
Zscaler (ZS) Stock Forecast & Price Target
Zscaler (ZS) Analyst Ratings
Bulls say
Zscaler achieved a remarkable $425 million in annual recurring revenue (ARR) from its data security offerings in the fourth quarter of FY25, reflecting a significant growth of approximately $75 million from the previous quarter. The company reported over $100 million in total contract value (TCV) bookings from its Z-Flex program, which saw a 50% increase sequentially, further enhancing its sales strategy and expanding its pipeline. Additionally, Zscaler has demonstrated improved non-GAAP operating and free cash flow margins, attributed to strong revenue growth and effective operating leverage, positioning the company favorably for future performance in the cybersecurity market.
Bears say
Zscaler's revenue growth is projected to decelerate significantly, with FY26E guidance estimating a +19% year-over-year increase compared to previous rates of +23% in FY25 and 62% in FY22. Additionally, the company's total revenue is now experiencing low 20%+ year-over-year growth, reflecting challenges in maintaining momentum due to economic headwinds and harsher comparisons against a larger revenue base. Zscaler's job postings have also declined, indicating potential weakening demand and contributing to a cautious outlook as the company transitions from hypergrowth to a more sustainable growth trajectory.
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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