Zscaler (NASDAQ: ZS) Expected to Achieve Profitability by 2027 with 46% Annual Growth Rate
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Source: Yahoo Finance
- Approaching Breakeven: Zscaler reported a loss of $41 million in its most recent financial year, with analysts predicting a final loss in 2026 before turning a profit of $2.1 million in 2027, indicating a positive trend towards breakeven.
- Growth Rate Expectations: To achieve profitability by 2027, Zscaler must maintain an average annual growth rate of 46%, reflecting analysts' confidence in the company's future; however, slower growth could delay profitability.
- High Debt Risk: Zscaler's debt level is relatively high at 86% of equity, significantly exceeding the 40% threshold, necessitating stricter capital management and increasing investment risks.
- Market Focus: While Zscaler's growth potential is noteworthy, its current investment phase and high debt levels may affect investor confidence, necessitating close monitoring of future financial performance and market dynamics.
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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.
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