Zscaler is experiencing challenges in execution with its FY2027 guidance indicating slower revenue and annual recurring revenue (ARR) growth. While Q4 showed solid profit margins and an acceleration in new ARR, overall top-line growth remains weak despite strong demand in the cybersecurity sector. Strategic partnerships with AWS and CrowdStrike could provide long-term growth opportunities, but the company currently lags behind sector leaders in business momentum. Its forward price-to-earnings ratio is near multiyear lows, but the risk/reward balance is neutral due to a high forward price/earnings-to-growth ratio and modest growth outlook.
Zscaler is recommended as a buy due to its strong position in zero-trust cybersecurity, which is crucial as AI-driven cyber threats increase. Although its stock has underperformed recently and growth has slowed to about 25% year-over-year, the compan...
Zscaler remains undervalued despite a sector rebound, down about 20% year-to-date and 30% year-over-year. The company reported strong fiscal results and robust bookings, accelerating its annual recurring revenue (ARR) growth. This growth contradicts ...
Zscaler reported a strong fiscal Q4 with 25% revenue growth and earnings beating expectations, but its fiscal 2027 growth guidance of 16.6% to 17.5% revenue increase disappointed investors, causing its stock to fall 4%. This slowdown contrasts with t...
RBC Capital increased its price target for cybersecurity firm Zscaler to $210, maintaining an "Outperform" rating due to the company's strong financial results and AI innovation. Zscaler reported a 25% rise in revenue and Annual Recurring Revenue, su...
Zscaler reported fiscal Q4 revenue of $898.2 million and adjusted EPS of $1.19, both surpassing analyst expectations. However, its free cash flow fell 65% year-over-year to $60.8 million, missing estimates and causing shares to drop 3.5%. The company...
