Upside case
Bull case
$43-65.9%
The bull case prices ZS at 10x on FY1 earnings, assuming continued execution and no meaningful deceleration in the core business.
Analysis OverviewBuyUpdated Jun 18, 2026
Zscaler, Inc. (ZS) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
53
analysts
42 bullish · 1 bearish · 53 covering ZS
Strong Buy
0
Buy
42
Hold
10
Sell
1
Strong Sell
0
Consensus Target
$193
+54.8% vs today
Scenario Range
$20 – $43
Model bear to bull value window
Coverage
53
Published analyst ratings
Valuation Context
30.3x
Forward P/E · Market cap $20.2B
ZS price targets
Three scenarios for where ZS stock could go
Current
~$125
Confidence
77 / 100
Updated
Jun 18, 2026
Where we are now
Current · $125
Bear
$20
Base
$32
Bull
$43
Market caseClosest to today
Base case
$32-74.1%
At 8x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$20-83.7%
If investor confidence fades or macro conditions deteriorate, a 25x multiple contraction could push ZS down roughly 84% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Zscaler, Inc.
ZS · NASDAQTechnologySoftware - InfrastructureJuly year-end
Zscaler is a cloud-native security platform that provides secure internet and private application access without traditional network hardware. It generates revenue primarily through subscription fees for its Zero Trust Exchange platform — with its core Zscaler Internet Access and Zscaler Private Access solutions driving most of its business. The company's key advantage is its massive, globally distributed cloud architecture that processes over 300 billion daily transactions, creating significant scale and data advantages that competitors cannot easily replicate.
Market Cap
$20.2B
Revenue TTM
$3.2B
Net Income TTM
-$77M
Net Margin
-2.4%
ZS Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
100%Exceptional
12 quarters tracked
Revenue Beat Rate
92%Exceptional
vs consensus estimates
Avg EPS Surprise
+20.7%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 4 of 4Q3 2025
EPS
$0.89/$0.80
Revenue
$719M/$707M
Q4 2025
EPS
$0.96/$0.86
Revenue
$788M/$773M
Q1 2026
EPS
$1.01/$0.89
Revenue
$816M/$798M
Q2 2026
EPS
$1.08/$1.01
Revenue
$850M/$835M
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $0.89/$0.80 | +11.3% | $719M/$707M | +1.7% |
| Q4 2025 | $0.96/$0.86 | +12.1% | $788M/$773M | +1.9% |
| Q1 2026 | $1.01/$0.89 | +13.0% | $816M/$798M | +2.2% |
| Q2 2026 | $1.08/$1.01 | +6.9% | $850M/$835M | +1.8% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$3.5B
+10.8% YoY
FY2
$3.9B
+10.9% YoY
EPS Outlook
FY1
$2.28
+572.9% YoY
FY2
$1.80
-21.1% YoY
Trailing FCF (TTM)$1.0B
FCF Margin: 32.2%
Next Earnings
—
Expected EPS
—
Expected Revenue
—
ZS beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
ZS Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $2.7B
Product Mix
Latest annual revenue by segment or product family
Reportable Segment
100.0%
YoY unavailable
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
Segment breakdown not available for this company.
Reportable Segment is the largest disclosed segment at 100.0% of FY 2025 revenue, with no year-over-year comparison yet.
ZS Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Cheap versus peers
Fair value est. $308 — implies +146.6% from today's price.
