitments.
While both competitors, Palo Alto Networks and CrowdStrike, focus on platform expansion, Zscaler’s Z-Flex program offers customers additional flexibility to activate or swap products during contract periods, which strengthens its upselling opportunities and long-term revenue growth.
Zscaler’s Price Performance, Valuation & EstimatesZS shares have plunged 44.8% year to date against the Zacks Security industry’s rise of 43.2%.
Zscaler YTD Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, ZS trades at a forward price-to-sales ratio of 5.22, significantly below the industry’s average of 15.65.
Zscaler Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Zscaler’s fiscal 2026 and 2027 earnings implies year-over-year increases of 25.9% and 10.9%, respectively. Estimates for fiscal 2026 and 2027 have been revised upward over the past 30 days.
Image Source: Zacks Investment Research
Zscaler currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NEW YORK, June 23, 2026 (GLOBE NEWSWIRE) -- 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 [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Zscaler and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On May 26, 2026, Zscaler reported its financial results for the third quarter of its 2026 fiscal year. Although Zscaler’s revenue and earnings exceeded expectations, the Company guided for current-quarter revenue of between $875 million to $878 million, falling short of the $879 million consensus expectation.
On this news, Zscaler’s stock price fell $58.19 per share, or 31.52%, to close at $126.41 per share on May 27, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
LOS ANGELES, June 17, 2026 (GLOBE NEWSWIRE) -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Zscaler, Inc. (“Zscaler” or “the Company”) (NASDAQ: ZS) for violations of the securities laws.
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Zscaler is the subject of a report by CNBC on May 27, 2026, which stated the Company’s shares “tumbled more than 23% after the cloud security company guided for current-quarter revenue of between $875 million to $878 million, falling short of the $879 million analysts were seeking, per LSEG.” Based on this news, shares of Zscaler opened down more than 30% on the same day.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
The Schall Law Firm
Brian Schall, Esq.
310-301-3335 [email protected]
, /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 [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Zscaler and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On May 26, 2026, Zscaler reported its financial results for the third quarter of its 2026 fiscal year. Although Zscaler's revenue and earnings exceeded expectations, the Company guided for current-quarter revenue of between $875 million to $878 million, falling short of the $879 million consensus expectation.
On this news, Zscaler's stock price fell $58.19 per share, or 31.52%, to close at $126.41 per share on May 27, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
Key Takeaways CrowdStrike's Falcon Flex adoption remains strong, but revenue growth has moderated from prior years.ZS is gaining traction with Zero Trust Everywhere, surpassing 700 enterprise customers in Q3 FY26.ZS trades at a much lower sales multiple than CRWD, offering a more attractive valuation. CrowdStrike (CRWD - Free Report) and Zscaler (ZS - Free Report) are both at the forefront of the cybersecurity space, playing key roles in guarding organizations from extensive cyberattacks. While Palo Alto Networks focuses broadly on next-generation firewalls, cloud security and AI-driven threat detection, Zscaler is a leader in zero-trust security and specializes in secure access service edge and cloud security.
Both CRWD and ZS are riding the key industry trends, driven by the mounting incidents of credential theft, remote desktop protocol breaches and social engineering-based strikes by malicious actors. However, from an investment point of view, one stock offers a more favorable outlook than the other right now. Let’s break down their fundamentals, growth prospects, market challenges and valuation to determine which stock offers a more compelling investment case.
The Case for CrowdStrike StockCrowdStrike provides its cybersecurity services mainly through its Falcon platform. CrowdStrike’s Falcon platform is renowned for being the industry’s first multi-tenant, cloud native, intelligent security solution. The Falcon platform helps secure workloads across on-premise, cloud-based and virtualized environments running on several endpoints, such as desktops, laptops, servers, virtual machines and IoT devices.
CrowdStrike’s cloud-based Falcon platform currently provides 33 cloud modules via a software-as-a-service subscription model that is categorized under three categories: Endpoint Security, Security & IT Operations and Threat Intelligence. The share of subscription-based sales to CrowdStrike’s total revenues grew from 72% in fiscal 2017 to 95% in fiscal 2026.
CrowdStrike’s Falcon Flex subscription model is becoming an important driver of its growth. Falcon Flex makes it easier for customers to access multiple modules of the Falcon platform through a single contract. This makes it easier for customers to deploy additional security products over time and expand their use of the Falcon platform, which has now become the company’s primary go-to-market model.
Annual recurring revenue (ARR) from Flex accounts crossed $1.9 billion, growing more than 99% year over year, in the first quarter of fiscal 2027, which shows strong adoption across enterprise customers. In the first quarter of fiscal 2027, CrowdStrike added more than 300 Flex customers and ended the first quarter with over 1,900 customers who have adopted Falcon Flex.
However, CrowdStrike’s recent quarterly reports have shown a deceleration in its growth rate. The company's revenue growth, while still robust, is not as explosive as in previous years. CrowdStrike had enjoyed more than 35% year-over-year top-line growth till fiscal 2024. The growth rate decelerated to 29% in fiscal 2025 and to 22% in fiscal 2026. For fiscal 2027, CrowdStrike expects total revenues to be in the range of $5.915 billion to $5.959 billion. This indicates that the top-line growth is expected to stay around 23% to 24%, which is way lower than the explosive growth enjoyed by the company in the previous years.
The Case for Zscaler StockZscaler is seeing strong adoption of its Zero Trust Everywhere strategy, which is helping the company expand beyond its traditional user security offerings. The strategy combines security for users, cloud workloads and branch locations on a single platform, allowing customers to secure more parts of their IT environment through Zscaler.
The company ended the third quarter of fiscal 2026 with more than 700 Zero Trust Everywhere enterprises, up from more than 550 in the previous quarter. Management stated that customers are increasingly looking for security solutions that protect users, workloads and branches together rather than using separate products. This trend should help Zero Trust Everywhere support the rising adoption of Zscaler’s platform.
The strategy is also helping Zscaler win larger deals. During the third quarter, the company signed the largest branch deal in its history with a healthcare system that is deploying its Zero Trust Branch solution across 2,000 sites. Zscaler also won a seven-figure deal with a healthcare technology company that adopted Zero Trust Cloud, Zero Trust Branch and four data security modules. In another deal, a large automotive manufacturer expanded its use of Zero Trust Cloud to secure its multi-cloud environment.
Management believes demand for Zero Trust Everywhere will continue to increase as enterprises adopt more cloud applications, connected devices and AI technologies. Customers are no longer focused only on securing users. They are also looking to secure workloads, branches and AI environments through a unified platform.
Zscaler views this as an important competitive advantage over traditional firewall-based security vendors. As more customers adopt multiple products across the platform, Zero Trust Everywhere could help the company increase customer spending, win larger deals and support long-term growth.
CRWD vs. ZS: Earnings Estimate TrendThe Zacks Consensus Estimate for CRWD’s fiscal 2027 and 2028 EPS is pegged at $4.93 and $6.24, respectively. The estimates for fiscal 2027 and 2028 have been revised up by 8 cents and 9 cents, respectively, over the past 30 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Zscaler’s fiscal 2026 and 2027 EPS is pinned at $4.13 and $4.58, respectively. The estimates for fiscal 2026 and 2027 have been revised upward by 12 cents and 4 cents, respectively, over the past 30 days.
Image Source: Zacks Investment Research
CRWD vs. ZS: Price Performance and ValuationYear to date, shares of CRWD have surged 46.1%, while ZS shares have plunged 44.5%.
