Zscaler: An Emerging Winner in Cloud Security
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: seekingalpha
- Earnings Preview: Zscaler is set to release its Q3 2026 earnings, with market expectations indicating continued strong double-digit growth, reflecting the company's sustained competitiveness and robust demand in the cloud security sector.
- Market Outlook: As demand for cloud security continues to rise, Zscaler is viewed as an attractive investment opportunity, particularly with the push from AI technologies expected to further enhance its market share and growth potential.
- Competitive Edge: Zscaler demonstrates significant growth potential in the cloud security market, especially when compared to competitors like CRM, SNOW, and DELL, showcasing its unique technological advantages and market positioning.
- Investor Interest: With the earnings release approaching, investor interest in Zscaler is increasing, and the market widely anticipates that the company will provide positive performance guidance, potentially driving stock price increases and bolstering investor confidence.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy ZS?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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: 130.040
Low
260.00
Averages
325.62
High
390.00
Current: 130.040
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 is a cloud-native platform that securely connects users, devices, applications and workloads, including artificial intelligence (AI) agents, without relying on hub-and-spoke network architecture and firewall-centric security. 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. Its services include Zscaler Internet Access (ZIA), Zscaler Private Access (ZPA), and Zscaler Digital Experience (ZDX). ZIA provides secure access to externally managed applications, including SaaS applications and internet destinations, regardless of device, location or network.
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.
Cybersecurity Company Disappoints Investors in Latest Update
- Performance Update Disappointment: The cybersecurity company failed to meet market expectations in its latest performance update, leading to a decline in investor confidence and a significant drop in stock prices during afternoon trading on May 26, 2026.
- Stock Price Volatility: Following the earnings release, the stock experienced extreme volatility, reflecting market concerns about the company's future growth potential, which could impact its financing capabilities and competitive position in the industry.
- Investor Reaction: The disappointment among investors regarding the company's future outlook may lead to increased selling pressure, further depressing stock prices and affecting the company's market capitalization.
- Need for Strategic Adjustment: In light of the poor performance, the company may need to reassess its strategic direction and market positioning to restore investor confidence and improve future performance outcomes.
See More
US Stock Indices Reach All-Time Highs Amid Positive Economic Signals
- Strong Market Performance: The S&P 500 rose by 0.22%, the Dow Jones Industrial Average increased by 0.72%, and the Nasdaq 100 climbed by 0.36%, with all three indices reaching new all-time highs, reflecting market confidence in economic recovery.
- Tech Stocks Lead Gains: Dell Technologies surged 32% after reporting Q1 total revenue of $43.84 billion, significantly exceeding the consensus estimate of $35.52 billion, and raised its 2027 revenue forecast to between $165 billion and $169 billion, indicating strong market demand and growth potential.
- Positive Economic Data: The May Chicago PMI rose by 13.5 to 62.7, far surpassing expectations of 50.3, marking the fastest expansion pace in 4.25 years, which further bolstered market confidence in stocks.
- Oil Price Decline Benefits Stocks: Crude oil prices fell over 1% to a five-week low due to a preliminary agreement between the US and Iran, easing inflation concerns and supporting the upward trend in the stock market.
See More
Nasdaq Index Rises on Friday, Dell Technologies Shares Surge
- Dell Technologies Surge: Following its blockbuster first-quarter results, Dell Technologies saw its shares skyrocket over 33%, marking its largest single-day gain since 2024, indicating strong market confidence in its growth potential and attracting investor interest.
- Tech Sector Boosts Nasdaq: The Nasdaq Composite Index closed up 0.28% on Friday, driven by robust performance in the tech sector, suggesting increased investor confidence in technology stocks, which may lead to further price appreciation for related companies.
- Weekly Performance Highlights: Micron and AppLovin led the weekly gains with increases of 26% and 26.36%, respectively, reflecting a positive market outlook for these companies and potentially drawing more capital into the tech sector.
- Weekly Losers: Despite the strong performance of tech stocks, Zscaler and PDD Holdings experienced declines of 18.43% and 13.70% following their quarterly results, indicating market concerns regarding their profitability and future outlook.
See More
US Stock Indices Reach All-Time Highs Amid Positive Economic Signals
- Market Surge: The S&P 500 rose by 0.21%, the Dow Jones Industrial Average increased by 0.65%, and the Nasdaq 100 climbed by 0.25%, with all three indices reaching new all-time highs, reflecting strong market confidence in economic recovery.
