Zscaler, Inc.

How has the stock done?

Change in closing price from the first day shown, or with Price the closing price itself. Prices: Yahoo Finance, to Nov 12, 2026. Dashed lines: the days the company released earnings (its SEC 8-K filings); EPS estimates: Yahoo Finance. The stock's move after a release runs from the last close before its day to the close the day after (or five days after), so a release before the open counts like one after the close.

Is the business growing?

Quarters: Zscaler, Inc.'s SEC filings, named by the month they end. Fiscal years: Zscaler, Inc.'s annual reports to the SEC.

How it makes money

The company loses $1.9 for every $100 of revenue. Operating expenses exceed all of gross profit.

Each margin is that line of the income statement divided by revenue. Fiscal year: Zscaler, Inc.'s annual reports to the SEC; quarters: SEC filings.

Growth and margins together

Rule of 40 score 50.3 (growth 24.9% + FCF margin 25.4%): strong, clears the 40 line. Stock pay is 24.5% of revenue; counted as a cost, it brings the FCF margin down to 0.9%.

Zscaler trades at 8.9× revenue on 24.9% growth. PLTR grows fastest of its peers, 95.9%, and costs 55.3×.

Growth: revenue in the quarter ended Jul 2026 against the quarter ended Jul 2025. FCF margin: operating cash flow minus capex, over revenue, for the 4 quarters ended Jul 2026. From SEC filings.

Customers

Zscaler's 10-K for the year to Jul 2026 gives the share of revenue of groups of customers, not of any one: Channel Partners (85%) and Direct Customers (15%).

From Zscaler, Inc.'s 10-Q and 10-K filings (XBRL): each customer whose share of revenue a filing tags, under the filing's own label, so “Customer A” in one filing can be another company in the next; a later filing's figures for a period replace an earlier one's. A dash is a group of customers the filing gives (a government's agencies, the largest customers together, all the others): it can include the customers beside it, so the shares need not add up.

Is it expensive?

EV/revenue of 8.9x, below the peer median of 22.9x.

EV/revenue below the peer median of 22.9x: cheaper than its peers.

Compared on enterprise value (market cap plus debt minus cash) per $1 of revenue: for companies that reinvest what they earn or borrow to grow (software, AI data centers), P/E can mislead.

What analysts expect

The average analyst price target is $235, 22% above the current price; 77% of 47 analysts rate it a buy; earnings beat estimates in all of the last 4 quarters.

Buy or Strong Buy: 36 analysts (77%). Sell or Strong Sell: 0.

Over the past year the average of the analysts' latest price targets went from $330.48 to $241.61 (−27%), while ZS went from $308.60 to $193.22 (−37%). In the past three months targets were raised 48 times and never cut. 3 upgrades and 4 downgrades over the year; the latest: Guggenheim moved it to Buy from Neutral on Jun 1, 2026.

The day after each of these reports the stock moved −10.1% (Oct 2025, beat); −5.6% (Jan 2026, beat); −30.7% (Apr 2026, beat); −1.7% (Jul 2026, beat).

For the quarter ending Oct 2026 (Zscaler reports on Dec 2, 2026), analysts expect adjusted earnings of $1.16 a share, 21% more than the $0.96 of a year earlier, and revenue of $938M, up 19% on a year earlier. For the fiscal year ending Jul 2027, they expect adjusted earnings of $4.91 a share, 16% more than the $4.24 of the year before, and revenue of $3.9B, up 17% on the year before.

Targets, ratings and earnings estimates: Yahoo Finance. Rating and target changes: Yahoo Finance's list of upgrades and downgrades. The average target on each day is the average of every listed firm's latest target set in the 180 days before it, so it counts fewer analysts than the average target above, and the band is the middle half of those targets (a quarter of the firms are above it, a quarter below); a target set before a stock split is divided by the split. Expected figures: the average of the analysts' estimates (Yahoo Finance). Their EPS is adjusted, as analysts estimate it, so it is set against the adjusted EPS Yahoo reports for the same quarters, not the GAAP EPS of the growth and valuation sections; revenue against the SEC filings. No change is given against a quarter whose reported EPS was more than 50% off its own estimate (often a one-off gain or charge), nor against a year that counts one. Each estimate is pinned to its fiscal period by the report date or the period's end, and one that cannot be is left out.

Where the cash goes

Generated $850M in free cash flow over the year, with no dividends and no buybacks. All of the cash stays in the company.

Zscaler had 161M diluted shares in the quarter ended Apr 2026, 3.8% more than a year earlier, and 3.4% more each year on average since Oct 2020.

Free cash flow: operating cash flow minus capital spending on property, plant and equipment, from SEC filings. Shares: each quarter's diluted weighted average as filed with the SEC, since the stock's listing and its latest split.

Financial health

Current ratio 1.7, no pressure to repay short-term debt; debt-to-equity 0.7, debt is moderate.

Latest fiscal year balance sheet. Source: Yahoo Finance.

Who holds it

In the filings of 7 funds whose copy leaves ZS out (on the exchange, not in the app yet): Jia Investment Alliance, Swiss National Bank, Mirae Asset Global Investments, Canada Pension Plan Investment Board, Bridgewater Associates, Fisher Asset Management and 1 more.

What did the funds Hunch tracks do?

Of the 83 funds whose 13F filings Hunch reads, 11 held ZS at the end of their latest quarter (for most, Q2 2026). Over that quarter 4 added shares, 4 cut, 2 bought new, 2 sold all and 1 held the same. The largest of them is Norges Bank, 411,216 shares worth $58.0M at Jun 30, 2026, 16.0% more than at Dec 31, 2025.

From the 13F filings of the 83 funds Hunch tracks, not of every institution: each fund's shares of ZS at its latest quarter end against the quarter before, as filed (long positions only, options left out), the quarter before put on the latest quarter's share count across a split. A fund files 45 days after its quarter ends, so some have a newer quarter than others. Value is at the quarter end. Norges Bank filed its 13F for Q1 2026 confidentially, with no holdings made public, so its row compares Q2 2026 with Q4 2025.