CRWD Vs. ZS: YTD Price Return Performance
Image Source: Zacks Investment Research
Currently, ZS is trading at a forward sales multiple of 5.26X, significantly lower than CRWD’s forward sales multiple of 27.08X. ZS’ reasonable valuation makes it more attractive for investors looking for value and stability.
CRWD vs. ZS: Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
Conclusion: ZS Has an Edge Over CRWDBoth CrowdStrike and Zscaler are key players in the cybersecurity space, but CrowdStrike is witnessing a slowdown in its sales growth. In contrast, Zscaler shows steadier execution, where the company is witnessing strong adoption of its security products. Further, ZS’s reasonable valuation offers some downside protection as well, giving ZS a clear edge over CRWD for investors seeking exposure to cybersecurity growth at a fair price.
Currently, Zscaler carries a Zacks Rank #3 (Hold), giving the stock a clear edge compared to CrowdStrike, which has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zscaler (ZS - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this cloud-based information security provider have returned -32%, compared to the Zacks S&P 500 composite's +0.1% change. During this period, the Zacks Security industry, which Zscaler falls in, has gained 4.5%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Zscaler is expected to post earnings of $1.08 per share, indicating a change of +21.4% from the year-ago quarter. The Zacks Consensus Estimate has changed +531.3% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $4.13 points to a change of +25.9% from the prior year. Over the last 30 days, this estimate has changed +436.5%.
For the next fiscal year, the consensus earnings estimate of $4.58 indicates a change of +10.9% from what Zscaler is expected to report a year ago. Over the past month, the estimate has changed +0.8%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Zscaler.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Zscaler, the consensus sales estimate of $877.19 million for the current quarter points to a year-over-year change of +22%. The $3.33 billion and $3.9 billion estimates for the current and next fiscal years indicate changes of +24.6% and +17.2%, respectively.
Last Reported Results and Surprise HistoryZscaler reported revenues of $850.47 million in the last reported quarter, representing a year-over-year change of +25.4%. EPS of $1.08 for the same period compares with $0.84 a year ago.
Compared to the Zacks Consensus Estimate of $834.76 million, the reported revenues represent a surprise of +1.88%. The EPS surprise was +8%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Zscaler is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Zscaler. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
NEW YORK, June 16, 2026 (GLOBE NEWSWIRE) -- 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 [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Zscaler and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On May 26, 2026, Zscaler reported its financial results for the third quarter of its 2026 fiscal year. Although Zscaler’s revenue and earnings exceeded expectations, the Company guided for current-quarter revenue of between $875 million to $878 million, falling short of the $879 million consensus expectation.
On this news, Zscaler’s stock price fell $58.19 per share, or 31.52%, to close at $126.41 per share on May 27, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
SANTA CLARA, Calif., June 15, 2026 (GLOBE NEWSWIRE) -- Gigamon, a leading deep observability company, today announced a new integration with Zscaler, Inc. that combines Zscaler Private Access™ (ZPA™) with Gigamon Application Metadata Intelligence (AMI), part of the Gigamon Deep Observability Pipeline, to extend visibility into application activity across Zero Trust and hybrid cloud environments.
As organizations replace legacy VPNs with Zero Trust Network Access (ZTNA), security teams need deeper visibility into user-to-application behavior while maintaining visibility across their underlying hybrid cloud infrastructure. The joint solution combines identity- and context-aware access controls from ZPA with high-fidelity application metadata and network-derived telemetry from Gigamon to help security and operations teams accelerate investigations, validate policy, and improve threat detection.
According to the 2026 Hybrid Cloud Security Survey of more than 1,000 Security and IT leaders, 45 percent identified visibility as their top security challenge despite continued investments in security tooling, underscoring the difficulty organizations face in securing increasingly complex hybrid cloud environments.
ZPA enables secure access to private applications based on business policies, without placing users directly on the corporate network, helping organizations replace legacy VPNs with a more secure, identity-based approach. Gigamon AMI extends visibility into application activity by extracting and enriching nearly 6,000 metadata attributes from network traffic, including application behavior indicators, DNS queries, SSL certificate details, and latency telemetry. By capturing East-West traffic forwarded from Zscaler App Connector to private applications, Gigamon complements ZPA with additional, in-depth network-derived telemetry, helping organizations reduce blind spots for downstream monitoring and analytics tools.
By bridging ZPA’s identity-centric access with application metadata and network-derived telemetry from Gigamon, organizations gain richer context across hybrid cloud environments, correlating the “who” and “where” of user access with the “how” and “what” of their activity to reduce risk and streamline incident response.
“Zero Trust access determines who can connect to an application. Deep observability helps organizations understand what happens after access is granted,” said Srinivas Chakravarty, vice president, cloud ecosystem at Gigamon. “By combining Zscaler Private Access with Gigamon AMI, customers can detect lateral movement faster, validate policy, and give security teams the application-level context needed to accelerate investigations.”
“Organizations are adopting Zero Trust architectures to securely connect users to private applications from anywhere, without exposing the apps to the internet,” said Satish Madiraju, vice president, product management at Zscaler. “By integrating ZPA with Gigamon AMI, customers can gain deeper visibility into application activity and user behavior after access is granted, helping security teams strengthen Zero Trust operations, accelerate investigations, and detect lateral movement faster.”
Key Benefits of the Joint Solution
Validation of Zero Trust Policy Enforcement
Observe East-West communication between workloads and applications to identify suspicious activity, unauthorized communication, and potential lateral movement after Zero Trust access has been granted.Richer Context for Security Investigations
Enrich ZPA access data with application metadata and network-derived telemetry to accelerate investigations across SIEM, NDR, and SOC tools and workflows.Improved Zero Trust Visibility and Operations
Validate least-privilege policies, extend visibility beyond encrypted tunnels, and isolate performance issues across users, applications, and hybrid cloud infrastructure. Availability
The integration is available now in limited access for joint Gigamon and Zscaler customers.
About Gigamon
Gigamon® protects the hybrid cloud networks and data of the world’s most complex organizations. The AI-powered Gigamon Deep Observability Pipeline delivers complete visibility into all data in motion by providing trusted, network-derived telemetry directly to cloud, security, and observability tools. With AI-driven insights across packets, flows, and application metadata, organizations can detect threats concealed in encrypted and lateral traffic, resolve network and application performance bottlenecks, and validate compliance while reducing cost and complexity. Gigamon is trusted by over 4,000 organizations worldwide, including 83 of the Fortune 100, major mobile network operators, and public sector agencies at every level. Learn more at gigamon.com.
Srinivas Chakravarty, VP of Cloud Ecosystem at Gigamon, on Zscaler partnership By combining Zscaler Private Access with Gigamon AMI, customers can detect lateral movement faster, ...
Ann Berry is joined by Kevin Rubin, CFO of Zscaler, to discuss how the company's zero trust model protects nearly half of the Fortune 500, what frontier AI models revealed about cybersecurity vulnerabilities and whether the software selloff is missing the bigger picture. 00:00 Kevin Rubin, CFO of Zscaler, Joins 01:19 What Zscaler does: zero trust cybersecurity explained 02:08 Castle and moat vs.
Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Significant Losses In Zscaler To Contact Him Directly To Discuss Their Options
If you suffered significant losses in Zscaler stock or options and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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NEW YORK, June 13, 2026 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Zscaler, Inc. (“Zscaler” or the “Company”) (NASDAQ: ZS).
