Zscaler, Inc.
- Open
- 184.17
- Day high
- 190.47
- Day low
- 183.90
- Prev close
- 184.23
- Volume
- 2.5M
- Mkt cap
- $30.5B
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 12.9
- P/S
- 9.6
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$2.7M over the last 3 months (0 open-market buys, 23 sales)
- 🏛Institutions accumulating (13F)
Zscaler, Inc. (ZS) is a Technology company listed on NASDAQ. The stock is down 31% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 23 sales (SEC Form 4). Drillr has 2 published research articles covering ZS.
Zscaler, Inc. (ZS) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 15 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
ZS earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 26, 2026 | $1.01 | $1.08 | +6.9% | $850M | +1.8% |
| Nov 25, 2025 | $0.85 | $0.96 | +12.3% | $788M | +1.9% |
| Sep 2, 2025 | $0.80 | $0.89 | +10.7% | $719M | +1.5% |
| May 29, 2025 | $0.76 | $0.84 | +10.5% | $678M | +1.4% |
| Mar 5, 2025 | $0.70 | $0.78 | +12.1% | $648M | +1.7% |
| Dec 2, 2024 | $0.64 | $0.77 | +20.1% | $628M | +3.2% |
| Sep 3, 2024 | $0.72 | $0.88 | +22.7% | $593M | +4.0% |
| May 30, 2024 | $0.67 | $0.88 | +31.9% | $553M | +2.7% |
| Feb 29, 2024 | $0.59 | $0.76 | +29.5% | $525M | +2.9% |
| Nov 27, 2023 | $0.49 | $0.67 | +35.4% | $497M | -0.4% |
| Sep 5, 2023 | $0.49 | $0.64 | +30.1% | $455M | +5.1% |
| Jun 1, 2023 | $0.42 | $0.48 | +14.8% | $419M | -2.9% |
ZS insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 26, 2026 | RUBIN KEVINofficer: Chief Financial Officer | Sell | 291 | $172.53 |
| Aug 26, 2026 | RUBIN KEVINofficer: Chief Financial Officer | Sell | 66 | $175.78 |
| Aug 26, 2026 | RUBIN KEVINofficer: Chief Financial Officer | Sell | 92 | $173.53 |
| Aug 26, 2026 | RUBIN KEVINofficer: Chief Financial Officer | Sell | 48 | $174.54 |
| Aug 26, 2026 | RUBIN KEVINofficer: Chief Financial Officer | Sell | 6 | $176.49 |
| Jul 28, 2026 | RUBIN KEVINofficer: Chief Financial Officer | Sell | 75 | $145.71 |
| Jul 28, 2026 | RUBIN KEVINofficer: Chief Financial Officer | Sell | 72 | $144.74 |
| Jul 28, 2026 | RUBIN KEVINofficer: Chief Financial Officer | Sell | 118 | $147.74 |
| Jul 28, 2026 | RUBIN KEVINofficer: Chief Financial Officer | Sell | 96 | $146.75 |
| Jul 28, 2026 | RUBIN KEVINofficer: Chief Financial Officer | Sell | 142 | $148.81 |
| Jul 7, 2026 | Schlossman Robertofficer: Chief Legal Officer | Sell | 122 | $150.00 |
| Jun 26, 2026 | RUBIN KEVINofficer: Chief Financial Officer | Sell | 504 | $123.18 |
| Jun 26, 2026 | RUBIN KEVINofficer: Chief Financial Officer | Sell | 560 | $124.87 |
| Jun 26, 2026 | RUBIN KEVINofficer: Chief Financial Officer | Sell | 228 | $125.97 |
| Jun 26, 2026 | RUBIN KEVINofficer: Chief Financial Officer | Sell | 12 | $126.79 |
Source: ZS SEC Form 4 filings, latest Aug 26, 2026. For informational purposes only — not investment advice.
