ZS— Zscaler, Inc.
NasdaqGSTechnology · Software - Infrastructure
Zscaler, Inc. (ZS) stock trades at $126.17, up 1.70% on the day. With a market capitalization of $20.40 billion, ZS is a large-cap technology stock. It trades at a forward P/E of 27.4 and earnings per share (EPS) of $-0.48. Over the most recent period the company reported 25% year-over-year revenue growth and a net profit margin of -2.4%. Below you'll find ZS's full fundamentals, fair-value estimates, dividend history, earnings and our buy, hold or avoid verdict for 2026.
Price & Performance
Performance
Analysis & Verdict
Zscaler, Inc. (ZS) Stock Analysis 2026
Rule-based · Updated daily · Not financial advice
Zscaler, Inc. (ZS) operates in the Software - Infrastructure space within the Technology sector. With a market cap of $20.4B, it qualifies as a mid-cap company. Revenue is expanding quickly, but the company has yet to translate that growth into consistent profits — a common risk in high-growth early-stage businesses.
- Revenue grew 25% year-over-year — exceptional top-line expansion
- Price is near its 52-week low — potential entry point with asymmetric upside
- Negative profit margin of -2.4% — company is currently unprofitable
- Negative ROE of -3.7% — shareholder equity is being eroded
- High debt-to-equity of 78.94× increases financial risk, especially with elevated interest rates
- No dividend history — total return depends entirely on price appreciation
Verdict
Avoid
Significant fundamental concerns outweigh positives. High risk at current levels.
AI Insight
Powered by ClaudeAI-generated analysis for informational purposes only. Not financial advice.
Fair Value Estimates
Current price: $126.17
Graham Number
√(22.5 × EPS × Book Value)
N/A
Benjamin Graham's intrinsic value formula. Assumes a fair stock trades at no more than 22.5× the product of EPS and book value per share.
Bazin Ceiling Price
Avg. Annual DPS (5Y) ÷ 6%
N/A
Décio Bazin's dividend-based ceiling. The max price you should pay so that dividends alone deliver at least 6% annual yield on your cost basis.
These are simplified estimates. Not financial advice.
Buy & Hold Checklist
Quality criteria for long-term holding
3/10
43% score
Pays dividends
No dividend history found
Dividend consistency (5Y+)
Uninterrupted dividend payments for at least 5 years
ROE above 10%
-3.7%Return on equity — measures how efficiently capital is used
Positive profit margin
-2.4%Net profit margin must be positive — company earns more than it spends
Revenue growth (annual)
+25.4%Annual revenue must be growing compared to the prior year
Earnings growth (annual)
Annual earnings must be growing compared to the prior year
Debt/Equity below 2×
78.94×Low financial leverage reduces risk of distress
Current ratio above 1
1.86×Short-term assets must cover short-term liabilities
Daily liquidity above $5M
$588M/dayHigh trading volume ensures easy entry and exit
Dividend yield above 0%
Stock must distribute income to shareholders
Financials
Revenue & Results
Key Statistics
Earnings
EPS (TTM)
$-0.48
P/E (TTM)
—
Fwd P/E
27.4
SEC Filings & Reported Financials
Earnings History
SEC EDGAR · official filings
SEC Filings
Official EDGAR documents
Insider Transactions
SEC Form 4 · officers, directors & 10% owners
Dividends & Income
Dividends
This stock does not pay dividends.
Tools & Simulators
If You Had Invested…
Hypothetical return based on historical prices
* Dividend reinvestment calculated at ex-date price. For informational purposes only.
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About Zscaler, Inc.
Zscaler, Inc. operates as a cloud security company worldwide. The company offers cyberthreat protection products, including Zscaler Internet Access, which provides threat protection, cloud sandbox, and cloud browser isolation; Zscaler Private Access solution that includes cyberthreat and data protection, application discovery, secure application access, application segmentation, application protection, reduced attack surface, and browser isolation; Zero Trust Firewall; Cloud Sandbox; and Zero Trust Browser. It also provides data security products, such as web and email DLP, endpoint DLP, BYOD security, multi-mode CASB, unified SaaS security, DSPM, AI-SPM, public gen AI security, and Microsoft Copilot data protection; Zero Trust Cloud solution. In addition, the company offers Zero Trust Branch comprising Zero Trust SD-WAN; IoT/OT segmentation; privileged remote access; Zscaler Cellular; and Zscaler Digital Experience that measures end-to-end user experience across business applications, as well as provides an easy-to-understand digital experience score for each user, application, and location within an enterprise. Further, it provides security operations products, including data fabric for security; asset exposure management; Risk360; unified vulnerability management; deception; managed detection and response; and managed threat hunting. Additionally, the company offers Zero Trust Gateway, a fully managed Zscaler service. It serves the automotive, airlines and transportation, conglomerates, consumer goods and retail, energy, financial services, healthcare, insurance, manufacturing, media and communications, public sector and education, technology, and telecommunications services industries. The company was formerly known as SafeChannel, Inc., and changed its name to Zscaler, Inc. in August 2008. Zscaler, Inc. was incorporated in 2007 and is headquartered in San Jose, California.
Sector
Technology
Industry
Software - Infrastructure
Location
San Jose, United States
Employees
7,923
ZS — Frequently Asked Questions
Is Zscaler, Inc. (ZS) a good stock to buy in 2026?
Zscaler, Inc. (ZS) shows strengths such as revenue growth of 25%, while risks include negative profit margins and high leverage (debt/equity of 78.9). Whether ZS is a good buy in 2026 depends on your time horizon and risk tolerance — review the full bull case, bear case and fair-value estimates above. This is informational analysis, not financial advice.
What is ZS's stock price today?
Zscaler, Inc. (ZS) trades at $126.17, up 1.70% on the session. Prices on this page update throughout the trading day.
Does ZS pay a dividend?
No. Zscaler, Inc. (ZS) does not currently pay a dividend, so the return comes entirely from share-price appreciation.
What is ZS's market cap?
Zscaler, Inc. (ZS) has a market capitalization of $20.40 billion, classifying it as a large-cap stock in the Technology sector.
Disclaimer: This page — including any buy/hold/avoid view, fair value or price estimate — is generated from market data for informational and educational purposes only and does not constitute financial, investment or trading advice. Data may be delayed or inaccurate. Always do your own research and consult a licensed financial advisor before making any investment decision.