- Tech Stocks Rally: Dell Technologies surged over 31% after reporting Q1 total revenue of $43.84 billion, significantly exceeding the consensus estimate of $35.52 billion, and raised its 2027 revenue forecast to $165 billion to $169 billion, indicating robust demand for AI infrastructure.
- Positive Economic Indicators: The May MNI Chicago PMI jumped 13.5 to 62.7, well above the expected 50.3, marking the strongest expansion pace in 4.25 years, which supports the bullish sentiment in the stock market.
- Oil Price Decline: Crude oil prices fell more than 1% to a five-week low as the US and Iran tentatively agreed to extend a ceasefire, easing inflation concerns and fostering optimism about the economic outlook.
See More
U.S. Stock Indices Reach All-Time Highs Amid Positive Market Sentiment
- Market Optimism: The U.S. stock indices reached all-time highs today, with the S&P 500 up 0.41%, the Dow Jones up 0.43%, and the Nasdaq 100 up 0.66%, driven by improved prospects for a peace deal in the Middle East, reflecting investor confidence in economic recovery.
- Tech Stock Surge: Dell Technologies surged over 30% after providing a sales outlook that exceeded analyst expectations, highlighting relentless demand for AI infrastructure upgrades, which further boosted the entire tech sector's attractiveness to investors.
- Crude Oil Price Decline: Crude oil prices fell more than 1% to a five-week low due to a preliminary agreement between the U.S. and Iran, easing inflation concerns and fostering optimism about a potential recovery in oil supply, which could benefit related industries.
- Strong Corporate Earnings: As of now, 84% of S&P 500 companies have beaten Q1 earnings estimates, with overall earnings projected to rise 12% year-over-year, although excluding the tech sector, growth is only expected at 3%, indicating market reliance on tech for future growth amidst uncertainty.
See More
Market Dynamics and Corporate Performance Analysis
- Dell's Quarter Performance: Dell reported a quarter that exceeded expectations, with shares rising over 30%, indicating strong performance across all business levels, particularly in data center servers, which is expected to boost overall market confidence.
- Costco Membership Renewal Rates Up: Costco's latest earnings report showed improved membership renewal rates in the U.S. and Canada; although market reaction was muted, record performance in its gas business is likely to enhance membership loyalty and solidify its market position.
- Anthropic Surpasses OpenAI: Anthropic raised $65 billion at a $965 billion valuation, becoming the most valuable AI startup, a significant increase from $380 billion in February, showcasing explosive revenue growth and wealth creation potential in the AI sector.
- Cybersecurity Market Volatility: Okta beat expectations in its earnings report, with shares rising over 8%, while Zscaler's stock fell due to disappointing guidance, highlighting a divergence in the cybersecurity industry that affected the performance of other companies, including CrowdStrike.
See More
Cybersecurity Company Disappoints Investors in Latest Update
- Performance Update Disappointment: The cybersecurity company failed to meet market expectations in its latest performance update, leading to a decline in investor confidence and a significant drop in stock prices during afternoon trading on May 26, 2026.
- Stock Price Volatility: Following the earnings release, the stock experienced extreme volatility, reflecting market concerns about the company's future growth potential, which could impact its financing capabilities and competitive position in the industry.
- Investor Reaction: The disappointment among investors regarding the company's future outlook may lead to increased selling pressure, further depressing stock prices and affecting the company's market capitalization.
- Need for Strategic Adjustment: In light of the poor performance, the company may need to reassess its strategic direction and market positioning to restore investor confidence and improve future performance outcomes.
See More
US Stock Indices Reach All-Time Highs Amid Positive Economic Signals
- Strong Market Performance: The S&P 500 rose by 0.22%, the Dow Jones Industrial Average increased by 0.72%, and the Nasdaq 100 climbed by 0.36%, with all three indices reaching new all-time highs, reflecting market confidence in economic recovery.
- Tech Stocks Lead Gains: Dell Technologies surged 32% after reporting Q1 total revenue of $43.84 billion, significantly exceeding the consensus estimate of $35.52 billion, and raised its 2027 revenue forecast to between $165 billion and $169 billion, indicating strong market demand and growth potential.
- Positive Economic Data: The May Chicago PMI rose by 13.5 to 62.7, far surpassing expectations of 50.3, marking the fastest expansion pace in 4.25 years, which further bolstered market confidence in stocks.
