
Zscaler (ZS) Stock Forecast & Price Target
Zscaler (ZS) Analyst Ratings
Bulls say
Zscaler is poised for substantial growth driven by favorable trends in the Secure Service Edge (SSE) and Secure Access Service Edge (SASE) markets, supported by an expanding total addressable market (TAM) and an effective partner ecosystem. The company's financial guidance for FY26 indicates a potential revenue increase to approximately $3,730 million, reflecting an organic growth rate of 20.4% year-over-year, significantly strengthening its growth trajectory. Additionally, Zscaler's recent performance highlights double-digit growth months and an expected improvement in organic net new annual recurring revenue (NNARR) growth from 1% in FY25 to 9.5% in FY26, showcasing the firm's healthy core business and evolving product portfolio.
Bears say
Zscaler's financial outlook appears to be negative primarily due to a projected significant deceleration in revenue growth, with expectations for 2025 now at 10-11%, a stark decline from the 40%+ growth experienced in 2024. Additionally, there are concerns regarding execution challenges in the company's emerging pillars and the risk of reduced IT spending negatively impacting demand for Zscaler's services, particularly within its core Secure Software Edge segment. The overall market sentiment has turned sour since the company's FQ1 report, coupled with potential pressures from investor expectations and competition, contributing to a risk of multiple compression for Zscaler's stock.
This aggregate rating is based on analysts' research of Zscaler and is not a guaranteed prediction by Public.com or investment advice.
Zscaler (ZS) Analyst Forecast & Price Prediction
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