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Zscaler, Inc.
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NASDAQ: ZS Technology IT 🔎 Screen
Nasdaq 100
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$34.0B
Market Cap
—
P/E
1.47
PEG
-462.9%
ROCE
-2.9%
ROE
0.72
D/E
-3.5%
OPM
-36.2%
% from 52W High
79
α RS
🔍 ZS is showing a notable setup because RS Rating is 79 and it has maintained a 11-day Stage 2 momentum persistence. The main caution: the Margin Expansion preset's Backtest win rate is only 45.2%. Net: Mixed signal stack, not a recommendation. ? RS Rating Momentum Streaks Backtest
Sources
RS Rating 79 · Stage 2 streak: 11d · Backtest win rate 45.2%
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🌏 Global Investor Returns
Currency-adjusted total returns for ZS including FX impact
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📈 Price History
Ratio Health
— Excellent
— Good
— Average
— Poor
By Category
📊 Peer Medians
About

Zscaler, Inc. operates as a cloud security company worldwide. The company offers cyberthreat protection products, including Zscaler Internet Access, which provides threat protection, cloud sandbox, and cloud browser isolation; Zscaler Private Access solution that includes cyberthreat and data protection, application discovery, secure application access, application segmentation, application protection, reduced attack surface, and browser isolation; Zero Trust Firewall; Cloud Sandbox; and Zero Trust Browser. It also provides data security products, such as web and email DLP, endpoint DLP, BYOD security, multi-mode CASB, unified SaaS security, DSPM, AI-SPM, public gen AI security, and Microsoft Copilot data protection; Zero Trust Cloud solution. In addition, the company offers Zero Trust Branch comprising Zero Trust SD-WAN; IoT/OT segmentation; privileged remote access; Zscaler Cellular; and Zscaler Digital Experience that measures end-to-end user experience across business applications, as well as provides an easy-to-understand digital experience score for each user, application, and location within an enterprise. Further, it provides security operations products, including data fabric for security; asset exposure management; Risk360; unified vulnerability management; deception; managed detection and response; and managed threat hunting. Additionally, the company offers Zero Trust Gateway, a fully managed Zscaler service. It serves the automotive, airlines and transportation, conglomerates, consumer goods and retail, energy, financial services, healthcare, insurance, manufacturing, media and communications, public sector and education, technology, and telecommunications services industries. The company was formerly known as SafeChannel, Inc., and changed its name to Zscaler, Inc. in August 2008. Zscaler, Inc. was incorporated in 2007 and is headquartered in San Jose, California.

