Added to YB: 2026-05-29
Pitch date: 2026-05-27
ZS [neutral]
Zscaler, Inc.
+74.18%
current return
Author Info
No bio for this author
Company Info
Zscaler, Inc. operates as a cloud security company worldwide. The company offers cyberthreat protection products, including Zero Trust SASE, a solution that securely connects workforces, AI agents, workloads, and IoT/OT devices to cloud apps and AI services; Zscaler Internet Access, which provides advanced threat protection, sandbox, and zero trust firewall; Zscaler Private Access solution that includes cyberthreat and data protection, application discovery, secure application access, application segmentation, application protection, and reduced attack surface; Zero Trust Browser, a solution that secures browser-based access to business applications for the extended workforce, including third parties and partners; Zscaler Digital Experience, a solution that monitors end-user experience and helps organizations identify and resolve performance issues across their digital environment; Zero Trust Branch; and Zero Trust Cloud solutions.
Market Cap
$38.1B
Pitch Price
$126.55
Price Target
262.00 (+19%)
Dividend
N/A
EV/EBITDA
215.98
P/E
-592.73
EV/Sales
10.89
Sector
Software
Category
growth
Zscaler, Inc. (ZS) — Q3 FY2026 Results
ZS (earnings): Q3 beat w/ $850M rev, ARR +25%, Z-Flex $480M (+60% QoQ), 23% op margin. But stock -21% AH: 2 sales leaders departed end-Q3, mgmt de-risked guide. FY27 rev guide 16-17% (vs Street ~21%) signals harsh deceleration. New logo weakness acknowledged, 2k-10k user coverage gap. CapEx inflating +200bps FY27, FCF margin compressed 350-420bps. Z-Flex $1B+ TTM backlog creates ARR ramp visibility bulls may underweight. Mythos AI threat drove record inbound, but rev impact deferred to FY27. Key uncertainty: is 16-17% guide sandbagged floor (like FY26's 6.7%→9.5% beat) or structural reset? At $146 AH, trades 5.9x FY27 rev, 33x EPS—fair for 16-17% grower, coiled spring if guide conservative. Bull: leadership stabilizes Q1 FY27, Mythos converts, 700+ Zero Trust Everywhere expands 27% QoQ→18-20% actual growth, stock $175-225. Bear: new logo/EMEA weakness structural, Q1 FY27 misses again, settles 5.5x rev→$110-135. Watch Q4 net new ARR ($155-165M guide), FY27 segmentation clarity, Zenith Live (June) for AI security traction. 2yr base: $210 (19.8% IRR), bull $262 (34% IRR), bear $119 (-9% IRR).
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