- Oil Price Decline Benefits Stocks: Crude oil prices fell over 1% to a five-week low due to a preliminary agreement between the US and Iran, easing inflation concerns and supporting the upward trend in the stock market.
See More
Nasdaq Index Rises on Friday, Dell Technologies Shares Surge
- Dell Technologies Surge: Following its blockbuster first-quarter results, Dell Technologies saw its shares skyrocket over 33%, marking its largest single-day gain since 2024, indicating strong market confidence in its growth potential and attracting investor interest.
- Tech Sector Boosts Nasdaq: The Nasdaq Composite Index closed up 0.28% on Friday, driven by robust performance in the tech sector, suggesting increased investor confidence in technology stocks, which may lead to further price appreciation for related companies.
- Weekly Performance Highlights: Micron and AppLovin led the weekly gains with increases of 26% and 26.36%, respectively, reflecting a positive market outlook for these companies and potentially drawing more capital into the tech sector.
- Weekly Losers: Despite the strong performance of tech stocks, Zscaler and PDD Holdings experienced declines of 18.43% and 13.70% following their quarterly results, indicating market concerns regarding their profitability and future outlook.
See More
US Stock Indices Reach All-Time Highs Amid Positive Economic Signals
- Market Surge: The S&P 500 rose by 0.21%, the Dow Jones Industrial Average increased by 0.65%, and the Nasdaq 100 climbed by 0.25%, with all three indices reaching new all-time highs, reflecting strong market confidence in economic recovery.
- Tech Stocks Rally: Dell Technologies surged over 31% after reporting Q1 total revenue of $43.84 billion, significantly exceeding the consensus estimate of $35.52 billion, and raised its 2027 revenue forecast to $165 billion to $169 billion, indicating robust demand for AI infrastructure.
- Positive Economic Indicators: The May MNI Chicago PMI jumped 13.5 to 62.7, well above the expected 50.3, marking the strongest expansion pace in 4.25 years, which supports the bullish sentiment in the stock market.
- Oil Price Decline: Crude oil prices fell more than 1% to a five-week low as the US and Iran tentatively agreed to extend a ceasefire, easing inflation concerns and fostering optimism about the economic outlook.
See More
U.S. Stock Indices Reach All-Time Highs Amid Positive Market Sentiment
- Market Optimism: The U.S. stock indices reached all-time highs today, with the S&P 500 up 0.41%, the Dow Jones up 0.43%, and the Nasdaq 100 up 0.66%, driven by improved prospects for a peace deal in the Middle East, reflecting investor confidence in economic recovery.
- Tech Stock Surge: Dell Technologies surged over 30% after providing a sales outlook that exceeded analyst expectations, highlighting relentless demand for AI infrastructure upgrades, which further boosted the entire tech sector's attractiveness to investors.
- Crude Oil Price Decline: Crude oil prices fell more than 1% to a five-week low due to a preliminary agreement between the U.S. and Iran, easing inflation concerns and fostering optimism about a potential recovery in oil supply, which could benefit related industries.
- Strong Corporate Earnings: As of now, 84% of S&P 500 companies have beaten Q1 earnings estimates, with overall earnings projected to rise 12% year-over-year, although excluding the tech sector, growth is only expected at 3%, indicating market reliance on tech for future growth amidst uncertainty.
See More
Market Dynamics and Corporate Performance Analysis
- Dell's Quarter Performance: Dell reported a quarter that exceeded expectations, with shares rising over 30%, indicating strong performance across all business levels, particularly in data center servers, which is expected to boost overall market confidence.
- Costco Membership Renewal Rates Up: Costco's latest earnings report showed improved membership renewal rates in the U.S. and Canada; although market reaction was muted, record performance in its gas business is likely to enhance membership loyalty and solidify its market position.
- Anthropic Surpasses OpenAI: Anthropic raised $65 billion at a $965 billion valuation, becoming the most valuable AI startup, a significant increase from $380 billion in February, showcasing explosive revenue growth and wealth creation potential in the AI sector.
- Cybersecurity Market Volatility: Okta beat expectations in its earnings report, with shares rising over 8%, while Zscaler's stock fell due to disappointing guidance, highlighting a divergence in the cybersecurity industry that affected the performance of other companies, including CrowdStrike.
See More