Upside to Fair Value
146.6%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
ZS
-462.4x
vs
S&P 500
24.4x
1991% discount
vs Technology Trailing P/E
ZS
-462.4x
vs
Technology
29.0x
1694% discount
vs ZS 5Y Avg P/E
Today
-462.4x
vs
5Y Average
—
Benchmark unavailable
Forward PE
30.3x
S&P 500
18.8x
+61%
Technology
22.3x
+36%
5Y Avg
—
—
Trailing PE
-462.4x
S&P 500
24.4x
-1991%
Technology
29.0x
-1694%
5Y Avg
—
—
PEG Ratio
—
S&P 500
1.66x
—
Technology
1.51x
—
5Y Avg
—
—
EV/EBITDA
—
S&P 500
15.2x
—
Technology
16.6x
—
5Y Avg
—
—
Price/FCF
27.8x
S&P 500
20.7x
+34%
Technology
19.2x
+45%
5Y Avg
67.7x
-59%
Price/Sales
7.6x
S&P 500
3.1x
+144%
Technology
2.4x
+210%
5Y Avg
22.2x
-66%
Dividend Yield
—
S&P 500
1.91%
—
Technology
1.11%
—
5Y Avg
—
—
| Metric | ZS | S&P 500 | Technology | 5Y Avg ZS |
|---|---|---|---|---|
| Forward PE | 30.3x | 18.8x+61% | 22.3x+36% | — |
| Trailing PE | -462.4x | 24.4x-1991% | 29.0x-1694% | — |
| PEG Ratio | — | 1.66x | 1.51x | — |
| EV/EBITDA | — | 15.2x | 16.6x | — |
| Price/FCF | 27.8x | 20.7x+34% | 19.2x+45% | 67.7x-59% |
| Price/Sales | 7.6x | 3.1x+144% | 2.4x+210% | 22.2x-66% |
| Dividend Yield | — | 1.91% | 1.11% | — |
ZS trades above S&P 500 benchmarks on 3 of 4 measured multiples — commands a broad premium across most valuation dimensions.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolZS Financial Health
Verdict
Stressed
ZS generates $1.0B in free cash flow at a 32.2% margin.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$3.2B
Revenue Growth
TTM vs prior year
+24.6%
Gross Margin
Gross profit as a share of revenue
76.7%
Operating Margin
Operating income divided by revenue
-4.7%
Net Margin
Net income divided by revenue
-2.4%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$-0.48
Free Cash Flow (TTM)
Cash generation after capex
$1.0B
FCF Margin
FCF as share of revenue — the primary cash quality signal
32.2%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
-8.4%
ROA
Return on assets, trailing twelve months
-1.2%
Cash & Equivalents
Liquid assets on the balance sheet
$2.4B
Net Cash
Cash exceeds total debt — no net leverage
$592M
Debt Serviceability
Net debt as a multiple of annual free cash flow
Net cash ✓
ROE *
Return on equity, trailing twelve months
-3.7%
* Elevated by buyback-compressed equity — compare ROIC (-8.4%) for an undistorted picture of capital efficiency.
Shareholder Returns
How capital is returned to owners
Total shareholder yield
0.0%
Dividend
—
Buyback
0.0%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$0
Dividend / Share
Annualized trailing dividend per share
—
Payout Ratio
Share of earnings distributed as dividends
—
Shares Outstanding
Current diluted share count
162M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt). ROE marked * where buyback-compressed equity base may inflate the figure.
Open full ratios pageZS Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated June 18, 2026
High Risk
Stock Volatility
The stock has experienced significant drawdowns, averaging -28% during systemic shocks, underperforming the S&P 500.
High Risk
Price Decline
The stock trades at $135.50, well below its 52-week high of $336.99, indicating substantial recent losses.
Medium
Market Sentiment
Bearish theses highlight concerns about Zscaler's valuation and growth sustainability amid competitive pressures.
Medium
Competitive Risks
As a cloud security provider, Zscaler faces intense competition in the rapidly evolving zero-trust market.
Lower
Operational Resilience
Despite market challenges, Zscaler maintains a strong cloud-native platform with broad enterprise adoption.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why ZS Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated June 18, 2026
Zero Trust Leadership
Zscaler is a leading provider of cloud-based zero trust security solutions, positioning it well for enterprise digital transformation.
Cloud Security Demand
The company's cloud-native security platform addresses growing demand for protecting users, workloads, and devices in the AI era.