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
On May 27, 2026, the Company issued weaker-than-expected guidance and disclosed disruptions tied to sales leadership changes, despite reporting quarterly results that exceeded analyst expectations. Reports indicated that investors were concerned about slowing growth projections, weaker customer expansion, and uncertainty surrounding the Company’s sales execution and outlook. Following this news, Zscaler’s stock suffered its steepest single-day decline since going public.
On this news, Zscaler’s stock price fell $58.19, or 31.52% to close at $126.41 per share on May 27, 2026.
To learn more about the Zscaler investigation, go to www.faruqilaw.com/ZS or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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Frequently Asked Questions (FAQ) for Investors Regarding the Zscaler Securities Investigation:
What is the Zscaler securities investigation about?
The investigation concerns whether Zscaler misled investors regarding its growth outlook, sales execution, customer expansion trends, and the impact of sales leadership changes before issuing weaker-than-expected guidance.
Who may be eligible to participate in the investigation?
Investors who purchased Zscaler (NASDAQ: ZS) stock or options and suffered losses, particularly following the May 27, 2026 stock decline, may have legal rights and should evaluate their options.
What is a lead plaintiff, and how can I seek appointment?
If a securities class action is filed, a lead plaintiff represents the interests of other investors and helps oversee the litigation. Eligible investors may seek appointment by filing a motion before any court-imposed deadline.
Why should investors contact Faruqi & Faruqi, LLP?
Faruqi & Faruqi, LLP has represented investors in securities litigation for decades and has recovered hundreds of millions of dollars for shareholders. Investors who purchased Zscaler securities may contact the firm to discuss their legal rights and potential claims at no cost or obligation.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/7f60c456-51b6-4096-a862-d5d3beda6cc5
Key Takeaways Zscaler raised fiscal 2026 guidance after Q3 results topped consensus estimates on revenue and earnings.ZS is expanding AI, Zero Trust and security offerings while adding capabilities through acquisitions.Palantir added AI partnerships and customer wins as triple-digit U.S. revenue growth reflected demand. Markets are under pressure even as the headlines appear overwhelmingly positive. Going by the U.S. Bureau of Labor Statistics, the stronger-than-expected May jobs report shows an improving picture in the U.S. labor market, with payroll growth of 172,000 and the unemployment rate holding steady at 4.3%. However, what would normally be viewed as a positive development for the economy has also reduced expectations for near-term Federal Reserve rate cuts.
More specifically, inflation is currently above the Federal Reserve's long-term target. Consumer prices were running at an annual rate of 3.8% in April, nearly double the Fed's 2% objective, showing persistent price pressures across the economy.
In such circumstances, the market's reaction reflects a shift in focus from economic growth to monetary policy. A resilient labor market suggests that consumer spending and overall economic activity remain healthy. At the same time, it raises concerns that inflationary pressures could prove more persistent than policymakers had hoped. If inflation remains above the Federal Reserve's target, the central bank may have less urgency to ease policy.
As a result, investors have been reassessing the "higher-for-longer" interest-rate scenario. The Federal Reserve left its benchmark federal funds rate unchanged at a target range of 3.50%-3.75% at its most recent meeting, maintaining a restrictive policy stance as policymakers monitor inflation risks.
Why Quality Growth Stocks Stand OutThis shift has created a challenging backdrop for highly valued and speculative growth stocks, particularly those whose valuations depend heavily on distant future earnings. As Treasury yields move higher and expectations for monetary easing are pushed out, investors have become increasingly selective.
In this environment, capital is gravitating toward companies that combine growth with strong fundamentals. Businesses with durable earnings growth, healthy balance sheets and consistent cash flow generation are generally better positioned to navigate market volatility than companies whose valuations rely primarily on future promises.
Here are two stocks from two of 2026's fastest-growing sectors that investors may want to consider as markets adapt to a higher-for-longer interest-rate environment.
Zscaler: Benefiting From the Shift to AI-Driven CybersecurityCybersecurity remains one of the most resilient areas of enterprise technology spending in 2026 and Zscaler (ZS - Free Report) is well-positioned to capitalize on that trend. ZS recently reported fiscal 2026 third-quarter results that topped the Zacks Consensus Estimate on both fronts. Management also raised its fiscal 2026 guidance, reflecting healthy customer demand and continued momentum across its Zero Trust security platform.
Zscaler is benefiting from rising demand for zero trust security as enterprises expand cloud, hybrid work and AI initiatives. The company continues to broaden its platform through metered usage offerings, AI-focused controls and the Z-Flex program, which supports larger multi-year commitments and improves revenue visibility. Portfolio expansion through acquisitions with the likes of SquareX, SPLX and Red Canary adds capabilities in security operations, browser security and AI security and governance capabilities.
This Zacks Rank #2 (Buy) stock is expected to report fiscal 2026 earnings growth of 23.2% on revenue growth of 24.5%. Based on short-term price targets offered by 42 analysts, the average price target represents an increase of 47.9% from Zscaler’s last closing price of $130.78.
Image Source: Zacks Investment Research
Palantir: Turning AI Adoption Into Real RevenuesPalantir (PLTR - Free Report) continues to emerge as one of the biggest beneficiaries of enterprise and government AI adoption. The company recently expanded its commercial AI ecosystem through new partnerships announced at AIPCon 10, including a collaboration with Google Cloud that integrates Google's Gemini models into Palantir's platform. Management also announced new customer wins across legal, construction and insurance markets, further broadening its commercial footprint.
Beyond the commercial market, Palantir remains deeply entrenched in government AI initiatives. The company continues to benefit from large public-sector contracts, including a recently awarded $1 billion Department of Homeland Security agreement and ongoing expansion of AI-driven decision platforms across government agencies. Palantir reported triple-digit U.S. revenue growth in its latest quarter, demonstrating that AI demand is translating into tangible business results rather than speculative future opportunities.
This Zacks Rank #2 stock is expected to report 2026 earnings growth of 98.7% on revenue growth of 78.7%. Based on short-term price targets offered by 26 analysts, the average price target represents an increase of 43.7% from Zscaler’s last closing price of $135.53. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
, /PRNewswire/ -- The Gross Law Firm issues the following notice to shareholders of Zscaler, Inc. (NASDAQ: ZS).
Shareholders who purchased shares of ZS during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery.
ALLEGATIONS: The complaint alleges that during the class period, Defendants issued materially false and/or misleading statements and/or failed to disclose that: Zscaler reported Q3 revenue of $850 million, up 25% year-over-year, and ARR of $3.5 billion. However, the company's Q4 outlook came in below analyst expectations, and management simultaneously disclosed reduced cash-flow-margin projections for the remainder of fiscal 2026. Alongside the guidance, Zscaler disclosed the departure of senior sales executives. Several major Wall Street analysts downgraded the stock the following morning, and trading volume surged to three to four times the 30-day average. The cybersecurity sector was broadly rallying during the same period, making ZS's decline stand out against its peer group.
DEADLINE: January 1, 2999 Shareholders should not delay in registering for this class action. Register your information here: https://securitiesclasslaw.com/securities/zscaler-inc-loss-submission-form/?id=187548&from=4
NEXT STEPS FOR SHAREHOLDERS: Once you register as a shareholder who purchased shares of ZS during the timeframe listed above, you will be enrolled in a portfolio monitoring software to provide you with status updates throughout the lifecycle of the case. The deadline to seek to be a lead plaintiff is January 1, 2999. There is no cost or obligation to you to participate in this case.
