Zscaler is rated Strong Buy due to its leadership in Zero Trust cloud security, a sector growing from best practice to regulatory requirement in the US and EU. The company prioritizes growth investments over short-term margin gains, generating a strong 36% free cash flow margin and operating efficiently under the 'Rule of 62.' Recent acquisitions like Red Canary and Symmetry Systems expand its platform into managed detection and AI agent security, positioning Zscaler well for future IT and AI workload growth. This makes it a high-quality software compounder with solid long-term prospects.
Cybersecurity stocks surged after IBM CEO Arvind Krishna highlighted cyber threats as a top concern for customers in the company's preliminary Q2 results. Krishna noted that some major deals were delayed as businesses reconsidered spending due to evo...
Zscaler's stock dropped sharply by 31.5% on May 27, 2026, after the company issued weaker-than-expected guidance and revealed disruptions linked to sales leadership changes. This decline followed concerns about slowing growth, weaker customer expansi...