See the full ZS insider & 13F page →ZS research & analysis
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Zscaler, Inc. company profile
Overview
Zscaler, Inc. (NASDAQ:ZS) is a cloud-based cybersecurity company founded in 2007 and headquartered in San Jose, California. Originally incorporated as SafeChannel, Inc., the company changed its name to Zscaler in 2008 and went public in March 2018. Zscaler has emerged as a pioneer in the Zero Trust security architecture, operating one of the world's largest security clouds that processes over 500 billion transactions daily across nearly 8,700 customers and 47 million users worldwide. The company has grown rapidly from $1.1 billion in revenue in fiscal 2022 to over $2.1 billion in fiscal 2024, positioning itself as a leader in the transformation from traditional network security to cloud-native Zero Trust solutions.
Business
Zscaler operates in the cloud security industry, specifically focusing on Zero Trust network security architecture. Traditional network security relied on perimeter-based defenses like firewalls and VPNs, which assume everything inside the corporate network is trustworthy. Zero Trust, by contrast, assumes no user or device should be trusted by default and requires verification for every access request, regardless of location. The company's core platform, called the Zero Trust Exchange, consists of three main components: Zscaler Central Authority (the policy engine), Zscaler Enforcement Nodes (globally distributed data centers), and Zscaler Log Servers (for analytics and reporting). This platform delivers several key products: 1. Zscaler Internet Access (ZIA) - Approximately 70-75% of revenue. This replaces traditional secure web gateways and provides users secure access to internet applications and SaaS platforms. Instead of routing traffic through corporate data centers, ZIA connects users directly to applications through Zscaler's cloud, reducing latency and improving security. 2. Zscaler Private Access (ZPA) - Roughly 19-20% of revenue, growing at 75-80% annually. This replaces traditional VPNs by providing secure access to internal applications without exposing the entire corporate network. Users connect only to specific applications they need, not the broader network. 3. Emerging Products - About 22-25% of new business, including Zscaler Digital Experience (ZDX) for monitoring application performance, workload protection for securing cloud applications, data protection solutions, and AI-powered security analytics. These products extend Zero Trust principles beyond user access to cover applications, workloads, and data. The company serves customers across various industries including financial services, healthcare, manufacturing, government, and technology, with particular strength in large enterprises and the federal sector, where it serves 14 of 15 cabinet-level agencies.
Revenue model
Zscaler operates on a Software-as-a-Service (SaaS) subscription model, generating revenue through multi-year contracts typically ranging from one to three years. Customers pay based on the number of users, applications, or data volume they need to secure, with pricing tiers that scale with usage and feature sets. The company's primary revenue drivers include: 1. New customer acquisition, particularly targeting the Global 2000 enterprises where Zscaler currently serves approximately 35% of companies. 2. Expansion within existing customers through upselling additional products and increasing user counts, evidenced by a dollar-based net retention rate of 114-116%. 3. Multi-product platform sales, where customers increasingly adopt multiple Zscaler solutions rather than single point products. Several factors positively impact Zscaler's margins and growth prospects. The ongoing digital transformation and remote work trends drive demand for cloud-based security solutions. The hardware refresh cycle in enterprise networks creates opportunities to replace traditional firewalls and VPNs with Zscaler's cloud services. Additionally, the company benefits from increasing cyber threats and regulatory compliance requirements that prioritize security investments. The shift toward AI and generative AI applications creates new security challenges that Zscaler addresses with specialized products. Conversely, margin pressures could arise from intensifying competition in the SASE (Secure Access Service Edge) market as traditional security vendors and cloud providers expand their offerings. Macroeconomic uncertainty can extend sales cycles and reduce deal sizes as customers scrutinize technology investments more carefully. The company's aggressive investment in sales capacity, R&D, and global infrastructure also pressures near-term profitability, though management views these as necessary for long-term market leadership. Additionally, the commoditization of basic security services could pressure pricing power, though Zscaler's platform approach and innovation pace help differentiate its offerings.