WHY GROSS LAW FIRM? The Gross Law Firm is a nationally recognized class action law firm, and our mission is to protect the rights of all investors who have suffered as a result of deceit, fraud, and illegal business practices. The Gross Law Firm is committed to ensuring that companies adhere to responsible business practices and engage in good corporate citizenship. The firm seeks recovery on behalf of investors who incurred losses when false and/or misleading statements or the omission of material information by a company lead to artificial inflation of the company's stock. Attorney advertising. Prior results do not guarantee similar outcomes.
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LAS VEGAS, June 09, 2026 (GLOBE NEWSWIRE) -- Zenith Live 2026 -- Zscaler, Inc. (NASDAQ: ZS), the cybersecurity platform for the AI era, today announced major innovations to extend the Zscaler Zero Trust Exchange™ platform to secure AI Agents–how they connect, access data, and run on devices. With these innovations, Zscaler is delivering the industry’s first complete Zero Trust platform for Agentic AI.
Today, enterprise security is undergoing a shift from human users to autonomous agents. Traditional security tools were designed around known human identities and predictable access patterns. Autonomous AI agents change that model. They operate on a user’s behalf as well as autonomously and at machine speed, creating ephemeral identities, spawning sub-agents and tasks, and exercising permissions in ways that traditional security tools cannot fully see or control. While they can deliver significant efficiency gains, AI agents also introduce new gaps in visibility, access, and governance, obscuring agent risk and making data flows difficult to track at scale. As AI becomes more deeply embedded in software development, endpoints are also increasingly exposed to malicious agents, tools, and plugins that many legacy endpoint security solutions were not designed to detect.
To help companies adopt agentic AI more securely, Zscaler is introducing the next evolution of its Zero Trust Exchange with new solutions that expand protections across the AI ecosystem – helping organizations put agentic AI to work with stronger security and greater confidence. These include two key advances:
Zscaler AI Broker helps secure agentic communications through MCP and A2A brokers. With an integrated Agent Registry, it helps organizations understand what each agent is allowed to access and apply fine-grained access across enterprise AI agents.Zscaler Endpoint AI Security helps customers find and stop AI-related threats on employee devices, including risks hidden in browsers, plugins, extensions, and local AI tools. This capability reaches into the browser, extension, and plugin layers that traditional endpoint security tools miss. Now Zscaler can enforce policies to secure AI everywhere including endpoint and cloud. Introducing Zscaler AI Access Graph: Connecting the dots of Data and Identity lineage with AI for enhanced security and governance of Agentic AI
An important element of agentic security is understanding which agents, users, and identities are communicating with which models, applications, and data sources. Powered by Zscaler's recent acquisition of Symmetry Systems, Zscaler AI Access Graph maps how identities, applications, and other data sources connect across the enterprise. The integration of this technology with Zscaler’s Zero Trust Exchange enables organizations to understand and then enforce policies, reduce unnecessary access and risk, and track data lineage in real-time across every channel.
Building on Zscaler AI Protect launched in January 2026, Zscaler is also delivering major new enhancements across AI Protect's three core use cases:
AI Asset Management (visibility into AI assets, usage, and risk) gains new capabilities to discover embedded AI in SaaS and internet traffic, identify AI agents and MCP servers in public cloud environments, uncover risks in agentic codebases through code scanning, and extend visibility to AI activity on endpoints.Secure Access to AI (safe, governed access to sanctioned AI tools) expands controls for AI interactions with prompt extraction across more than 250 GenAI apps and adds full conversational views, support for Anthropic and OpenAI Compliance APIs, and intent-based guardrails for multi-turn conversations.Secure AI Infrastructure and Apps (protection for AI apps across the development and runtime lifecycle) introduces AI red teaming for MCP servers, a standalone prompt hardening service, and compliance heat maps to strengthen AI governance.
“Traditional security was never designed for millions of autonomous agents that act and reach sensitive data at machine speed,” said Jay Chaudhry, Chairman and CEO of Zscaler. “We pioneered Zero Trust Exchange to secure users, branches and cloud workloads and now we are innovating to extend the Zero Trust security to AI Agents. Now Enterprises are not held back from rolling out agents everywhere.”
“Managing data security is no longer just about building high walls; it is about scaling visibility and treating data as a highly active, strategic asset,” said John Israel, Global CISO at KPMG, who joined Zscaler as a guest speaker to discuss the launch. “As businesses scale their use of AI agents to optimize operations, having a unified, zero-trust framework to trace data lineage and govern agent-to-agent interactions is paramount to maintaining trust, compliance, and competitive advantage.”
Together, these innovations deliver a comprehensive framework for securing agentic AI – built on Zscaler’s Zero Trust Exchange platform to protect enterprises today and into the future. By safeguarding agents with comprehensive security controls, organizations can now accelerate their AI adoption with confidence.
For more information on the latest Zenith Live announcements, please visit: http://www.zscaler.com/events/zenithlive2026
About Zscaler
Zscaler (NASDAQ: ZS) is a pioneer and global leader in zero trust security. The world’s largest businesses, critical infrastructure organizations, and government agencies rely on Zscaler to secure users, branches, applications, data & devices, and to accelerate digital transformation initiatives. Distributed across 160+ data centers globally, the Zscaler Zero Trust Exchange™ platform combined with advanced AI combats billions of cyber threats and policy violations every day and unlocks productivity gains for modern enterprises by reducing costs and complexity.
Forward-Looking Statements
This press release contains forward-looking statements that are based on our management's beliefs and assumptions and on information currently available to our management. These forward-looking statements include the expected development, integration, adoption, performance and benefits of Zscaler’s new AI Security Platform offerings and Zscaler AI Protect enhancements. These forward-looking statements are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. A significant number of factors could cause actual results to differ materially from statements made in this press release, including those factors related to Zscaler’s ability to develop, deliver and achieve customer adoption of these AI security solutions and platform enhancements. Additional risks and uncertainties are set forth in our most recent Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (“SEC”) on May 26, 2026, which is available on our website at ir.zscaler.com and on the SEC's website at www.sec.gov. Any forward-looking statements in this release are based on the limited information currently available to Zscaler as of the date hereof, which is subject to change, and Zscaler will not necessarily update the information, even if new information becomes available in the future.
Media Contact
Nick Gonzalez, Director of Global Public Relations, [email protected]
LAS VEGAS, June 09, 2026 (GLOBE NEWSWIRE) -- Zenith Live 2026- Zscaler, Inc. (NASDAQ: ZS), the cybersecurity platform for the AI era, today announced the next phase of its Project AI-Guardian by expanding the initiative to include technology alliance partners. The expansion broadens the ecosystem collaboration first built with the world’s leading global system integrators (GSIs), deepening interoperability across the Zscaler Zero Trust Exchange™ platform and the Company's AI Protect portfolio with complementary partner technologies.
As enterprises adopt generative AI, agentic workflows, and AI-enabled SaaS, no single vendor secures the entire AI estate on its own. Security teams are left stitching together point products that don't share context, leaving blind spots across the rapidly expanding AI attack surface. What organizations need is not another silo, but a comprehensive AI security platform that interoperates with leading and existing technologies to share signals, identity context, and enforcement work.
