Zscaler, Inc. (ZS) Stock

Zscaler, Inc. (ZS) is a Technology stock trading at $149.90 (as of 2026-07-17), with a market capitalization of $24.24B. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Zscaler, Inc. provides cloud security offerings including secure internet access for users, servers, operational technology, and IoT devices to externally managed applications and internet destinations, plus private access to managed applications hosted in data centers and private or public clouds. It also offers digital experience measurement and workload segmentation for application and network traffic protection.

Understand Zscaler, Inc.: how it makes money

Zscaler provides cloud security for secure access to internet destinations and managed applications (ZIA, ZPA), and makes money by selling these cloud-delivered access security services to organizations and their users, servers, and IoT devices.

Because investors track ARR (Annual Recurring Revenue) and ZPA annualized revenue, Zscaler’s profit model is primarily driven by ongoing recurring usage and expansion of its ZIA and ZPA access security services, rather than one-time delivery revenue.

Business quality (Weak): Strong gross margin (77.3%), but operating margin is negative (-3.5%), and there is no clean, mutually exclusive segment breakdown provided here, so the main visibility is through ARR and ZPA annualized revenue.

Bull case

Recurring visibility via operating metrics: ARR (Annual Recurring Revenue) and ZPA annualized revenue are tracked, giving investors operating visibility tied to the company’s access security offerings.
High gross margin profile: Gross margin is reported at 77.3%, which indicates the core delivery economics are efficient even when operating income is not positive.
Broad secure-access product scope: Zscaler Internet Access (ZIA) covers secure access to externally managed applications and internet destinations, while Zscaler Private Access (ZPA) supports access to managed applications hosted in internal data centers and private or public clouds.

Bear case

Negative operating margin: Operating margin is reported at -3.5%, meaning costs and expenses are currently exceeding gross profit.
Limited segment visibility in the provided data: There is no mutually exclusive segment breakdown provided here, which makes it harder to attribute performance to specific product areas beyond the listed operating metrics.
Execution risk in sustaining growth metrics: If ARR (Annual Recurring Revenue) and ZPA annualized revenue do not grow or remain stable, the company’s recurring revenue engine could weaken.

Valuation — source: SEC EDGAR (first-party)
Price	$149.90
Market Cap	$24.24B
EV / EBITDA	1003.0
Price / Book	10.24
Price / Sales	7.64
FCF Yield	8.3%
DCF Value (model)	$157.33
DCF Upside vs Price	5.0%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$2.67B
Net Margin	-1.6%
Revenue Growth (YoY)	25.4%
EPS Growth (YoY)	200.0%
FCF Growth (YoY)	456.4%

Financial Health — source: SEC EDGAR
Altman Z-Score	3.63 (safe)

Valuation vs Sector & Industry
Sector P/E (Technology)	34.7
Industry P/E (Business Services)	30.7

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	VANGUARD GROUP INC ($2.57B)
Institutional Holders Tracked	10
Congressional Trades (recent)	6

Company
Sector	Technology
Industry	Business Services
CEO	Jagtar Singh Chaudhry
Employees	7,348
Country	US
IPO Date	2018-03-16

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Data as of 2026-07-17.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.