Financial Performance Analysis of Okta and Zscaler
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 22 2026
0mins
Should l Buy ZS?
Source: NASDAQ.COM
- Okta Revenue Growth: Okta reported a 12% year-over-year revenue increase for fiscal 2026, nearing $3 billion in subscription revenue, demonstrating resilience in the market despite facing threats from artificial intelligence.
- Zscaler Financial Performance: Zscaler's second-quarter revenue for fiscal 2026 reached $815.8 million, reflecting a 26% year-over-year increase, with annual recurring revenue growing 25% to $3.3 billion, showcasing its competitiveness in the rapidly expanding cybersecurity market.
- Changing Growth Expectations: Okta anticipates a slowdown in revenue growth to 9% for fiscal 2027, while Zscaler has revised its fiscal 2026 revenue growth forecast upward to 24%, indicating a stronger growth trajectory for Zscaler in the market.
- Investment Value Assessment: Although Okta's stock has dropped 30%, it may be undervalued, while Zscaler's stock has also declined by 20%, yet its financial metrics present a more appealing investment opportunity, particularly in AI-driven security products.
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Analyst Views on ZS
Wall Street analysts forecast ZS stock price to rise
30 Analyst Rating
24 Buy
6 Hold
0 Sell
Strong Buy
Current: 133.160
Low
260.00
Averages
325.62
High
390.00
Current: 133.160
Low
260.00
Averages
325.62
High
390.00
About ZS
Zscaler, Inc. is a cloud security company. The Company has developed a platform incorporating core security functionalities needed to enable fast and secure access to cloud resources based on identity, context and an organization’s policies. Its Zscaler Zero Trust Exchange platform protects thousands of customers from cyberattacks and data loss by securely connecting users, devices, and applications in any location. Its solution is a purpose-built, multi-tenant, distributed cloud platform that incorporates the security functionality needed to enable users, applications, and devices to safely and efficiently utilize authorized applications and services based on an organization’s business policies. It delivers its solutions using a software-as-a-service (SaaS) business model and sells subscriptions to customers to access its cloud platform, together with related support services. It offers a security platform that combines its platform with automated security operations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Oil Price Surge: WTI crude oil prices surged over 5% due to fears surrounding the Iran conflict, which not only exacerbates inflation expectations but may also compel the Federal Reserve to tighten monetary policy, impacting overall economic growth.
- Consumer Sentiment Drop: The University of Michigan's consumer sentiment index was revised down to 53.3 from 55.5, below the expected 54.0, reflecting a pessimistic outlook among consumers regarding future economic conditions, potentially suppressing consumer spending.
- Escalating US-China Trade Tensions: China launched investigations into US trade practices targeting restrictions on Chinese goods, which could further disrupt global supply chains and increase market uncertainty.
See More
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- Chip Stock Declines: AI chipmaker Nvidia (NVDA) saw its shares fall about 2%, while Advanced Micro Devices (AMD) closed down 0.87% after dropping nearly 3% earlier in the day, reflecting growing concerns in the tech sector.
- Winners vs. Losers: Despite the overall market downturn, Arm Holdings (ARM) gained 8.50% this week, emerging as a winner in the semiconductor space, demonstrating resilience amid market volatility.
- Market Sentiment Impact: Four out of the top five Nasdaq losers this week were from the technology sector, indicating a weakening investor sentiment towards the industry, which could lead to broader market corrections.
See More
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- Put Option Trading Insights: For the $7.50 strike put option expiring on May 15, 2026, 2,218 contracts were traded today, representing about 221,800 underlying shares, indicating a cautious investor sentiment regarding Burford's future performance.
See More
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- Rising Inflation Expectations: The University of Michigan's consumer sentiment index was revised down to 53.3 from 55.5, below expectations, while 1-year inflation expectations increased to 3.8%, indicating market fears of rising prices that could prompt the Fed to tighten monetary policy.
- Surging Energy Prices: Crude oil prices rose over 3% due to disruptions in global oil supply caused by the Iran conflict, with the IEA warning that the war could cut global oil supply by 8 million barrels per day, exacerbating inflationary pressures.
- US-China Trade Tensions: China launched investigations into US trade practices in retaliation for similar probes by the Trump administration, potentially impacting global supply chains and increasing market uncertainty, further undermining investor confidence.
See More
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- Data Leak Raises Concerns: Anthropic inadvertently exposed nearly 3,000 draft assets, including details of its latest AI model, “Claude Mythos,” which may undermine client trust in data security, potentially affecting future customer acquisition and retention.
- Launch of New Model “Capybara”: The newly introduced “Capybara” model significantly outperforms existing Opus models in coding, academic reasoning, and cybersecurity tests, which could attract more enterprise clients but also heightens potential cybersecurity risks.
- Market Reaction is Severe: Following the announcement, shares of major cybersecurity firms like CrowdStrike and Palo Alto Networks fell by 5%, while Okta and Zscaler saw declines of 6%, reflecting investor concerns over the security threats posed by AI technologies.
- AI as a Risk Multiplier: Stephens noted that the market may be overreacting to reports about the “Mythos” model, emphasizing that the enhanced cyber capabilities of AI could be misused for attacks rather than replacing existing cybersecurity platforms, thereby reinforcing the demand for cybersecurity solutions.
See More
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- Market Decline: The S&P 500 index fell by 0.74% and the Nasdaq 100 dropped by 0.94%, reflecting investor concerns over the prolonged Iran war, which may impact future investment decisions and market stability.
- Surging Energy Prices: The International Energy Agency warns that the ongoing conflict could disrupt global oil supply by 8 million barrels per day, potentially pushing crude prices above the 2008 record high of nearly $150 per barrel, thereby exacerbating inflationary pressures.
- Rising Bond Yields: The 10-year U.S. Treasury yield reached an 8.25-month high of 4.48%, indicating heightened expectations for future interest rate hikes, which could compel the Federal Reserve to adopt a tighter monetary policy to combat persistent inflation.
- Escalating U.S.-China Trade Tensions: China has launched investigations into U.S. trade practices, targeting restrictions on Chinese goods, which may further escalate trade frictions and disrupt global supply chain stability.
See More
