Added to YB: 2026-03-03
Pitch date: 2026-02-27
ZS [bullish]
Zscaler, Inc.
+5.8%
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 Zscaler Internet Access, which provides threat protection, cloud sandbox, and cloud browser isolation; Zscaler Private Access solution that includes cyberthreat and data protection, application discovery, secure application access, application segmentation, application protection, reduced attack surface, and browser isolation; Zero Trust Firewall; Cloud Sandbox; and Zero Trust Browser.
Market Cap
$23.6B
Pitch Price
$146.19
Price Target
213.00 (+38%)
Dividend
N/A
EV/EBITDA
529.94
P/E
-342.14
EV/Sales
7.33
Sector
Software
Category
growth
Zscaler 2QFY26 Earnings: The Penalty Box and the Pattern
ZS (earnings): Q2 rev +26% (best in 2yrs), Rule of 62, all metrics beat but stock -10% on organic guide math (Red Canary +$35M vs total raise +$24M). Z-Flex TCV $290M (+66% seq), 30%+ of RPO, avg 4yr deals w/ 3x spend expansion. Non-seat consumption rev (ZTB, ZTC, AI) 25%+ of new ACV, +100% YoY, scales w/ traffic not headcount. Core ZIA/ZPA mid-teens growth on $2B base. AI agent traffic (MCP requests) ramping. $876M FY26 FCF at 7x NTM rev vs peers 10-15x. Bear: growth to high-teens, 5x = $125. Base: 8x = $192. Bull: consumption scales, 12x = $288. Risks: enforcement layer migrating to endpoint/browser vs cloud proxy, Microsoft Entra competition, growth <20%, Z-Flex stalling, gross margin compression.
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