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US cloud security company providing zero-trust network security that routes and inspects internet/app traffic without VPNs.
US cloud security company providing zero-trust network security that routes and inspects internet/app traffic without VPNs.
Sells security as a subscription, usually on multi-year contracts, and customers can add further modules to the same cloud platform, so much of the growth comes from selling more to accounts it already has. It replaces appliances that companies once bought and ran in their own offices, so it competes for the same budgets as hardware firewall makers.
Moat: narrow (switching costs, scale, network effects). Once traffic is routed through Zscaler's cloud, switching security architecture is a major infrastructure project.
Headquarters: San Jose, California, US · Founded: 2007 · Employees: 8,700
Size Zscaler (ZS) is a United States Information Technology company (Packaged Software) with a market value of $32.2B, the 341st largest of 3,117 United States companies the cockpit tracks. Shares closed at $197.66 on 6 Nov 2026.
Performance Over six months the shares gained 29.9%, against +12.5% for the median peer and -1.1% for the United States market (cap-weighted) — 9th highest of 19 in its peer set.
Growth Revenue grew 25.4% over the last twelve months (peer median +20.8%); the operating margin is -3.6% (peer median 7.6%).
Valuation It trades at 40.5× forward earnings against a peer median of 23.7× (5th most expensive of 17).
Price implies For today's price to make sense, revenue must grow about 21% a year for seven years (Req g). Recent delivered growth is +38%, so the hurdle is -17 pp: the price already allows for a slowdown.
Capital Return on invested capital runs 18.7 points below its cost of capital (8.8% WACC).
Backlog Backlog (remaining performance obligations) was $7.37B at 31 Jul 2026, up 27% on a year earlier — 2.2 years of trailing revenue. Backlog detail →
Credit Zscaler has 1 bond outstanding ($1.73B).
Short interest Short interest is 3.6% of the free float (15 Oct 2026).
Next results Next results expected around 1 Dec 2026 (exchange calendar; dates can move).
| TTM | FY2026 | FY2025 | FY2024 | FY2023 | |
|---|---|---|---|---|---|
| Revenue | $3.35B | $3.35B | $2.67B | $2.17B | $1.62B |
| Revenue growth | — | +25% | +23% | +34% | — |
| Gross profit | $2.56B | $2.56B | $2.05B | $1.69B | $1.25B |
| EBITDA | $68.4M | $69.5M | $1.52M | -$42.9M | -$116M |
| Net income | -$63.2M | -$63.2M | -$41.5M | -$57.7M | -$202M |
| Free cash flow | $779M | $779M | $727M | $585M | $334M |
| Capital expenditure | $351M | $351M | $246M | $195M | $129M |
| Total debt | $1.86B | $1.86B | $1.80B | $1.24B | $1.21B |
The default views of Competitor Analysis ▸ Charts, drawn from the same data. Open them in the cockpit to change the axes, pin companies and read every value.
| Company | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g |
|---|---|---|---|---|---|---|
| Zscaler ZS | $32.2B | +30% | +25% | -4% | 40.5× | 20.7% |
| Palo Alto Networks PANW | $257B | +51% | +24% | 5% | 75.0× | n/a |
| Cloudflare NET | $95.7B | +37% | +34% | -8% | 168.8× | n/a |
| Netskope NTSK | $8.70B | +83% | +30% | -94% | n/a | n/a |
| Cisco CSCO | $369B | -3% | +12% | 25% | 18.4× | 15.0% |
Peer set: Industry: the same industry and sector in any market, nearest in size. This is the same default set the interactive Competitor Analysis opens with.
