Zscaler Stock Analysis
| ZS Stock | USD 148.87 -3.26 -2.14% |
200 Day MA 230.18 | 50 Day MA 142.7 | Beta 0.96 |
Macro event markers
At the current market price of $148.87, ZS trades below the analyst target price of $224.12. For ZS, the valuation setup centers on whether current pricing reflects persistent margin pressure and the company's ability to stabilize free cash flow under a highly leveraged capital structure. ZS combines negative profitability with elevated leverage relative to information technology peers, making debt serviceability and margin recovery the primary analytical focus.
ZS holds a debt-to-equity ratio of 1.82 relative to information technology peers. Using the latest reported data from December 31, 2025, Net Debt is holding steady around $-533.2 million, meaning cash and equivalents exceed total debt — leverage is not a constraint, while Net Debt To EBITDA is staying broadly flat near -6.06x; rather than measuring leverage, the negative ratio signals that Zscaler's cash exceeds outstanding debt. For Zscaler, declining interest coverage over multiple quarters is an earlier warning signal than the debt-to-equity ratio alone. Rising interest expense relative to EBITDA signals that debt service is consuming a growing share of cash flow. Asset vs Debt
Equity vs Debt
Price Book 11.14 | Price Sales 8.15 | Shares Float 104.21 million | Wall Street Target Price 224.12 | Earnings Share -0.43 |
Latest disclosures for Zscaler show $2.7 billion in Total Revenue, a net loss of $41.5 million, and $413 thousand in Non Operating Income Net Other.
Zscaler |
Stock Analysis Notes
About 35.0% of ZS outstanding shares are owned by insiders. ZS has Price/Earnings To Growth (PEG) ratio of 1.64. Zscaler reported a loss per share of 0.43. ZS had not issued any dividends in recent years. Latest disclosures for Zscaler show $0.04 in Intangibles To Total Assets, $6.4 billion in Total Assets, and a Return On Assets of -0.6%.Price To Sales Ratio | 25.06 |
Investor Insights and Alerts
| Zscaler generated a negative expected return over the last 90 days | |
| Zscaler has high historical volatility and very poor performance | |
| ZS generated yearly revenue of $2.67 billion. Annual Net Loss to common stockholders was -$41.48 million with gross profit of $2.3 billion. | |
| About 35.0% of ZS outstanding shares are owned by insiders | |
| Latest headline from simplywall.st: Assessing Zscaler Valuation After Sector Momentum And Upcoming Q 3 Earnings |
Largest EPS Surprises
For Zscaler, each quarterly earnings release acts as a market reset. The gap between what analysts expect and what the company delivers is one of the most direct drivers of short-term repricing. For this stock, read EPS surprises with profitability quality and forward revisions.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2022-02-24 | 2022-01-31 | 0.11 | 0.13 | 0.02 | 18 | ||
2021-11-30 | 2021-10-31 | 0.12 | 0.14 | 0.02 | 16 | ||
2021-02-25 | 2021-01-31 | 0.08 | 0.1 | 0.02 | 25 |
Environmental, Social, and Governance (ESG) Scores
ESG analysis for Zscaler goes beyond values-based screening. It highlights practices with real financial consequences. Trend direction often matters more than one isolated ESG reading taken out of context.
Top Institutional Investors Holding Zscaler Stock
Annual revenue is about 2.67 billion. How Zscaler's institutional base reacts to earnings changes can move the stock in the short term. Shares outstanding are near 160.79 million. The insider stake is large enough to signal management alignment, which can steady the price during sell-offs.
