ZS
Zscaler, Inc.

Zscaler, Inc.ZS

Technology · Software - Infrastructure
197.66USD
-3.05%
Nov 08, 2026
ZS overview ready
Cloud-native zero-trust access and security service edge provider
Zscaler is a direct, cloud-native provider of zero-trust access and security-service-edge capabilities for enterprise and government customers modernizing remote, branch, cloud, data, and increasingly AI-agent access controls.
Primary theme is weakening
Cybersecurity is weakening (-3.1pp vs SPY over 21 sessions; 8 of 20 members ahead of SPY).
Constructive pullback in an uptrend
Longer-term context reads early trend, with a near-term setup of constructive pullback.
The setup is constructive, but the underlying structure is still poor.
Demanding valuation
Zscaler, Inc. carries a Expensive valuation stance that the scored components do not clearly support.
Unremarkable fundamentals
Primary risk
Intense competition in cloud security market.
Market Nov 6Filing Jul 31Price action Nov 7Research Jul 31

Conviction Level

PriceAction6.6BusinessPerformance5.0BusinessQuality5.3Valuation3.1ThemeMomentum3.0Stable — Revenue is growing at a steady pace (+25% year over year). The company is still loss-making: the diluted loss per share narrowed to -$0.02 from -$0.11 a year earlier. — From filed financial statements. Describes the recent trajectory of the business, not the stock. 20 of the 100 Conviction points.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
CybersecurityWeakening
vs SPY
−3.1pp
Theme return
−8.1%
Beating SPY
8 of 20
21 sessions to Nov 6, 2026 · Theme Leadership V2
Price
Loading price history…

Price Action

Constructive pullback in an uptrend
Longer-term context reads early trend, with a near-term setup of constructive pullback.
The setup is constructive, but the underlying structure is still poor.
EntryBreakout + retest

Price broke through the weekly SMA200, then retested it constructively and recovered — a fresh structural entry rather than a chase.

Key Financials

Market Cap
$32.2B
Avg Volume (60D)
3.0M
60 sessions
Revenue Growth YoY
+25.4%
FY2026 vs FY2025
Gross Margin
+76.8%
Trailing twelve months
Operating Margin
-4.0%
Trailing twelve months
Free Cash Flow Yield
+2.6%
Distance from 200DMA
+18.4%
Next Earnings
2026-12-02
P/E
N/M
Market metrics as of Nov 6, 2026
Financial results for the period ended Jul 31, 2026
Filed balance-sheet data as of Jul 31, 2026

Business Performance

Stable

Revenue is growing at a steady pace (+25% year over year). The company is still loss-making: the diluted loss per share narrowed to -$0.02 from -$0.11 a year earlier.

Latest reported: Q4 FY2026, ended Jul 31
Revenue growthGrowing
+25%
$898M in Q4 FY2026 · YoY
YoY growth, last 4 quarters
  1. +26%
  2. +26%
  3. +25%
  4. +25%
Earnings growthLoss narrowing
-$0.02
Diluted EPS -$0.02 vs -$0.11 a year earlier · GAAP, from the earnings release
Too few comparable EPS quarters: a loss or a turn to profit has no meaningful percentage.
Operating marginStable
-1.7%
+2.8 pp YoY · gross margin 76.7% (+0.7 pp)

Business Quality

5.3 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

One of the two valuation perspectives says expensive; intrinsic is the dissenting view.
Zscaler, Inc. carries a Expensive valuation stance that the scored components do not clearly support. Treat it as unresolved.

Company Research

Thesis
Zscaler is a direct, cloud-native provider of zero-trust access and security-service-edge capabilities for enterprise and government customers modernizing remote, branch, cloud, data, and increasingly AI-agent access controls. ZS has a strong and specific fit to Enterprise Cybersecurity Modernization.
Opportunity
Moderate opportunity
Enterprise replacement of perimeter- and VPN-centric access architectures with cloud-delivered security services that verify access continuously and securely connect users, devices, branches, workloads, and applications.
Key risk
Intense competition in cloud security market.

Economic classification

Loading the economic classification…

Business & Markets

Technology · Software - Infrastructure
What they do

Zscaler, Inc. operates a cloud-native security platform that provides enterprises and governments with secure, zero-trust access to applications, workloads, and devices by replacing traditional perimeter and VPN-based security architectures.

How it earns

The company primarily generates revenue through subscription-based sales of its cloud security services.

Products & services
Zero Trust SASE
Zscaler Internet Access
Zscaler Private Access
Zero Trust Browser
Customers & end markets
Enterprise customers
Government customers
Market position

Leader in cloud-native zero-trust access and security service edge solutions.

Demand drivers
Low cyclicality

Demand for cybersecurity services is relatively stable and driven by ongoing security needs rather than economic cycles.

Related companies

Finding other covered companies in the same part of this story…