| Measure | ZS | Peer median | Rank in peer set |
|---|---|---|---|
| 1-month return | -8.8% | +3.3% | 8th lowest of 21 |
| 6-month return | +29.9% | +12.5% | 9th highest of 19 |
| Distance from 52-week high | -40.8% | -24.9% | 6th lowest of 21 |
| Revenue growth (TTM) | +25.4% | +20.8% | 10th highest of 21 |
| Operating margin | -3.6% | 7.6% | 5th lowest of 21 |
| Forward P/E | 40.5× | 23.7× | 5th most expensive of 17 |
| Growth the price implies (Req g, 7 yrs) | 20.7% | 27.9% | 8th least demanding of 16 |
| Growth delivered (Del g) | +37.9% | +23.5% | 3rd highest of 16 |
| Hurdle (Req g minus delivered) | -17.1 pp | +1.7 pp | 4th least demanding of 16 |
| ROIC minus cost of capital | -18.7 pp | -4.3 pp | 4th lowest of 20 |
| Net debt / EBITDA | -23.7× | -0.2× | 2nd least indebted of 18 |
| Company | Market | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g | Delivered g |
|---|---|---|---|---|---|---|---|---|
| Zscaler ZS | United States | $32.2B | +30% | +25% | -4% | 40.5× | 20.7% | +37.9% |
| Twilio TWLO | United States | $31.3B | 0% | +19% | 8% | 30.7× | 38.2% | +23.5% |
| NBIS NBIS | United States | $35.2B | -8% | +461% | -49% | n/a | n/a | n/a |
| Okta OKTA | United States | $29.5B | +101% | +11% | 8% | 41.3× | 39.2% | +28.4% |
| Bending Spoons BSP | United States | $27.9B | n/a | +95% | 21% | 25.6× | 45.5% | +94.7% |
| Amadeus IT AMS.MC | Spain | $27.4B | +18% | +4% | 27% | 17.8× | 4.3% | +24.6% |
| Atlassian TEAM | United States | $38.7B | +5% | +26% | 4% | 28.7× | 44.7% | +25.8% |
| Dassault Systemes DSY.PA | France | $39.0B | +32% | 0% | 26% | 19.2× | 8.3% | +7.0% |
| Z.AI Co., Ltd. -H- Reg S 2513.HK | Hong Kong | $26.5B | -56% | +132% | -272% | n/a | n/a | n/a |
| Zoom Communications ZM | United States | $26.2B | -18% | +5% | 24% | 14.7× | 5.8% | +12.9% |
| CoreWeave CRWV | United States | $25.6B | -59% | +115% | -3% | n/a | n/a | n/a |
| MongoDB MDB | United States | $25.2B | +4% | +25% | -1% | 44.7× | 27.9% | +33.1% |
| Samsara IOT | United States | $24.0B | +38% | +30% | 1% | 48.5× | n/a | n/a |
| Hithink RoyalFlush Information Network 300033.SZ | China | $22.9B | -14% | +48% | 56% | 32.7× | 37.1% | +16.3% |
| Unity Software U | United States | $22.7B | +83% | +14% | -14% | 49.4× | 33.5% | +19.1% |
| Roper Technologies ROP | United States | $47.2B | +39% | +9% | 28% | 19.7× | 12.7% | +10.2% |
| PTC PTC | United States | $21.2B | +33% | +20% | 40% | 21.8× | 10.3% | +8.6% |
| Toast TOST | United States | $20.1B | +38% | +22% | 7% | 20.9× | 28.6% | +49.5% |
| Cerebras Systems CBRS | United States | $20.1B | n/a | +91% | -81% | n/a | n/a | n/a |
| Constellation Software CSU.TO | Canada | $53.3B | +37% | +17% | 16% | 19.7× | 11.2% | +25.0% |
| Autodesk ADSK | United States | $54.7B | +7% | +19% | 23% | 20.1× | 18.1% | +13.7% |
Zscaler has 1 bond outstanding with $1.73B face value.
Zscaler reported $7.37B of remaining performance obligations at 31 Jul 2026, up 27% from a year earlier and up 14% from the previous quarter. That is 2.2 years of trailing revenue already under contract. Book-to-bill last quarter: 2.01.