The expansion of Project AI-Guardian is built around that principle. Through the Zero Trust Exchange, core Zscaler AI services will integrate directly with technology alliance partners. The integration includes the AI Access Graph, which continuously maps how identities, applications, agents, and data connect to AI services; AI attack surface and risk modeling, which discovers and quantifies AI-related exposure across the environment; and additional governance and protection capabilities. Partners both enrich and act on these signals, so insight gathered in one platform can drive enforcement in another.
Because every interaction is brokered through the Zero Trust Exchange, enforcement happens inline and in real time. Access is verified continuously, data is inspected as it moves, and zero trust policy is applied to AI usage the same way Zscaler applies zero trust to users, workloads, and devices today. For customers, interoperability means a consistent control plane for AI without the integration burden of connecting disparate tools. For partners, it means a platform-native path to extend their capabilities across the enterprise AI estate.
Technology alliance partners include: AWS, CoreWeave, Databricks, Deep Cogito, Equinix, Glean, Google Cloud, OpenAI, Saviynt, along with additional GSI Partners Coforge and NTT DATA. These partners join the founding GSI partners (Cognizant, EY, HCLTech, Infosys, TCS, and Wipro) to deliver a comprehensive, end-to-end framework for securing AI.
“AI is creating enormous opportunities for organizations, but it is also reshaping the threat across the security and governance landscape,” said Dhawal Sharma, EVP- AI Security and Strategic Initiatives, Zscaler. “Securing AI is an ecosystem effort. With the expansion of Project AI-Guardian through our technology alliance partners, Zscaler is helping customers extend zero trust across enterprise AI interactions so they can adopt AI faster while maintaining the visibility, control, and data protection they need to innovate securely.”
Through this expanded initiative, Zscaler and its technology alliance partners will deliver deep integrations across the entire AI pipeline, addressing critical security needs:
Zero Trust Controls for AI Workflows: Enforcing granular policy controls for AI applications, development infrastructures, and workflows designed to prevent unauthorized access and usage.Comprehensive Data Protection: Helping prevent the leakage of sensitive intellectual property or customer data through prompts, model training inputs, or autonomous AI-to-AI interactions, both inline and out-of-band.Continuous Visibility and Governance: Delivering a 360-degree view of the organization's AI footprint—including shadow AI apps, model APIs, and cloud-hosted infrastructure—to help ensure alignment with compliance and risk management frameworks.Streamlined Deployment and Time-to-Value: Providing pre-validated, interoperable partner integrations that simplify deployment and allow security teams to safely accelerate business transformation. This next phase of Project AI-Guardian reflects Zscaler’s vision for secure AI transformation: an open, security-first framework that helps enterprises unlock the value of AI with confidence.
Coforge
“As enterprises accelerate their AI transformation journey and deploy agentic systems at scale, the urgency to secure AI assets from edge to cloud has never been greater. Through Project AI-Guardian, Coforge is uniting Zscaler's AI Asset Management and Zero Trust Everywhere with our Secure Edge2Cloud Solution and Trust AI platform. The combination embeds automated governance, privacy guardrails, and continuous assurance directly into the AI lifecycle — enabling enterprises to discover, secure, and scale their AI deployments without compromising on trust or business velocity,” Ashish Kumar, SVP & Global Head - Cloud, AI-Infra & Security, Coforge.
CoreWeave
“As enterprises move AI into production, the attack surface expands at the infrastructure level, beyond just the application layer, said Jim Higgins, Chief Information Security Officer, CoreWeave. “CoreWeave's security is built from the silicon up, and working with Zscaler through Project AI-Guardian means customers will be able to enforce zero trust access controls at every layer of their AI stack, from compute to agent interaction.”
Databricks
“Customers consistently tell us they want to route their security data to their Databricks environment and extend their existing security vendor protections to our platform. Our partnership with Zscaler delivers on both fronts. By ingesting Zscaler logs into Databricks and collaborating on Project AI-Guardian, we are helping joint customers safely accelerate their AI initiatives without creating new security silos,” Stephen Orban, SVP Product Partnerships & Ecosystem.
Deep Cogito
“Defending against frontier-grade threats requires specialized intelligence models, post-trained on a security team's data and outcomes. Zscaler understood this from the start - going beyond lightweight customization to build specialized intelligence into the model itself,” said Drishan Arora, Co-founder and CEO Deep Cogito. “Through Project AI Guardian, we're extending that work to help enterprises adopt AI with the security posture this moment demands.”
Equinix
“Equinix is committed to enabling secure, scalable AI innovation across the enterprise,” said Maryam Zand, Vice President of Partnerships and Ecosystem Strategy at Equinix. “Our longstanding partnership with Zscaler makes that vision even more powerful, by combining global digital infrastructure with zero trust security to help customers protect their AI interactions. Together, we’re giving our joint customers the security controls and infrastructure they need to deploy AI workloads with confidence, at scale.”
Glean
“Scaling enterprise AI safely requires both trusted business context and a security ecosystem that can govern how that context is accessed and used,” said Sunil Agrawal, CISO, Glean. “Glean helps organizations bring secure, permissions-aware enterprise knowledge directly into AI workflows, and Zscaler’s Project AI-Guardian provides an important framework for extending visibility, control, and protection across those interactions. Together, we’re helping customers move AI from experimentation to impact while giving security teams greater confidence as adoption scales.”
NTT DATA
“As organizations enter the AI execution era, driving a new wave of autonomous enterprise transformation, security must evolve just as rapidly. By collaborating with Zscaler on Project AI Guardian, NTT DATA is combining Zscaler's Zero Trust Everywhere framework with our full-stack Security for AI capabilities to help enterprises prepare for frontier AI risks and accelerate their agentic AI-driven transformation with confidence, resilience and speed,” Sheetal Mehta, Global Head of Cybersecurity at NTT DATA, Inc.
OpenAI
“As AI becomes an increasingly important tool for cybersecurity, organizations need systems that are not only capable, but secure, reliable, and aligned with the realities of enterprise risk management. Through our partnership with Zscaler and initiatives like Trusted Access for Cyber and Project AI-Guardian, we're advancing a shared commitment to deploying AI responsibly—combining frontier capabilities with rigorous safeguards, transparency, and human oversight. Together, we're helping security teams strengthen their defenses while building confidence in the safe adoption of AI across the enterprise,” Scott Rosecrans, Vice President, Strategic Pursuits, OpenAI.
Saviynt
“AI security is an identity problem first. Zscaler stops threats in motion; Saviynt governs the identities behind them. Together, we give enterprises the control plane they need to adopt AI without losing visibility or governance,” Vibhuti Sinha, Chief Product Officer, Saviynt.
For more information on the latest Zenith Live announcements please visit: http://www.zscaler.com/events/zenithlive2026
About Zscaler
Zscaler (NASDAQ: ZS) is a pioneer and global leader in zero trust security. The world’s largest businesses, critical infrastructure organizations, and government agencies rely on Zscaler to secure users, branches, applications, data & devices, and to accelerate digital transformation initiatives. Distributed across 160+ data centers globally, the Zscaler Zero Trust Exchange™ platform combined with advanced AI combats billions of cyber threats and policy violations every day and unlocks productivity gains for modern enterprises by reducing costs and complexity.