Key Ratios Snapshot
📈 Growth Pattern
📊 Quick Scorecard
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⭐ Superinvestors Holding ZS
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Manager Shares Value % of Fund Period
Tiger Global Management Tiger Global Management LLC 1.58M $221.6M 0.97% Mar 2026
Jim Simons Renaissance Technologies LLC 230.5K $32.3M 0.05% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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3-Statement Financial Model
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🎙 Management Tone Mixed ↓ Deteriorating 4 quarters Full tone analysis in Intelligence →
Good quarter Investor Presentation One-Pager? Q3 2026
Revenue
$850.5M
+25% YoY
Operating Income (non-GAAP)
$195.8M
+33% YoY
Operating Margin (non-GAAP)
23.0%
+1.4pp YoY
Net Income (non-GAAP)
$177.9M
+30% YoY
What Went Right
  • Revenue exceeded guidance at $850.5M, 25% YoY growth
  • Record operating margin of 23%, up 140 bps YoY
  • AI Protect bookings crossed $100M in past 12 months; data security ARR surpassed $500M (+30% YoY)
What to Watch
  • Two sales leaders departed; prudent Q4 and FY27 guidance reflects potential disruption
  • CapEx rising: FY26 high single digits % of revenue, FY27 up to 200 bps higher due to hardware cost inflation
  • Organic net new ARR implied to decelerate in Q4 and FY27; tempered new logo outlook
Management Guidance
  • Q4 FY26 revenue $875M–$878M (~22% YoY)
  • Q4 FY26 non-GAAP operating profit $206M–$208M; EPS $1.08–$1.09
  • FY26 ARR $3.740B–$3.749B (~24% YoY), revenue $3.3295B–$3.3325B, operating profit $755M–$757M, FCF margin ~22.8%–23.3%
  • FY27 early view: total ARR and revenue growth 16%–17%
Investor Lens
The thesis is mixed after this call. Q3 execution was strong with revenue beat, record margins, and accelerating adoption of AI and Zero Trust branch products. However, management’s cautious guidance—driven by sales leadership departures, CapEx headwinds, and a tempered view on new logos—points to a growth deceleration in FY27. The long‑term AI tailwind remains powerful, but near‑term visibility is clouded by execution risks.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Strong Q3 beat but tempered outlook clouds momentum
Revenue
Revenue was $850.5M, up 25% YoY and above the high end of guidance. Americas grew 31%, EMEA 16%, APJ 23%. Non‑seat metered solutions drove over 30% of new ACV and ARR from those offerings grew more than 100% YoY.
Profitability
Non‑GAAP net income was $177.9M ($1.08 per diluted share), up 30% from $136.8M ($0.84) a year ago. GAAP net loss was $13.9M (‑$0.09 per share) vs. a loss of $4.1M (‑$0.03) in Q3 FY25.
Margins
Non‑GAAP gross margin of 80.7% improved from 80.3% last year. Non‑GAAP operating margin hit an all‑time high of 23%, up 140 bps YoY, driven by leverage in sales and marketing. CapEx was 5% of revenue in Q3, but expected to rise to high single digits in FY26 and increase further in FY27.
Balance Sheet
Ended Q3 with $3.5B in cash and short‑term investments and $1.7B in debt. Operating cash flow was $198M (23% of revenue), down from $211M a year ago due to timing of collections. Free cash flow was $136M (16% of revenue), vs. $119.5M (18%) in Q3 FY25.
Key Risks
Risks include: (1) Disruption from two sales leaders departing, potentially impacting near‑term bookings. (2) Rising hardware costs for data center and branch appliances, pressuring CapEx and margins. (3) Organic net new ARR growth deceleration implied in Q4 FY26 guidance (9.5% ex‑Red Canary) and the 16‑17% FY27 top‑line outlook suggests slower new logo acquisition.
Outlook
For Q4 FY26, revenue is guided to $875M–$878M (~22% YoY) with non‑GAAP operating profit of $206M–$208M. Full‑year FY26 ARR is expected at $3.740B–$3.749B, revenue $3.3295B–$3.3325B, and operating profit $755M–$757M. FY27 (early view) sees total ARR and revenue growth of 16–17%.
Generated by AI · Q3 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q3 2026 Q3 2026 2026-05-26
Q3 saw 25% ARR growth, record operating margins, and robust customer expansion, driven by AI adoption and Zero Trust platform wins. Guidance reflects continued growth but factors in sales leadership transitions and higher CapEx due to hardware costs.
Q2 2026 Q2 2026 2026-02-26
Q2 2026 saw 26% revenue and 25% ARR growth, driven by strong demand for AI security, Zero Trust, and data security solutions. Guidance was raised for the year, with robust pipeline and large enterprise wins, while non-seat-based solutions and Z-Flex contributed significantly.
Q1 2026 Q1 2026 2025-11-25
Q1 delivered 26% ARR and revenue growth, with all three strategic pillars accelerating. AI Security ARR surpassed $400M, Zero Trust Everywhere exceeded its FY26 goal early, and Data Security ARR reached $450M. FY26 guidance calls for 23% growth and strong margins.
Q4 2025 Q4 2025 2025-09-02
Q4 2025 saw 21% revenue growth and record operating margin, with ARR surpassing $3B. Strong adoption of AI Security, Zero Trust, and Data Security drove results, and guidance for fiscal 2026 projects continued 22%+ growth, supported by the Red Canary acquisition.
Q3 2025 Q3 2025 2025-05-29
Record Q3 results with revenue up 23% year-over-year and ARR at $2.9 billion, driven by strong demand for Zero Trust and AI security solutions. Z-Flex and emerging product categories accelerated growth, while the Red Canary acquisition and new CFO appointment position the company for continued expansion.
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📊 Analysis Methodology

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
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Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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