Core Insights - Zscaler's 2025 Phishing Report reveals a significant shift in phishing tactics, with cybercriminals leveraging Generative AI for targeted attacks against critical business functions, emphasizing the need for a Zero Trust + AI defense strategy [2][3] Phishing Trends - Global phishing attempts decreased by 20%, with a nearly 32% drop in the U.S., attributed to improved email authentication standards, yet emerging markets like Brazil, Hong Kong, and the Netherlands are experiencing increased phishing activity [4] - Established markets such as India, Germany, and the UK continue to face persistent phishing threats as attackers adapt to local patterns [4] Attack Methods - Phishing campaigns are increasingly exploiting community platforms like Facebook, Telegram, Steam, and Instagram for brand spoofing, malware distribution, and social engineering attacks, with tech support scams reaching over 159 million hits in 2024 [5][8] - Cybercriminals are utilizing Generative AI to enhance their attacks, creating fake websites and deepfake content to deceive users, particularly targeting sensitive departments like payroll, finance, and HR [6][7] Defensive Strategies - Zscaler's Zero Trust Exchange provides comprehensive protection against evolving phishing threats by securing users, applications, and data throughout the attack chain, highlighting the importance of a proactive, multi-layered defense approach [8][10] - The company emphasizes the necessity of AI-powered defenses to counteract the sophisticated tactics employed by cybercriminals [3][10]

Zscaler (ZS) and Check Point Software (CHKP) are two cybersecurity giants playing critical roles in securing enterprise environments, but in very different ways. While Zscaler was built from scratch as a cloud platform, Check Point started as an on-prem security provider and is now adding cloud options. Both Zscaler and Check Point are capitalizing on the rapid expansion of the cybersecurity space, driven by the increasing frequency of attacks, such as credential theft and abuse, remote desktop protocol att ...

Core Insights - The Zscaler ThreatLabz 2025 VPN Risk Report highlights the urgent need for organizations to transition from traditional VPNs to a Zero Trust security model due to the increasing vulnerabilities and risks associated with VPN usage [1][4][5] VPN Security Challenges - 56% of enterprises using VPNs cite maintaining security and compliance as their largest challenge [1] - 92% of IT professionals are concerned that unpatched VPN vulnerabilities will lead to ransomware attacks [1][4] - 54% of respondents identify security and compliance risks as the top challenges associated with VPNs [3] Shift to Zero Trust - 81% of organizations plan to implement a Zero Trust strategy within the next year, indicating a significant shift in security architecture [1][5][13] - The report emphasizes that traditional VPNs are inadequate for modern cyber threats, as they expose networks to potential attacks [2][12] Vulnerability Trends - VPN Common Vulnerabilities and Exposures (CVEs) increased by 82.5% from 2020 to 2024, with 60% of these vulnerabilities rated as high or critical [10] - Remote code execution (RCE) vulnerabilities are the most prevalent, posing serious risks to organizations [10] Concerns Over Third-Party Access - 93% of organizations express concerns about backdoor vulnerabilities from third-party VPN connections [7][11] - A notable incident involved a financial services company suffering a data breach due to VPN vulnerabilities, affecting nearly 20,000 clients [11] Recommendations for Organizations - Organizations are encouraged to adopt a Zero Trust framework to minimize attack surfaces, block threats, and enhance data security [13][14] - The report provides best practices for replacing VPN security risks with a robust Zero Trust architecture [14]

Zscaler (ZS) shares soared 3.1% in the last trading session to close at $180.06. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 16.3% loss over the past four weeks.The upswing was likely due to a recovery in the broader stock market after a massive sell-off last week following the announcement of a “reciprocal tariff” by President Donald Trump.This cloud-based information security provider is expected to post quarterly earnings ...

Core Insights - Zscaler, Inc. (ZS) stock has shown significant volatility over the past three months but delivered a 9.2% return, outperforming the broader technology sector and the S&P 500, which declined by 11.9% and 5.4%, respectively [1][4] - The company is experiencing strong demand for its cybersecurity solutions, driven by increasing threats and a shift from legacy network security to cloud-based solutions [5][6] Financial Performance - In Q2 of fiscal 2025, Zscaler achieved a 12-month trailing dollar-based retention rate of 115%, with Remaining Performance Obligations growing 28% year over year [6] - Zscaler had 620 customers with annualized recurring revenues (ARR) exceeding $1 million and 3,291 customers with ARR above $100,000 [6][8] - The Zacks Consensus Estimate for fiscal 2025 revenues suggests a 22.2% year-over-year increase, with EPS revised upward to $3.07 [9][10] Government Sector Expansion - Zscaler is enhancing its GovCloud offerings to comply with government security standards, which will help expand its presence among government agencies [7][8] - The company added one cabinet-level agency client in Q4, bringing its total to 13 out of 15 U.S. cabinet-level agencies [8] AI and Cybersecurity Innovations - Zscaler is leveraging generative AI to enhance its security solutions, partnering with NVIDIA and CrowdStrike to integrate AI technologies [13][14] - The company has deepened its AI capabilities through acquisitions and collaborations, which have driven financial performance in its AI-driven analytics products [15] Valuation Concerns - Zscaler holds a premium valuation, indicated by a Zacks Value Score of F and a Forward 12-month P/S ratio of 10.25X, significantly higher than the sector average of 5.49X [16][19] Investment Recommendation - Despite the premium valuation, Zscaler's strong position in Zero Trust security and AI innovations suggest that holding the stock remains a viable strategy [4][19]

