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Zscaler rated HOLD due to weak FY27 guidance despite strong business momentum and sector value.

Analyst Insights
14 Oct 2026
Seeking Alpha
View Source
Neutral
Zscaler rated HOLD due to weak FY27 guidance despite strong business momentum and sector value.

Zscaler's stock rating remains at HOLD after a recent price surge removed its previous risk/reward advantage. Although the company shows strong business momentum and leads in sector value metrics, its FY27 guidance for net new annual recurring revenue (ARR) is weak, limiting upside potential. Key risks include AI-driven challenges such as seat-based pricing exposure and competition from peers like CrowdStrike and Palo Alto. The rating could be upgraded to BUY if Zscaler's stock falls below $200 or if future reports show net new ARR growth of 17% or more with improved FY27 guidance.

Zscaler's stock trades at USD 228.00 on Pluang, showing a slight decline of 0.29% as of Oct 14, 2026 16:11 WIB. The stock's market cap stands at $36.81 billion, with balanced order activity split evenly between buyers and sellers.

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