Zscaler Inc

Zscaler Inc

ZS

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Market Cap$22.6B
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Zscaler IncZscaler Inc-290.2--3%7.11.7

Earnings Call Q3 2026

May 26, 2026 - AI Summary

Strong Q3 performance; ARR growth and margin leverage - Revenue $850M, +25% YoY and +4% QoQ, exceeding the high end of guidance. - ARR grew +25% YoY to $3.5B; net new ARR $166M (+24% YoY). - Non-GAAP operating margin hit 23%, up +140 bps YoY (record/“all time high” leverage). - Free cash flow (FCF) margin: 16% in Q3 (down from 18% YoY) due to timing of cash collections; 29% FCF margin YTD.
Momentum driven by “Zero Trust Everywhere” and AI security; major customer/partner wins - Company positions Zscaler as the “cybersecurity platform for the AI era” with a differentiated architecture: hide apps/data (reduce attack surface) and eliminate lateral movement (reduce blast radius); claims scale via a large zero-trust exchange (160 public exchanges; 500B+ transactions/day). - Product/market traction examples cited: - $100M+ bookings for AI Protect over past 12 months; a 7-figure upsell with a Fortune 500 fintech for AI discovery/guardrails/red teaming. - Data security momentum: data security ARR >$500M, up 30%+ YoY. - Zero Trust Branch: largest branch deal in company history—8-figure upsell to deploy across ~2,000 sites, displacing firewall/VPN incumbents; Zero Trust Branch ARR ~tripled YoY. - Zero Trust Everywhere enterprises: >700 exiting Q3 vs ~550 in Q2. - Partnerships/opportunities: - GSI momentum and “Project AI Guardian” to extend Zero Trust to AI assets/agents. - Cloud marketplace TCV ~$900M YTD, >2x YoY.
AI/agent risk framing + strategic moves (opportunities) - Management argues AI agents and frontier models will accelerate exploitation: unpatched vulnerabilities and faster discovery/attack automation increase urgency for attack-surface hiding and lateral movement prevention. - Planned acquisition of Symmetry Systems (intent announced May 21): maps an “access graph” of identities ↔ applications ↔ data sources; integrating with Zscaler’s zero-trust exchange. - Partnerships with Anthropic (Project Glasswing) and OpenAI (Daybreak / formerly TAC) to proactively harden systems. - Stated expectation: AI is one of the strongest tailwinds for long-term growth; near-term pipeline impact expected more in fiscal 27 than Q4.

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$201.91

Target Price by Analysts

50.3% upsideZscaler Target Price DetailsTarget Price
$142.35

Current Fair Value

5.9% upside

Undervalued by 5.9% based on the discounted cash flow analysis.

Share Statistics

Market cap$22.60 Billion
Enterprise Value$25.57 Billion
Dividend Yield$- (-)
Earnings per Share$-0.27
Beta0.96
Outstanding Shares160,741,000

Return

Return on Equity-3.27%ROE
Return on Assets-1.09%
Return on Invested Capital-0.71%

Valuation & Multiples

P/E Ratio-290.23P/E Ratio
PEG-122.69PEG
Price to Sales7.07Price to Sales
Price to Book Ratio9.6Price to Book Ratio
Enterprise Value to Revenue8.06
Enterprise Value to EBIT-785.71
Enterprise Value to Net Income-331
Total Debt to Enterprise0.15
Debt to Equity1.67Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
May 28, 2026
EPS Estimate
$1.00
Average shareholder expectation
Revenue Estimate
$835.55 M
Average shareholder expectation

Next Earnings Call

Expected Date
June 4, 2026
EPS Estimate
$1.00
Average shareholder expectation
Revenue Estimate
$835.55 M
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio0.9766 7.59%
Total Calls5,513,782 1.04%
Total Puts5,384,643 6.25%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %53.72% 0.14%
Total Invested$12.03B 37.36%
Investors Holding811 154.00%

ESG Score

No data

About Zscaler Inc

1,480 employees
CEO: Jagtar Chaudhry

Zscaler accelerates digital transformation so customers can be more agile, efficient, resilient, and secure. The Zscaler Zero Trust Exchange protects thousands of customers from cyberattacks and data loss by securely connecting users, de...

Relevant Senate Committees

Joint Committee on Taxation

This committee provides the official revenue estimates and technical analysis for all tax legislation, directly influencing corporate tax structures and capital investment credits. Its expertise and reports directly inform and shape tax policy that impacts Zscaler's financial health and strategic planning.

Finance

This powerful committee controls taxation and trade. Changes in corporate tax policy (e.g., R&D credits, corporate tax rates) directly impact Zscaler's profitability and investment decisions. Trade policy, including data localization requirements or digital services taxes, could also significantly affect its global cloud platform operations.

Appropriations

This committee directly allocates discretionary federal spending across all government agencies. Its subcommittees determine the precise funding for IT and cybersecurity programs, directly affecting federal contracts and order books for companies like Zscaler that serve the government sector.

Armed Services

This committee oversees the Department of Defense (DoD) and authorizes the annual National Defense Authorization Act (NDAA). The DoD is a significant procurer of advanced cybersecurity, including Zero Trust and cloud-based security solutions, directly impacting Zscaler's potential revenue streams and R&D funding for military technologies.

Select Committee on Intelligence

Members receive classified briefings on global cyber threats and vulnerabilities. Given Zscaler's role in cybersecurity, cloud security, and data protection, such non-public material information about threat landscapes or national security priorities would be highly relevant to the demand for and development of Zscaler's services.

Commerce, Science, and Transportation

This committee has vast jurisdiction over interstate commerce, the FCC, and FTC. It directly impacts 'Big Tech' through privacy laws, data protection regulations (crucial for Zscaler's data processing platform), and telecommunications policy. These regulations can directly shape the legal and operational environment for Zscaler.

Homeland Security and Governmental Affairs

This committee directly regulates federal procurement and efficiency, which includes cybersecurity contracts for the executive branch and DHS. Zscaler's Zero Trust Exchange is a critical solution for federal agencies, meaning committee members would have direct insight into government demand and funding for Zscaler's services, as well as emerging risks like AI in financial markets that Zscaler aims to secure.