Zscaler, Inc. (ZS) AI Stock Analysis

Zscaler, Inc. is a cloud security company headquartered in San Jose, California, founded in 2007. It provides secure access for users, workloads, and IoT and OT devices across diverse industries, such as financial services, healthcare, and airlines. Its core offerings include Zscaler Internet Access for secure access to SaaS and internet destinations, and Zscaler Private Access for internal applications hosted in data centers or clouds. The company also offers Zscaler Digital Experience for monitoring user experience scores, alongside Posture Control solutions providing Cloud Security Posture Management, vulnerability scanning, and data loss prevention.

Zscaler grew revenue from $1.09B in FY2022 to $3.35B in FY2026, representing a 5-year compound annual growth rate of 37.9% through FY2026. Annual revenue growth was 25.4% in FY2026, following 23.3% in FY2025. Gross margin was 76.8% in FY2026, compared to 77.7% in FY2022. Operating margin improved from -30.0% in FY2022 to -4.0% in FY2026. Although annual net income remained negative at -$63.2M in FY2026, operating cash flow expanded to $1.13B and free cash flow reached $852.4M. For the latest quarter ended July 31, 2026, quarterly revenue growth was 24.9% year-over-year, while trailing twelve-month profit margin was -1.9%.

As of July 31, 2026, Zscaler held $3.47B in cash and short-term investments against $1.86B in total debt, yielding a net cash position of $1.62B. The company reported a current ratio of 1.70 and a debt-to-equity ratio of 0.71 on $2.60B of shareholders' equity. In FY2026, operating cash flow reached $1.13B, supporting capital expenditures of $277.3M. Over the past five years, the company's share count increased by 15.0%.

Zscaler carries a market cap of $33.81B and an enterprise value of $33.35B. The stock trades at a forward P/E of 43.9x and a price-to-sales multiple of 10.1x, well above the US-listed Technology peer medians of 18.8x forward P/E and 2.8x price-to-sales. Its EV/EBITDA multiple stands at 186.8x compared to the peer median of 16.6x. Over the past year, the stock declined 30.7%, underperforming the S&P 500 (SPY) gain of 16.8%. Over five years, the stock fell 29.1% while the S&P 500 rose 83.0%.

Wall Street coverage consists of 29 Strong Buy, 7 Buy, and 10 Hold ratings, with zero Sell or Strong Sell recommendations. The mean price target of $233.72 represents a 12.7% premium over the last close of $207.38 on October 16, 2026. For the current fiscal year ending July 31, 2027, consensus estimates project revenue of $3.93B and EPS of $4.91, up 16.6%. Across the last four quarters, Zscaler posted 3 EPS beats. The next earnings date is November 24, 2026.

This page is an AI-written research summary of Zscaler, Inc. (ZS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: ZS income statement, ZS balance sheet, ZS key metrics, ZS analyst forecast, ZS chart. See the ZS stock overview for the latest quote and news.