Competitive moat
Zscaler's competitive moat stems from several interconnected advantages, though the strength varies across different aspects of its business. The company's most significant moat is its global cloud infrastructure and scale. With over 150 data centers worldwide processing 500+ billion daily transactions, Zscaler has built a network effect where more users and data improve the platform's threat intelligence and performance for all customers. This creates substantial barriers to entry, as competitors would need massive capital investments and years to replicate this infrastructure. The company also benefits from high switching costs once customers adopt its Zero Trust architecture. Migrating from Zscaler requires not just changing vendors but fundamentally redesigning network security approaches, retraining IT staff, and potentially disrupting business operations. Customer retention rates in the high 90% range demonstrate this stickiness. Additionally, Zscaler's data advantage strengthens over time as the platform learns from billions of security events, improving its AI-powered threat detection and policy recommendations. However, Zscaler's moat faces meaningful challenges. The cloud security market is attracting significant competition from well-funded players including Microsoft, Palo Alto Networks, Fortinet, and AWS, all of whom have substantial resources and existing customer relationships. Microsoft's integration of security features into its broader productivity suite poses a particular threat given its ubiquitous presence in enterprises. Additionally, as Zero Trust concepts become more mainstream, the architectural advantages that differentiated Zscaler early on may become commoditized. The company's innovation pace and execution capability represent its most sustainable competitive advantage. Zscaler has consistently introduced new products and capabilities ahead of competitors, but this requires continuous substantial R&D investment and depends heavily on retaining key technical talent. While the company currently maintains technological leadership, this advantage could erode if execution falters or if larger competitors successfully replicate its innovations with greater resources.
Risks & safety
Zscaler presents a moderate margin of safety profile with mixed financial health indicators: **Cash Position and Liquidity:** - Strong cash position of $1.76 billion with minimal debt - Positive free cash flow of $143 million in Q2 2025, though volatile quarter-to-quarter - Current ratio of 1.20, indicating adequate short-term liquidity but tighter than historical levels - No significant solvency concerns given strong balance sheet **Profitability and Burn:** - Minimal net losses ($7.7 million in Q2 2025) showing path to sustained profitability - Positive EBITDA of $13.6 million demonstrates operational leverage - Free cash flow positive but inconsistent, ranging from $123-331 million quarterly **Valuation Concerns:** - Extremely high EV/EBITDA of 565x due to low EBITDA base - Price-to-book ratio of 19.4x reflects high growth expectations - Trading at premium valuations typical of high-growth SaaS companies - Revenue multiple appears elevated relative to growth deceleration (23% vs. historical 30%+) **Other Considerations:** - Strong recurring revenue base with 114% net retention provides revenue predictability - Debt-to-equity ratio of 0.77 is manageable but higher than historical levels - Business model scalability suggests improving margins as revenue grows
Recent development
Over the past several years, Zscaler has undergone significant strategic evolution focused on platform expansion and go-to-market transformation. The company has aggressively expanded beyond its core internet security offering into a comprehensive Zero Trust platform through both organic development and strategic acquisitions, including Avalor for vulnerability management and Airgap Networks for branch security solutions. A major strategic pivot has been the launch of the "Zero Trust Everywhere" initiative, targeting enterprises to adopt comprehensive Zero Trust architecture across users, applications, and infrastructure. The company aims to triple the number of enterprises with this approach within 18 months, currently serving over 130 organizations. This represents a shift from selling individual security products to positioning Zscaler as the foundational security platform for digital transformation. The company has also invested heavily in AI-powered security capabilities, hiring Phil Tee as EVP of AI Innovations and developing solutions for securing generative AI applications and data. This includes AI Analytics Solutions, data protection for AI workloads, and AI-powered threat detection capabilities that leverage the platform's massive data advantage. On the go-to-market front, Zscaler has transitioned from an opportunity-centric to an account-centric sales approach, appointing Mike Rich as Chief Revenue Officer and restructuring sales teams around major accounts rather than individual deals. The company has significantly expanded partnerships with Global System Integrators and increased focus on vertical markets, particularly federal government and healthcare sectors. Product development has accelerated with emerging products now representing 22-25% of new business, including Zero Trust Branch solutions targeting firewall replacement, workload protection for cloud applications, and comprehensive data protection capabilities. The company has also enhanced its digital experience monitoring through ZDX and expanded into security operations with Risk 360 and unified vulnerability management capabilities.
ZS company profile · for informational purposes only — not investment advice.
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