
Zscaler (ZS) Stock Forecast & Price Target
Zscaler (ZS) Analyst Ratings
Bulls say
Zscaler reported a robust revenue increase of 26% year-over-year, reaching $788.1 million, surpassing management's guidance and indicating strong demand for its cybersecurity solutions. The company's annual recurring revenue (ARR) is projected to grow by 22.7% to 23.3%, further evidencing its solid revenue base and effective sales strategies, while the remaining performance obligations (RPO) accelerated for the fifth consecutive quarter, demonstrating increased customer retention and commitment. Additionally, Zscaler maintains a high non-GAAP gross margin of approximately 80% and a healthy operating margin, reinforcing the potential for continued profitability amidst its expansion in the cybersecurity market.
Bears say
Zscaler's stock outlook is negatively influenced by a lack of detailed commentary on organic growth and subpar guidance for fiscal second quarter 2026, which fell below consensus expectations. The company's non-GAAP gross margin of 79.9% was slightly under market estimates, reflecting a current prioritization of product optimization over margin enhancement. Additionally, the anticipated longer depreciation period for servers and network equipment suggests potential future pressure on gross margins, combined with historically significant declines in billings during the fiscal third quarter, further amplifying concerns about revenue consistency and growth sustainability.
This aggregate rating is based on analysts' research of Zscaler and is not a guaranteed prediction by Public.com or investment advice.
Zscaler (ZS) Analyst Forecast & Price Prediction
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