Upside case
Bull case
—
The bull case requires both strong earnings delivery and the market pricing ZS more generously than it does today.
Analysis OverviewBuyUpdated May 1, 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
52
analysts
40 bullish · 1 bearish · 52 covering ZS
Strong Buy
0
Buy
40
Hold
11
Sell
1
Strong Sell
0
Consensus Target
$277
+99.7% vs today
Scenario Range
— – —
Model bear to bull value window
Coverage
52
Published analyst ratings
Valuation Context
34.6x
Forward P/E · Market cap $22.3B
ZS price targets
Three scenarios for where ZS stock could go
Current
~$139
Confidence
80 / 100
Updated
May 1, 2026
Market caseClosest to today
Base case
—
The base case reflects analyst consensus expectations — steady delivery without requiring a major catalyst or re-rating.
Stress case
Bear case
—
The bear case reflects a scenario where earnings shortfalls or multiple compression combine to materially reduce the stock from its current level.
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
$22.3B
Revenue TTM
$3.0B
Net Income TTM
-$68M
Net Margin
-2.3%
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
83%Exceptional
vs consensus estimates
Avg EPS Surprise
+21.3%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q2 2025
Q3 2025
Q4 2025
Q1 2026
Last 4 Quarters
EPS beats: 4 of 4Q2 2025
EPS
$0.84/$0.75
Revenue
$678M/$666M
Q3 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
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q2 2025 | $0.84/$0.75 | +11.7% | $678M/$666M | +1.7% |
| 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% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$3.5B
+17.7% YoY
FY2
$4.6B
+29.1% YoY
EPS Outlook
FY1
$2.61
+715.7% YoY
FY2
$2.60
-0.3% YoY
Trailing FCF (TTM)$944M
FCF Margin: 31.4%
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
Significantly Undervalued
Fair value est. $296 — implies +112.0% from today's price.
Upside to Fair Value
112.0%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
ZS
-514.2x
vs
S&P 500
25.2x
2138% discount
vs Technology Trailing P/E
ZS
-514.2x
vs
Technology
27.5x
1971% discount
vs ZS 5Y Avg P/E
Today
-514.2x
vs
5Y Average
—
Benchmark unavailable
Forward PE
34.6x
S&P 500
19.1x
+82%
Technology
21.7x
+59%
5Y Avg
—
—
Trailing PE
-514.2x
S&P 500
25.2x
-2138%
Technology
27.5x
-1971%
5Y Avg
—
—
PEG Ratio
—
S&P 500
1.75x
—
Technology
1.47x
—
5Y Avg
—
—
EV/EBITDA
—
S&P 500
15.3x
—
Technology
17.4x
—
5Y Avg
—
—
Price/FCF
30.7x
S&P 500
21.3x
+44%
Technology
19.8x
+55%
5Y Avg
67.7x
-55%
Price/Sales
8.3x
S&P 500
3.1x
+166%
Technology
2.4x
+245%
5Y Avg
22.2x
-62%
Dividend Yield
—
S&P 500
1.88%
—
Technology
1.18%
—
5Y Avg
—
—
| Metric | ZS | S&P 500 | Technology | 5Y Avg ZS |
|---|---|---|---|---|
| Forward PE | 34.6x | 19.1x+82% | 21.7x+59% | — |
| Trailing PE | -514.2x | 25.2x-2138% | 27.5x-1971% | — |
| PEG Ratio | — | 1.75x | 1.47x | — |
| EV/EBITDA | — | 15.3x | 17.4x | — |
| Price/FCF | 30.7x | 21.3x+44% | 19.8x+55% | 67.7x-55% |
| Price/Sales | 8.3x | 3.1x+166% | 2.4x+245% | 22.2x-62% |
| Dividend Yield | — | 1.88% | 1.18% | — |
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 $944M in free cash flow at a 31.4% margin.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$3.0B
Revenue Growth
TTM vs prior year
+23.9%
Gross Margin
Gross profit as a share of revenue
76.6%
Operating Margin
Operating income divided by revenue
-4.8%
Net Margin
Net income divided by revenue
-2.3%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$-0.42
Free Cash Flow (TTM)
Cash generation after capex
$944M
FCF Margin
FCF as share of revenue — the primary cash quality signal
31.4%
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
-1.0%
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
-3.1%
* 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
154M
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 April 29, 2026
High Risk
Market Volatility
ZS stock is subject to high volatility, particularly influenced by fluctuations in the technology sector. This volatility can result in significant investment losses for shareholders.
High Risk
Profitability Concerns
ZS remains unprofitable on a GAAP basis due to substantial expenditures on sales and research. This ongoing lack of profitability raises concerns for investors regarding the company's financial sustainability.