| Shares | Aqr Capital Management Llc | 2025-12-31 | 1.6 M | Tiger Technology Management Llc | 2025-12-31 | 1.6 M | Morgan Stanley - Brokerage Accounts | 2025-12-31 | 1.6 M | Amvescap Plc. | 2025-12-31 | 1.5 M | Federated Hermes Inc | 2025-12-31 | 1.2 M | Ing Investment Management Llc | 2025-12-31 | 950.9 K | Barclays Plc | 2025-12-31 | 727.4 K | Northern Trust Corp | 2025-12-31 | 680.4 K | Amundi | 2025-12-31 | 676.8 K | Vanguard Group Inc | 2025-12-31 | 11.4 M | Blackrock Inc | 2025-12-31 | 7.8 M |
Market Capitalization
Market capitalization for Zscaler is about $24.46 billion, leaving the company classified as large-cap across systems software companies. Additional sizing evidence includes about 160.79 million shares outstanding, a workforce of about 7,923 people, and enterprise value near $22.81 billion.Profitability
Understanding Zscaler's profitability goes beyond headline earnings. Margin durability, leverage, and capital needs all matter. The key question is whether current profitability is lasting, cyclical, or boosted by items that may not repeat. ZS has Net Profit Margin (PM) of -2.0%. Likewise, it shows Net Operating Margin (NOM) of -6.0%.| Last Reported | End Of Year Estimate | ||
| Return On Tangible Assets | -0.01 | -0.01 | |
| Return On Capital Employed | -0.03 | -0.03 | |
| Return On Assets | -1.00% | -1.00% | |
| Return On Equity | -2.00% | -2.00% |
Management Efficiency
ZS has Return on Asset (ROA) of -1.41% indicating negative asset-level profitability for it. Below zero, indicating a loss position. Zscaler also reports a return on total equity (ROE) of -3.56%, which implies that shareholder value decreased during the period.| Last Reported | End Of Year Estimate | ||
| Book Value Per Share | 10.49 | 11.01 | |
| Tangible Book Value Per Share | 7.78 | 8.17 | |
| Price Book Value Ratio | 22.05x | 25.45x | |
| Enterprise Value Multiple | 445.01x | 432.94x | |
| Price Fair Value | 22.05x | 25.45x |
The management picture for Zscaler becomes most actionable when executive decisions are compared with financial outcomes rather than with presentation language alone. In practice, management analysis provides context for determining whether recent results reflect skill, favorable timing, or a mix of both.
Operating Margin | Long Term Debt Total | Three Month Return -12.94 | Short Long Term Debt Total | Ten Year Return 351.12 |
Technical Drivers
As of the 12th of May 2026, Zscaler indicates a price level of 148.87 per share. Price-based signals reflect Mean Deviation of 2.87, standard deviation of 4.06, and Market Risk Adjusted Performance of -0.45. The model quantifies price stability and directional movement. Relative volatility positioning is benchmarked against peers.Price Movement Analysis - Bollinger Bands
This analysis covers thirty-eight data points across the selected time horizon. Bollinger Bands frame Zscaler price range using a moving average and volatility bands. Movement toward the lower band may indicate short-term downside pressure, while approaches to the upper band can reflect resistance levels or momentum continuation.
Insider Trading Activities
The analytical value in Zscaler's insider filings lies in transaction clustering, trade size, and timing relative to price movements rather than any single filing. At large-cap scale, institutional coverage and secondary-market liquidity are typically well established. These records work best as context, not as standalone buy-or-sell signals.
Outstanding Bonds
Reviewing Zscaler bond obligations provides context for understanding how much of the business is financed with fixed-income capital rather than purely with equity. Maturity profile, refinancing windows, and coupon burden can all affect how resilient the capital structure looks in a weaker market.
| US98981BAA08 Corp BondUS98981BAA08 | View | |
| MPLX LP 4125 Corp BondUS55336VAK61 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| US98980BAA17 Corp BondUS98980BAA17 | View | |
| Morgan Stanley Jul Corp BondUS61744YAK47 | View | |
| Morgan Stanley 3971 Corp BondUS61744YAL20 | View | |
| MGM Resorts International Corp BondUS552953CD18 | View | |
| Valero Energy Partners Corp BondUS91914JAA07 | View |
Predictive Daily Indicators
Daily signals in Zscaler help active traders track momentum, reversals, and volume pressure during the session. For most traders, the benefit is faster feedback on momentum, which sharpens both entries and exits.
