
Zscaler (ZS) Stock Forecast & Price Target
Zscaler (ZS) Analyst Ratings
Bulls say
Zscaler has demonstrated strong financial performance, with revenue increasing 26% year-over-year to $788.1 million, surpassing management's guidance and indicating robust demand for its cybersecurity solutions. The firm's Annual Recurring Revenue (ARR) is projected to reach between $3.698 billion and $3.718 billion, reflecting an increase of 22.7% to 23.3% year-over-year, which underscores the consistent expansion in its customer base and product offerings. Additionally, Zscaler has achieved notable growth in its Remaining Performance Obligations (RPO), with a year-over-year increase of 34.5%, signaling a solid pipeline for future revenue generation.
Bears say
Zscaler's stock has experienced a downturn following mixed quarterly guidance, specifically with a notable decline in after-hours trading attributed to insufficient details on organic growth and disappointing net new annual recurring revenue (NNARR) projections. The company's non-GAAP gross margin fell short of market expectations, indicating ongoing challenges in balancing product optimization for speed to market against margin enhancement. Moreover, a concerning pattern of historically high attrition within the sales force poses potential risks to future growth and profitability, further contributing to a negative outlook for the stock.
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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