Forward-Looking Statements
This press release contains forward-looking statements that are based on our management's beliefs and assumptions and on information currently available to our management. These forward-looking statements include the expected performance and benefits of Project AI-Guardian and Zscaler's Technology Alliance Partners, including delivering zero trust controls across enterprise AI workflows. These forward-looking statements are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. A significant number of factors could cause actual results to differ materially from statements made in this press release, including those factors related to Zscaler’s ability to achieve partner and customer adoption of Project AI-Guardian and initiatives with Zscaler’s Technology Alliance Partners. Additional risks and uncertainties are set forth in our most recent Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (“SEC”) on May 26, 2026, which is available on our website at ir.zscaler.com and on the SEC's website at www.sec.gov. Any forward-looking statements in this release are based on the limited information currently available to Zscaler as of the date hereof, which is subject to change, and Zscaler will not necessarily update the information, even if new information becomes available in the future.
Media Contact
Nick Gonzalez, Director of Global Public Relations, [email protected]
LOS ANGELES, June 09, 2026 (GLOBE NEWSWIRE) -- Saviynt, the leader in identity security for AI, today announced an expanded partnership with Zscaler, the cybersecurity platform for the AI era, to help enterprises strengthen Zero Trust architectures by aligning identity-driven decisions with real-time enforcement. In addition, Zscaler Ventures has participated in Saviynt’s recent Series B funding round alongside KKR, Carrick Capital Partners, Ten Eleven and Sixth Street Growth, to support joint innovation as Identity Security becomes pivotal in securing enterprises in the AI era.
As organizations adopt Zero Trust principles, identity becomes the control plane for determining who or what should have access, while enforcement ensures that those decisions are continuously applied. Saviynt and Zscaler close this gap between governance and enforcement. The companies' combined capabilities help customers reduce risk, simplify operations, and secure least-privileged access across users, applications, and infrastructure in increasingly complex cloud, AI, and distributed work environments.
The initial integration focuses on eliminating standing privileges through just-in-time (JIT) access. This addresses enterprises still reliant on fragmented access models tickets, VPNs, group memberships, and persistent credentials that extend privileges beyond their intended use. Saviynt governs identity, validates access requests, and provisions time-bound entitlements, while Zscaler enforces those decisions inline at session initiation through the Zscaler Zero Trust Exchange™ platform.
“Zero Trust strategy is ultimately driven by the quality of identity decisions and how rigorously they are enforced,” said Anirudh Sen, SVP of Products at Saviynt. “With Zscaler, we’re helping customers move to a model where access is continuously verified, context-aware, and designed to expire. This marks an important step in delivering a Zero Trust approach to Identity Security.”
Through the expanded partnership, organizations can:
Eliminate standing privilege through just-in-time access that is approved, policy validated, and automatically revokedGovern third-party access with stronger onboarding, delegated controls, and built-in expirationEnforce identity-aware access policies inline at session start, ensuring access is current and justifiedCapture end-to-end visibility across the privileged access lifecycle for audit and compliance “Zscaler and Saviynt help organizations accelerate Zero Trust adoption by bringing identity governance and inline enforcement together,” said Joby Menon, SVP of Product Management at Zscaler. “By combining them, we enable organizations to reduce standing privilege, improve visibility across the access lifecycle, and better protect users, applications, and data.”
The companies intend to expand integration across additional use cases and broader AI and infrastructure access scenarios. The partnership unites Saviynt’s identity management with Zscaler’s security platform, grounding access decisions in identity while enforcing continuous, context-aware protection across the enterprise.
Saviynt also joined Zscaler’s Project AI-Guardian as a Technology Alliance Partner to help deliver a comprehensive, end-to-end framework for securing AI.
The companies will showcase the latest solution this week at Zenith Live in Las Vegas. To learn more about how Saviynt helps organizations secure identities across human and AI-driven environments, visit www.saviynt.com.
About Saviynt
Saviynt's identity platform manages and governs human, non-human, and AI access to all of an organization's applications, data, and business processes. Saviynt delivers enterprise control over AI, enabling organizations to safely accelerate their deployment and usage of AI now. Customers trust Saviynt to safeguard their digital assets, drive operational efficiency, and reduce compliance costs. Saviynt is recognized as the leader in identity security, with solutions that protect and empower the world’s leading brands, Fortune 500 companies, and government institutions. For more information, please visit www.saviynt.com.
Zscaler (NASDAQ: ZS | ZS Price Prediction) founder and CEO Jay Chaudhry used the company’s latest earnings call to sharpen a thesis becoming the bull case for cybersecurity: autonomous AI agents will soon outnumber human users on corporate networks, and each needs security. On a recent Motley Fool Money segment titled The Invisible Layer Protecting the World’s Biggest Companies, the host framed it directly: “Today we protect more than 50 million users, and tomorrow that could be millions or billions of agents that are doing work on behalf of organizations.”
Chaudhry tightened the timeline during the Q3 FY2026 call. “We expect it will not be long before millions of AI agents have access to organizations’ mission-critical applications and sensitive data,” he said. “Today, users are the weakest link in cybersecurity. But soon, AI agents will be the weakest link, because they operate at far greater speed and have far less oversight. Even a single compromised agent can move to data theft in minutes.”
Why the “billions of agents” framing matters now Zscaler reported fiscal Q3 results on May 26, 2026, posting revenue of $850.48 million, up 25.43% year over year, with non-GAAP EPS of $1.08, the company’s ninth consecutive EPS beat. Annual recurring revenue reached $3.525 billion on 25% growth, and management raised full-year FY2026 EPS guidance to $4.10 to $4.11.
The market reaction was harsh. ZS opened at $182.73 at filing and trades around $129.52 today, down 41.85% year to date. The sticking point was the reduced free cash flow margin outlook of 22.8% to 23.3%, down from 26.5% to 27%, as capex rises to support the AI buildout.
The architecture behind the pitch Zscaler’s argument rests on two ideas for non-human identities: hide applications so attackers cannot find them, and eliminate lateral movement once inside. To extend that to agents, Zscaler announced its intent to acquire Symmetry Systems on May 21st, whose access graph maps how identities, applications, and data sources connect across the enterprise. Chaudhry confirmed the company’s Project Glasswing partnership with Anthropic and DayBreak partnership with OpenAI, giving Zscaler engineers early access to frontier models discovering vulnerabilities at machine speed.
That is the threat side of the thesis. “Frontier models are multiplying these unremediated vulnerabilities by as much as 10x,” Chaudhry said. Customer urgency shows in bookings: Zscaler’s AI Protect product crossed $100 million in bookings over the past 12 months, and Zero Trust Everywhere customer count grew to 700+ enterprises from 550+ in Q2.
How Palo Alto Networks fits the same story Palo Alto Networks (NASDAQ: PANW) reported one week later and validated the demand signal from the other side of the platform debate. Q3 FY2026 revenue rose 31.15% to $3.00 billion, and next-generation security ARR jumped 60% year over year to $8.10 billion. CEO Nikesh Arora attributed the acceleration to “accelerating organic bookings growth as customers turn to us to secure their AI deployments at scale.”
PANW is up 47.69% year to date, a striking divergence given that both CEOs tell the same story about agentic AI demand. Investors rewarded Palo Alto’s platformization push, including CyberArk and Chronosphere acquisitions that contributed $388 million to the quarter, while penalizing Zscaler’s heavier near-term capex profile.
What to watch next Chaudhry pushed the agent opportunity timeline past Q4. “We are not factoring in any meaningful impact of these new opportunities for Q4, but I do believe we will have an impact in fiscal 27,” he said. CFO Kevin Rubin offered a preliminary FY27 ARR and revenue growth outlook of 16% to 17%, a deceleration that the “billions of agents” narrative must reverse. The Symmetry Systems close, AI Protect bookings cadence, and monetization tied to OpenAI and Anthropic integrations are markers worth tracking through the back half of calendar 2026.
