Zscaler's profitability expected by 2027 amid high debt risks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 29 Jan 26
Source: NASDAQ.COM
Zscaler Inc. shares fell 5.91% as the stock hit a 20-day low, reflecting investor concerns about its financial health.
Analysts predict that Zscaler will achieve profitability by 2027, with a required annual growth rate of 46%. However, the company reported a loss of $41 million last year and has a high debt level at 86% of equity, which could hinder its growth potential and investor confidence. The need for stricter capital management is crucial as the company navigates its investment phase.
The implications of Zscaler's financial outlook suggest that while there is potential for future profitability, the current high debt and recent losses may lead to cautious investor sentiment, necessitating close monitoring of its financial performance.
Analyst Views on ZS
Wall Street analysts forecast ZS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ZS is 325.62 USD with a low forecast of 260.00 USD and a high forecast of 390.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
30 Analyst Rating
24 Buy
6 Hold
0 Sell
Strong Buy
Current: 200.630
Low
260.00
Averages
325.62
High
390.00
Current: 200.630
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.
