ZS Zscaler Inc.
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Daily prices, adjusted for splits. P/E and P/S value each day on the results published by then; a gap in P/E means the trailing year had no profit.
Software - Infrastructure · San Jose, CA · 8,700 employees · zscaler.com · Investor relations
Zscaler provides cloud-based cybersecurity and zero trust network architecture designed to protect digital workflows, devices, and applications. The company generates revenue by selling subscriptions to its security platforms, data protection services, and monitoring tools to enterprise clients worldwide.
Bull case
The business benefits from an artificial intelligence tailwind, as its software sits where automated agents perform work and it can market AI offerings to a large installed customer base. Annual revenue growth has also accelerated, though this figure includes contributions from acquired businesses.
- Trades at the 16th percentile of its own valuation history.
- Annual revenue growth rose from +23% to +25%, including acquired businesses.
- The share price trend is rising.
Bear case
The business burns cash once equity-based compensation is factored in, weighed down by heavy stock-based pay.
- Burns cash after stock pay (-1% of revenue).
- Stock pay equals 25% of revenue.
Features
- V-ACCELERATING Growth accelerating Annual revenue growth rose from +23% to +25%, including acquired businesses. Shared by most companies we track
- G-AGENCY Heavy stock pay Stock pay equals 25% of revenue.
- T8 Lazarus Cheap against its own history, and the price trend has turned up.
AI impact
Sells AI to its customers Tailwind
The company sells a cloud security platform connecting users, workloads, and AI agents to applications and data. It benefits because its software sits in enterprise workflows and sells additional AI security tools to existing customers, though user-based subscriptions pose a risk if customer headcounts fall.
Where AI helps it
- Its software sits where AI agents would do the work
- Can sell AI to a large base of existing customers
Where AI could hurt it
- Charges per user, and AI could shrink the number of paid users (minor)
In the company's words
Our Zscaler Zero Trust Exchange TM security platform is a cloud-native security solution that is purpose-built to securely connect users, devices, workloads and AI agents to applications, AI models and data based on identity and business policy, rather than network location.
We leverage organic account expansion to sell subscriptions for additional users, additional solutions and premium solution bundles that contain more functionality, including non-user-based metered pricing models.
Assessed by AI from the company's own annual report filed 3 Sep 2026. A reading of the business, not a forecast or a recommendation.
Valuation position
ZS is at the 16th percentile of its own valuation history. Depending on how far back you look, it ranges from the 16th to the 24th percentile. This is a relative measurement, not a price target or recommendation, and it assumes the business is still the one its history describes.
The band is the range it reads at depending on how far back you look; the dot is where this page places it.
Price ladder
The measured price sits in the Reference zone. These are reference zones, not buy instructions or forecasts that the prices will be reached.
Quality versus peers
Each dimension is shown on its own; they are not combined into a score.
Current analyst snapshot
Shown for reference only; not used in any measurement.
What would have to break
- Not triggered — Revenue decline
- Not triggered — Margin break
- Not triggered — Cash burn with rising debt
- Not triggered — Heavy dilution
- Not triggered — Warning language in filings
News
No recent brief on this company.