Core Viewpoint - Zscaler's stock price has been on an upward trend over the past six months, driven by market sentiment and other factors, despite a deteriorating short-term outlook and weak leading indicators [1][2][16] Financial Performance - In Q2, Zscaler generated $648 million in revenue, a 23% year-over-year increase, although below the expected 25% growth [12] - The annual recurring revenue (ARR) at the end of the quarter was $2.7 billion, also reflecting a 23% year-over-year growth [12] - The remaining performance obligation (RPO) grew 28% year-over-year to $4.615 billion, while total calculated billings increased 18% to $743 million [12] - The company expects Q3 revenue to be between $665 million and $667 million, representing a year-over-year growth of 20-21% [12] Customer Growth and Retention - Zscaler saw a strong net customer increase in Q2, with the number of customers generating $100,000 in annual revenue growing by 19% and those generating $1 million growing by 28% [14] - The net retention rate improved to 115% in Q2, indicating a recovery in customer retention [14] Market Position and Strategy - Zscaler continues to promote its zero-trust model, questioning the advantages of SD-WAN and most SASE architectures, focusing on reducing attack surfaces and eliminating lateral threat propagation [4] - The upcoming device refresh cycle presents an opportunity for Zscaler to convert customers from traditional architectures [4] - The company is expanding its offerings from user protection to workloads, OT devices, and B2B users [6] Product Development and AI Integration - Zscaler views artificial intelligence as a tailwind for demand and product development, particularly in data security [10] - The company has launched AI analytics solutions, with the ACV of its AI analytics product line nearly doubling year-over-year in Q2 [10] Sales and Operational Efficiency - Zscaler has shifted to a customer-centric sales model, which initially led to sales personnel turnover but is now stabilizing with improved productivity [11] - The company is expected to continue increasing the number of sales representatives, which should support growth in the near term [11] Competitive Landscape - Zscaler faces significant competition in the SASE market, and its ability to leverage the device refresh cycle will be crucial for its architecture and customer perception [1][4] - The company is actively promoting the benefits of its zero-trust approach to attract new customers [4] Challenges and Outlook - Despite the overall improvement in investor confidence towards SaaS companies, Zscaler acknowledges that the environment remains challenging [1] - The demand environment for 2025 appears to be deteriorating, contrasting with expectations for stability or improvement in 2024 [2] - Zscaler's growth rate is slowing, but the company still has substantial long-term growth opportunities [6][19]

Core Insights - Zscaler collaborated with T-Mobile to implement the Zscaler Zero Trust Exchange™ AI-powered cloud security platform, enhancing T-Mobile's cybersecurity infrastructure and reducing reliance on traditional VPNs [1][2][3] Company Overview - Zscaler is a leader in cloud security, providing a platform that protects thousands of customers from cyberattacks and data loss by securely connecting users, devices, and applications globally [4] Deployment Details - T-Mobile's deployment of the Zscaler Zero Trust Exchange took three months and has since improved secure access to applications and the internet, regardless of user location or device [1][3] - The platform operates on the principle of least-privileged access, establishing trust based on user identity and context, which includes location, device, application, and content [3] Security Enhancements - The collaboration aims to enhance T-Mobile's cybersecurity approach, ensuring that only verified and authorized users can access necessary systems, thereby significantly reducing cyber threat risks [2][3] - Zscaler's tools have allowed T-Mobile to retire legacy firewalls and VPNs, promoting more efficient access to applications and information [3] Additional Features - Zscaler offers various services, including Zscaler Internet Access™ (ZIA™) for secure internet access, Zscaler Private Access™ (ZPA™) to replace traditional VPNs, and advanced threat detection technologies [5]

Core Viewpoint - The article discusses the author's previous bullish stance on Zscaler (NASDAQ: ZS) due to its growth potential driven by factors such as Federal spending and a shift in the go-to-market model [1] Group 1: Company Analysis - Zscaler was previously rated as a buy, indicating strong confidence in its growth trajectory [1] - The growth strength of Zscaler is supported by external factors like government spending and changes in its market approach [1] Group 2: Investment Approach - The author emphasizes a diverse investment strategy that includes fundamental, technical, and momentum investing, suggesting a holistic approach to capital management [1] - The intention behind writing on Seeking Alpha is to track investment ideas and connect with other investors sharing similar interests [1]

Group 1 - The article discusses the investment strategy of Zscaler, Inc. (NASDAQ: ZS), with a reiterated "buy" rating and a price target of $221, indicating a bullish outlook on the company's growth potential [1] - The investment strategy focuses on sustainable, growth-driven companies that aim to maximize shareholder equity, reflecting a broader trend in the investment community towards responsible investing [1] - The author highlights the importance of financial literacy and aims to make complex macroeconomic concepts more accessible to a wider audience, which aligns with current trends in democratizing investment knowledge [1]

Group 1 - The article highlights that tariffs and recession fears have negatively impacted most growth stocks this year, with Zscaler being a notable exception in the cybersecurity sector [1] - Zscaler focuses on protecting customer data, positioning itself as a resilient player amidst challenging market conditions [1] Group 2 - The author, Gary Alexander, has extensive experience in technology companies and has been a contributor to Seeking Alpha since 2017, indicating a strong background in industry analysis [1] - Alexander's insights are informed by his experience in both Wall Street and Silicon Valley, as well as his advisory role to seed-round startups [1]