LAS VEGAS, June 10, 2026 (GLOBE NEWSWIRE) -- Zenith Live 2026 -- Zscaler, Inc. (NASDAQ: ZS), the cybersecurity platform for the AI era, today announced a significant expansion of the Zscaler Zero Trust SASE solution with the introduction of its ZAgent Framework and additional innovations designed to secure every communication, from browser to workload, on one cloud-native architecture.
Work now happens on unmanaged devices, across supply chains — and AI-driven attacks move faster than teams can defend against them. Legacy SASE, built on firewalls and VPNs, was never designed for any of this. It exposes applications to the internet, enables lateral movement, and legacy management consoles create an administration nightmare.
Scaling to Secure More Than 750 Billion Daily Transactions
Zscaler is the world’s largest inline security cloud, which now secures more than 750 billion daily transactions to protect the modern enterprise. The volume of real-time intelligence serves as the ultimate training ground for the Zscaler Zero Trust Exchange™ platform and AI engine, resulting in a stronger, more resilient Zero Trust SASE solution.
Zscaler’s new innovations unveiled today simplify SASE operations and extend Zero Trust SASE everywhere:
Agentic AI Operations for Simplified SASE Management
ZAgent Framework: Orchestrates Zscaler agents from across the Zero Trust SASE platform to automate and simplify administration, including faster configuration and troubleshooting. Administrators engage with ZAgent through a simple and familiar natural language prompt in the Zscaler Experience Center.Zscaler Digital Experience™ (ZDX™) Agent: The ZDX agent is one of many ZAgents, enabling administrators to quickly diagnose the root cause of end-user experience issues (such as Wi-Fi, ISP, or device) and remediate them, before they escalate. A Unified Zero Trust SASE Platform that Secures Users and Supply Chains Everywhere
Zero Trust Browser Extension & Enterprise Browser: Integrates Zero Trust SASE natively into a cross-browser extension or full Chromium-based browser, replacing expensive VDI and VPN setups for unmanaged and BYOD devices. Both form factors deliver localized data controls and Browser Detection & Response on any device, serving as a unified on-ramp to the Zero Trust Exchange™ platform.Zero Trust B2B Connectivity: Zscaler B2B exchange enables bi-directional application access for Zscaler customers and their partners without ever exposing networks or managing complex firewall rules. This replaces high-risk, complex legacy partner connectivity (including site-to-site VPNs and MPLS networks) with policy-controlled application access to secure the entire B2B supply chain.Endpoint Sandbox: Zscaler’s endpoint sandbox protects users from malicious files introduced to the endpoint from offline sources such as flash drives. This extends the current cloud sandboxing capability to support inline, API, and endpoint channels for comprehensive patient zero protection.
Workload-to-Workload Zero Trust SASE across Multi-Cloud
Zero Trust Gateway for GCP: Extends uniform SASE protection to Google Cloud Platform (GCP), in addition to the existing AWS support. This enables consistent, policy-driven security for workload-to-workload and workload-to-internet traffic, eliminating fragmented, cloud-specific security silos and complex cloud firewalls.Microsegmentation for Kubernetes: Delivers automated, granular microsegmentation directly inside Google Kubernetes Engine and Kubernetes environments. It stops lateral threat movement across Virtual Machines (VMs) and containers with zero code changes or operational friction. "Legacy SASE was built in the post-pandemic rush, based on a firewall and VPN model for a network perimeter that no longer exists. In a world of AI with distributed users, partners, and cloud workloads, that model leaves enterprises exposed," said Jay Chaudhry, Founder, Chairman, and CEO of Zscaler. "Security in the AI era has to be dynamic. With this expansion of Zero Trust SASE, we are giving organizations one platform that secures every communication, simplifies operations through agentic AI, without the cost and complexity of legacy infrastructure.”
"Security teams are spending too much time stitching together fragmented tools and reacting to misconfigurations they should never have to see," said Adam Geller, Chief Product Officer at Zscaler. "By embedding our ZAgent Framework into Zscaler’s platform, we are making SASE management largely autonomous–with root cause analysis, drift detection, policy validation all happening via agents in the platform. Combined with browser-based access and PQC readiness, this gives organizations a foundation that can scale with their AI initiatives."
"The SASE market is undergoing a fundamental shift as organizations realize that legacy network security approaches cannot keep pace with the scale of the AI era,” said John Grady, Principal Analyst at Omdia. “Today's modern, AI-driven enterprise needs Zero Trust protections across everything from unmanaged devices and B2B partners to multi-cloud workloads. Zscaler’s introduction of the ZAgent agentic AI framework goes beyond basic automation and redefines how enterprises can manage and scale security across all these areas, within a single, unified architecture."
"As we accelerate our AI initiatives, data security and operational agility are our top priorities," said Brad Skibitzki, CISO, Zebra Technologies. "Legacy VPN and firewall models have failed to provide the granular control and visibility required for a distributed workforce and multi-cloud environment. Zscaler’s Zero Trust SASE platform gives us the confidence to innovate rapidly. By leveraging the ZAgent Framework and the new Zero Trust Browser, we can secure every connection, whether it involves employee BYOD devices or cloud workloads, all while dramatically simplifying our security management."
For more information on the latest Zenith Live announcements, please visit: http://www.zscaler.com/events/zenithlive2026
About Zscaler
Zscaler (NASDAQ: ZS) is a pioneer and global leader in zero trust security. The world’s largest businesses, critical infrastructure organizations, and government agencies rely on Zscaler to secure users, branches, applications, data & devices, and to accelerate digital transformation initiatives. Distributed across 160+ data centers globally, the Zscaler Zero Trust Exchange™ platform combined with advanced AI combats billions of cyber threats and policy violations every day and unlocks productivity gains for modern enterprises by reducing costs and complexity.
Forward-Looking Statements
This press release contains forward-looking statements that are based on our management's beliefs and assumptions and on information currently available to our management. These forward-looking statements include the expected development, adoption, performance and benefits of Zscaler’s Zero Trust SASE platform expansion. These forward-looking statements are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. A significant number of factors could cause actual results to differ materially from statements made in this press release, including those factors related to Zscaler’s ability to develop, deliver and achieve customer adoption of these platform expansions and capabilities, and to address evolving AI-related, cloud, workload, unmanaged device security requirements. Additional risks and uncertainties are set forth in our most recent Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (“SEC”) on May 26, 2026, which is available on our website at ir.zscaler.com and on the SEC's website at www.sec.gov. Any forward-looking statements in this release are based on the limited information currently available to Zscaler as of the date hereof, which is subject to change, and Zscaler will not necessarily update the information, even if new information becomes available in the future.
Media Contact
Nick Gonzalez, Director of Global Public Relations, [email protected]
While total phishing volume declined for the second year in a row, ThreatLabz identified 413,524 AI-generated site instances, underscoring how quickly adversaries can scale high-fidelity phishing June 10, 2026 08:05 ET | Source: Zscaler, Inc.
