
Zscaler (ZS) Stock Forecast & Price Target
Zscaler (ZS) Analyst Ratings
Bulls say
Zscaler has reported significant growth in its annual recurring revenue (ARR), achieving $425 million in datasecurity for the fourth quarter of FY25, which marks an increase of $75 million from the previous quarter. Additionally, Zscaler's Z-Flex program has shown robust performance with over $100 million in total contract value (TCV) bookings for the fourth quarter, representing a 50% increase sequentially, contributing to a strengthened pipeline for future growth. The firm has also demonstrated improved non-GAAP operating margins and free cash flow margins over the past four years, driven by strong revenue growth and enhanced operating leverage, indicating a solid financial foundation for continued expansion.
Bears say
Zscaler is experiencing a significant slowdown in revenue growth, with projections indicating a decline to approximately 19% year-over-year for FY26, compared to 23% in FY25 and a peak of 62% in FY22. The company's total revenue growth has now settled in the low 20% range amidst escalating budget scrutiny and tougher market comparisons, which reflects a broader trend of deceleration typical for firms transitioning from hypergrowth to a more sustainable growth phase. Additionally, Zscaler's performance in the competitive landscape is underwhelming, as well as its recent declines in job postings, suggesting potential challenges in maintaining momentum within a stagnant growth environment.
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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