
Zscaler (ZS) Stock Forecast & Price Target
Zscaler (ZS) Analyst Ratings
Bulls say
Zscaler reported a year-over-year revenue increase of 26%, reaching $788.1 million, surpassing the management's guidance and illustrating strong demand for its cloud-native cybersecurity solutions. The firm anticipates revenue for the fiscal year 2026 to be between $3.282 billion and $3.301 billion, reflecting a robust growth rate of approximately 22.8% to 23.5% year-over-year, which is a revision upward from earlier estimates. Additionally, the company demonstrated impressive growth in remaining performance obligations (RPO), which rose 34.5% year-over-year, contributing to a positive outlook on Zscaler’s continued operational performance and market positioning.
Bears say
Zscaler's stock outlook is negatively influenced by several fundamental issues, including disappointing guidance for fiscal second quarter 2026 in terms of net new annual recurring revenue (NNARR) and operating income, which fell short of market expectations. Additionally, the company's non-GAAP gross margin of 79.9% was slightly below projections, indicating challenges in product optimization for higher margins amidst efforts for speed to market. Furthermore, rising sales force attrition and reliance on cloud platform adoption are potential risks that could hinder the firm's growth and profitability, increasing vulnerability to near-term selling pressure.
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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