Zscaler has been upgraded to a Strong Buy as it trades at historically low valuations despite strong 26% year-over-year revenue growth and exceeding guidance. The company is expected to maintain high-teens growth and a solid net cash position, with long-term net margins projected at 30%–35% due to operating leverage and AI-driven cost savings. These factors, combined with strong recurring revenue and cybersecurity demand, suggest Zscaler could deliver annual returns above 18% even without valuation multiple expansion. This makes Zscaler an attractive investment opportunity in the cybersecurity sector.
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...