| Accumulation Distribution | 95443.8 | |||
| Daily Balance Of Power | -0.56 | |||
| Rate Of Daily Change | 0.98 | |||
| Day Median Price | 150.56 | |||
| Day Typical Price | 149.99 | |||
| Price Action Indicator | -3.31 | |||
| Period Momentum Indicator | -3.26 | |||
| Relative Strength Index | 51.86 |
Corporate Filings
8K | 16th of April 2026 Report filed with the SEC to announce major events that shareholders should know about | |
13A | 27th of March 2026 An amended filing to the original Schedule 13G | |
F4 | 19th of March 2026 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | |
F4 | 18th of March 2026 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | |
8K | 26th of February 2026 Report filed with the SEC to announce major events that shareholders should know about | |
8K | 15th of January 2026 Report filed with the SEC to announce major events that shareholders should know about | |
F4 | 13th of January 2026 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | |
F4 | 2nd of January 2026 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities |
Forecast Models
Quantitative tools for Zscaler focus on observed patterns, which helps when markets move faster than research can update. The practical edge is not the forecast number itself, but knowing when the data is becoming less predictable.Financial Strength and Earnings Quality Indicators
Zscaler financial ratings play a critical role in determining how much Zscaler has to pay to access credit markets, i.e., the amount of interest on their issued debt. The threshold between investment-grade and speculative-grade ratings has important market implications for Zscaler's borrowing costs.| Piotroski F Score | 5 | Healthy | View |
| Beneish M Score | -3.30 | Unlikely Manipulator | View |
Debt to Cash Allocation
Tracking debt and cash allocation over time can show when Zscaler is prioritizing expansion, refinancing, or capital return.
Total debt stands at approximately $1.8 billion with total debt to equity ratio (D/E) of 1.82. Zscaler has a current ratio of 1.95, which is generally considered normal. Debt serves as one financing mechanism for Zscaler, though the impact on returns depends on execution and market conditions. Total Assets Over Time
Assets Financed by Debt
Debt finances 40.0% of ZS's total assets — a relatively low share of the asset base, though leverage can still appear elevated relative to peers when measured against equity rather than total assets.Zscaler Debt Ratio | 40.0 |
Corporate Bonds Issued
Zscaler Net Debt
Net Debt | $-506.54 million |
Stock Analysis Methodology
As a large-cap equity, Zscaler diagnostic profile covers valuation ratios, fundamentals, and technical signals. Zscaler operates in Systems Software within Software - Infrastructure in Information Technology. Zscaler trades at P/B of 11.14, P/S of 8.15. Zscaler shows ROE (TTM) of -3.56% and net margin (TTM) of -2.25%.
Zscaler inputs come from periodic company reporting and market reference feeds and are mapped into a consistent reporting framework. Professional analyst research is incorporated when coverage is available.
Editorial review and methodology oversight provided by: Ellen Johnson, Member of Macroaxis Editorial Board
Current Zscaler Analyst Rating Consensus
| Target Price | Consensus | # of Analysts | |
| 224.12 | Strong Buy | 46 | Odds |
Historical and current analyst recommendations for Zscaler are aggregated from multiple sources. An average of analyst recommendations is provided for Zscaler as a summary metric. Analyst recommendations for Zscaler carry significant weight, particularly when a large brokerage changes coverage. Understanding how Zscaler's consensus rating has evolved provides context for evaluating analyst sentiment.
Zscaler Stock Analysis Indicators
Diagnostics snapshot includes 18 indicators such as Begin Period Cash Flow, Long Term Debt, Common Stock Shares Outstanding.
| Begin Period Cash Flow | 1.42 billion | |
| Long Term Debt | 1.7 billion | |
| Common Stock Shares Outstanding | 154.4 million | |
| Total Stockholder Equity | 1.8 billion | |
| Total Cashflows From Investing Activities | -427.02 million | |
| Tax Provision | 23.19 million | |
| Property Plant And Equipment Net | 633.15 million | |
| Cash And Short Term Investments | 3.57 billion | |
| Cash | 2.39 billion | |
| Accounts Payable | 46.91 million | |
| Net Debt | -592.45 million | |
| 50 Day M A | 142.6966 | |
| Total Current Liabilities | 2.43 billion | |
| Other Operating Expenses | 2.8 billion | |
| Non Current Assets Total | 1.53 billion | |
| Forward Price Earnings | 32.6797 | |
| Non Currrent Assets Other | 427.4 million | |
| Stock Based Compensation | 661.35 million |