High Risk
Debt Levels
ZS has a relatively high debt-to-equity ratio, indicating substantial debt taken on to fuel growth. Investors should closely monitor this debt as it poses risks to financial stability.
Medium
Intense Competition
Operating in a highly competitive cloud security market, ZS faces pressure from larger established platforms and emerging startups. The risk of losing market share to competitors like Cloudflare and Netskope is significant.
Medium
Revenue Concentration
There is a risk of revenue concentration, particularly within the Life Sciences sector. A downturn in this sector could disproportionately impact ZS's overall revenue.
Medium
Stock-Based Compensation
A significant portion of ZS's revenue is allocated to stock-based compensation, which is considered high for the software sector. This could affect profitability and investor sentiment.
Lower
Litigation Risk
ZS is currently facing a significant breach of contract lawsuit from MicroStrategy Services Corp. While this may not have immediate financial implications, it poses a risk to the company's reputation and operational focus.
Lower
Client Base Risks
A substantial portion of ZS's clients are in the pharmaceutical industry, which can be subject to regulatory changes. This reliance on a specific sector may expose ZS to sector-specific risks.
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 April 29, 2026
Strong Market Position in Cybersecurity
Zscaler is a dominant player in the cloud security market, particularly in the Zero Trust architecture. This positioning allows the company to capitalize on the increasing reliance on cloud services and the growing threat landscape.
Significant Growth Potential
Zscaler's current revenue represents only a small fraction of its substantial addressable market, indicating significant room for expansion. Analysts suggest the company could achieve durable growth of 20% or more, potentially aligning its valuation multiples with competitors like CrowdStrike or Cloudflare.
Robust Free Cash Flow Generation
The company demonstrates strong free cash flow generation, which supports its ability to convert sales into cash while investing in growth. This financial health is a key factor in the bullish outlook for Zscaler.
Positive Analyst Sentiment
A significant majority of analysts recommend a 'Buy' or 'Strong Buy' rating for Zscaler stock, indicating strong market confidence. Upcoming earnings reports are anticipated as potential catalysts for further stock appreciation.
Innovative AI Security Initiatives
Zscaler's AI Security initiatives, including AI Guard and Agentic Operations, are viewed as key growth drivers. These initiatives aim to monetize non-human users and mitigate risks associated with traditional seat-based SaaS models.
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
$138.83
52W Range Position
11%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$114.63
+21.1% from the low
52-Week High
$336.99
-58.8% from the high
1 Month
-0.49%
3 Month
-17.03%
YTD
-37.1%
1 Year
-40.4%
3Y CAGR
+8.8%
5Y CAGR
-3.7%
10Y CAGR
+15.5%
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
34.6x
vs 80.7x median
-57% below peer median
Revenue Growth
+17.7%
vs +17.7% median
+0% above peer median
Net Margin
-2.3%
vs -3.8% median
+41% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
ZS ZS Zscaler, Inc. | $22.3B | 34.6x | +17.7% | -2.3% | Buy | +99.7% |
CRW CRWD CrowdStrike Holdings, Inc. | $118.6B | 96.2x | +23.5% | -3.8% | Buy | +12.9% |
PAN PANW Palo Alto Networks, Inc. | $129.1B | 49.8x | +15.3% | 13.0% | Buy | +13.2% |
FTN FTNT Fortinet, Inc. | $66.6B | 30.2x | +13.2% | 27.5% | Hold | -3.5% |
NET NET Cloudflare, Inc. | $87.8B | 221.4x | +27.1% | -4.7% | Buy | -12.9% |
S S SentinelOne, Inc. | $4.8B | 80.7x | +17.7% | -45.0% | Buy | +21.9% |
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 52 analysts covering the stock, 40 rate it Buy or Strong Buy, 11 rate it Hold, and 1 rate it Sell or Strong Sell. The consensus 12-month price target is $277, implying +99.7% from the current price of $139.
02What is the ZS stock price target for 2026?
The Wall Street consensus price target for ZS is $277 based on 52 analyst estimates. The high-end target is $360 (+159.3% from today), and the low-end target is $160 (+15.2%).
03Is Zscaler, Inc. (ZS) stock overvalued in 2026?
ZS trades at 34.6x 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 significantly undervalued. 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) Market Volatility — ZS stock is subject to high volatility, particularly influenced by fluctuations in the technology sector. (2) Profitability Concerns — ZS remains unprofitable on a GAAP basis due to substantial expenditures on sales and research. (3) Debt Levels — ZS has a relatively high debt-to-equity ratio, indicating substantial debt taken on to fuel growth. 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 (+17.7% year-over-year) and EPS of $2.61 (+715.7% year-over-year) for the upcoming fiscal year. The following year, analysts project $4.6B 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 $944M in free cash flow over the trailing twelve months — a free cash flow margin of 31.4%. ZS returns capital to shareholders through and share repurchases ($0 TTM).