News Highlights
Quality Over Quantity: Phishing volume fell 20% for the second year in a row as attackers recalibrate to high-fidelity, AI-accelerated lures.Services Sector Surge: Targeted hits against the Services sector jumped 65.5%, as adversaries exploit trust-based workflows like billing and renewals.The Encryption Blind Spot: 95.2% of phishing attempts now hide in encrypted traffic, bypassing legacy security stacks that lack deep TLS inspection."Text-to-Site" Weaponization: ThreatLabz identified over 413,000 AI-generated phishing instances, proving how easily attackers can now spin up polished, malicious sites.MFA Under Threat: Sophisticated kits like "BlackForce" are being deployed to hijack active sessions and bypass multi-factor authentication in real-time.Reconnaissance Exposed: Deception telemetry recorded 89.9 million hostile interactions from 1.37 million unique attacker IPs in six months, revealing large-scale scanning and credential validation before compromise. LAS VEGAS, June 10, 2026 (GLOBE NEWSWIRE) -- Zenith Live 2026 -- Zscaler, Inc. (NASDAQ: ZS), the cybersecurity platform for the AI era, today announced the release of the Zscaler ThreatLabz 2026 Phishing and Initial Access Report. Based on the comprehensive telemetry across the world’s largest inline security cloud, spanning phishing activity, encrypted sessions, and deception decoy interactions, the research reveals a fundamental shift in the economics of cybercrime: while overall phishing volume dropped for the second consecutive year (down 20% year-over-year (YoY)), the effectiveness and sophistication of attacks have surged.
Threat actors are increasingly utilizing AI-powered "text-to-site" tools and real-time session hijacking kits to bypass multi-factor authentication (MFA). Crucially, adversaries are heavily cloaking these sophisticated campaigns, with 95.2% of phishing attempts now hiding within encrypted traffic to bypass legacy security stacks. Furthermore, newly unveiled deception telemetry, capturing nearly 90 million hostile interactions, reveals that attackers are aggressively scanning and probing enterprise identities and collaboration platforms long before the initial compromise occurs.
"We are witnessing a strategic recalibration in the way adversaries approach initial access," said Deepen Desai, Chief Security Officer, Zscaler. "The decline in raw phishing volume isn't a sign of retreat; it’s a sign of evolution. Attackers are trading quantity for quality, using GenAI to eliminate traditional 'tells' like poor grammar and generic lures. With 95% of phishing now hiding in encrypted traffic, organizations can no longer afford to leave their TLS traffic uninspected. A Zero Trust architecture is the only way to break the attack chain, from discovery to data exfiltration."
How Adversaries Are Using GenAI for High-Fidelity Initial Compromise
The report highlights how AI has become the primary engine for modern intrusion. ThreatLabz identified 413,524 AI-generated site instances, with nearly 10% flagged as explicitly malicious. Tools like Manus AI, Blackbox AI, and Lovable AI are being weaponized to spin up polished, brand-consistent phishing portals in minutes, tasks that previously required days of manual development.
These AI-generated lures are particularly effective at mimicking trusted workflows. The Services sector bore the brunt of this shift, experiencing a 65.5% YoY surge in hits as attackers exploited trust-based interactions like billing, onboarding, and support renewals.
Additional Findings From the 2026 Report Include:
The Global Landscape: The U.S. remains a top target for email phishing attacks; Brazil saw a 2,522% surge in phishing hosting, becoming a top-five global origin.Industry Breakdown: Manufacturing and Government remain primary targets for email phishing attacks, with Government hits up 50% as attackers pursue high-value intelligence.Credential Harvesting Trends: Microsoft and Google are the most imitated brands for phishing attacks, showing continued focus on compromising enterprise identity systems.Detection Evasion: Encryption is now the default for cybercriminals, with 87% of malicious activity delivered via HTTPS.Hostile Scanning Activity: Attackers are leveraging legitimate cloud infrastructure for reconnaissance, using over 121,000 unique Public Cloud-hosted IPs to probe environments.
Deception Technology Unmasks Attacker Intent
Zscaler telemetry from global decoys captured nearly 90 million hostile interactions across 1.37 million unique attacker IPs. This data confirms that adversaries are aggressively probing collaboration and identity platforms to find weak spots, and test assumptions about what defenses will give.
Mitigating the Path to Compromise
To counter these evolving threats, the Zscaler Zero Trust Exchange™ platform delivers the AI security platform built on Zero Trust that:
Minimizes Attack Surface Discovery: Reduces exposure by hiding applications behind a cloud-delivered proxy, while leveraging Deception technology to surface reconnaissance attempts via scanning, probing, and credential validation attempts early.Helps Eliminate Initial Compromise: Blocks AI-enabled phishing and session-based attacks with AI-driven inline inspection, including full TLS/SSL inspection, to expose threats hiding in encrypted traffic.Stops Lateral Movement: Connects users directly to applications and enforces Zero Trust access controls to prevent attackers from moving from a single foothold to broader environments.Prevents Data Loss: Reduces breach impact with AI-powered data protection to identify sensitive data in motion and prevent unauthorized sharing or exfiltration. For a deeper dive into the findings and best practices for securing your organization, download the full Zscaler ThreatLabz 2026 Phishing and Initial Access Report at https://www.zscaler.com/campaign/threatlabz-phishing-initial-access-report.
Methodology
ThreatLabz analyzed over 500 trillion daily signals from the Zscaler Zero Trust Exchange, blocking over 9 billion threats daily. The report is based on data collected from January to December 2025, supplemented by deception telemetry observed between October 2025 and March 2026.
About Zscaler
Zscaler (NASDAQ: ZS) is a pioneer and global leader in zero trust security. The world’s largest businesses, critical infrastructure organizations, and government agencies rely on Zscaler to secure users, branches, applications, data & devices, and to accelerate digital transformation initiatives. Distributed across 160+ data centers globally, the Zscaler Zero Trust Exchange™ platform combined with advanced AI combats billions of cyber threats and policy violations every day and unlocks productivity gains for modern enterprises by reducing costs and complexity.
Media Contact
Nick Gonzalez, Director of Global Public Relations, [email protected]
LOS ANGELES, June 10, 2026 (GLOBE NEWSWIRE) -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Zscaler (“Zscaler” or “the Company”) (NASDAQ: ZS) for violations of the securities laws.
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. ZS is the subject of a report by CNBC on May 27, 2026, which stated the Company’s shares “tumbled more than 23% after the cloud security company guided for current-quarter revenue of between $875 million to $878 million, falling short of the $879 million analysts were seeking, per LSEG.” Based on this news, shares of Zscaler opened down more than 30% on the same day.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
The Schall Law Firm
Brian Schall, Esq.
310-301-3335 [email protected]
Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Significant Losses In Zscaler To Contact Him Directly To Discuss Their Options
If you suffered significant losses in Zscaler stock or options and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
[You may also click here for additional information]
New York, New York--(Newsfile Corp. - June 10, 2026) - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Zscaler, Inc. ("Zscaler" or the "Company") (NASDAQ: ZS).
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
On May 27, 2026, the Company issued weaker-than-expected guidance and disclosed disruptions tied to sales leadership changes, despite reporting quarterly results that exceeded analyst expectations. Reports indicated that investors were concerned about slowing growth projections, weaker customer expansion, and uncertainty surrounding the Company's sales execution and outlook. Following this news, Zscaler's stock suffered its steepest single-day decline since going public.
On this news, Zscaler's stock price fell $58.19, or 31.52% to close at $126.41 per share on May 27, 2026.
To learn more about the Zscaler investigation, go to www.faruqilaw.com/ZS or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
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Source: Faruqi & Faruqi LLP
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