Market Valuation Potential
With a high forward P/E ratio, investors see long-term growth potential in Zscaler's business model and market position.
Innovative Platform Features
Zscaler's automated client connector and inline security cloud provide seamless, lightweight protection without traditional authentication methods.
Enterprise Adoption Growth
As businesses globally adopt zero trust frameworks, Zscaler's solutions are increasingly critical for secure network and data protection.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
ZS Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$124.85
52W Range Position
5%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$114.63
+8.9% from the low
52-Week High
$336.99
-63.0% from the high
1 Month
-28.53%
3 Month
-19.96%
YTD
-43.4%
1 Year
-59.1%
3Y CAGR
-5.7%
5Y CAGR
-10.6%
10Y CAGR
+14.2%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
ZS vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
30.3x
vs 79.1x median
-62% below peer median
Revenue Growth
+10.8%
vs +13.5% median
-20% below peer median
Net Margin
-2.4%
vs -0.5% median
-407% below peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
ZS ZS Zscaler, Inc. | $20.2B | 30.3x | +10.8% | -2.4% | Buy | +54.8% |
CRW CRWD CrowdStrike Holdings, Inc. | $174.3B | 138.7x | +17.2% | -0.5% | Buy | +0.4% |
PAN PANW Palo Alto Networks, Inc. | $196.1B | 76.3x | +12.3% | 7.9% | Buy | +12.9% |
FTN FTNT Fortinet, Inc. | $107.1B | 45.9x | +13.5% | 27.5% | Hold | -31.6% |
NET NET Cloudflare, Inc. | $79.2B | 187.1x | +19.5% | -3.7% | Buy | +2.2% |
S S SentinelOne, Inc. | $5.1B | 79.1x | +9.2% | -30.4% | Buy | +26.3% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
FAQ
7 questionsZS Investor Questions
Common questions answered from live analyst data and company financials.
01Is Zscaler, Inc. (ZS) stock a buy or sell in 2026?
Zscaler, Inc. (ZS) is rated Buy by Wall Street analysts as of 2026. Of 53 analysts covering the stock, 42 rate it Buy or Strong Buy, 10 rate it Hold, and 1 rate it Sell or Strong Sell. The consensus 12-month price target is $193, implying +54.8% from the current price of $125. The bear case scenario is $20 and the bull case is $43.
02What is the ZS stock price target for 2026?
The Wall Street consensus price target for ZS is $193 based on 53 analyst estimates. The high-end target is $250 (+100.2% from today), and the low-end target is $145 (+16.1%). The base case model target is $32.
03Is Zscaler, Inc. (ZS) stock overvalued in 2026?
ZS trades at 30.3x times forward earnings. The stock currently trades at a discount to the broader market. Based on current multiples versus the peer group, the relative model signals cheap versus peers. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Zscaler, Inc. (ZS) stock in 2026?
The primary risks for ZS in 2026 are: (1) Stock Volatility — The stock has experienced significant drawdowns, averaging -28% during systemic shocks, underperforming the S&P 500. (2) Price Decline — The stock trades at $135. (3) Market Sentiment — Bearish theses highlight concerns about Zscaler's valuation and growth sustainability amid competitive pressures. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Zscaler, Inc.'s revenue and earnings forecast?
Analyst consensus estimates ZS will report consensus revenue of $3.5B (+10.8% year-over-year) and EPS of $2.28 (+572.9% year-over-year) for the upcoming fiscal year. The following year, analysts project $3.9B in revenue.
06When does Zscaler, Inc. (ZS) report its next earnings?
A confirmed upcoming earnings date for ZS is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
07How much free cash flow does Zscaler, Inc. generate?
Zscaler, Inc. (ZS) generated $1.0B in free cash flow over the trailing twelve months — a free cash flow margin of 32.2%. ZS returns capital to shareholders through and share repurchases ($0 TTM).