Core Viewpoint - The performance of Zscaler's international operations is crucial for assessing its financial resilience and growth prospects in the interconnected global economy [1][2][10]. Revenue Performance - Zscaler's total revenue for the quarter reached $719.23 million, reflecting a 21.3% increase year-over-year [4]. - The revenue contributions from international markets are significant for understanding the company's overall performance [3]. International Revenue Breakdown - Other International contributed $25.52 million, accounting for 3.6% of total revenue, with a slight decrease of -0.25% compared to expectations [5]. - Asia Pacific generated $114.26 million, representing 15.9% of total revenue, exceeding projections by +3.38% [6]. - Europe, Middle East, and Africa contributed $210.82 million, making up 29.3% of total revenue, slightly below the consensus estimate by -0.17% [7]. Future Projections - Analysts project Zscaler's total revenue for the current fiscal quarter to be $773.36 million, a 23.2% increase year-over-year, with expected contributions from Other International (3.5%), Asia Pacific (15.2%), and Europe, Middle East, and Africa (28.6%) [8]. - For the entire year, total revenue is forecasted at $3.27 billion, a 22.3% improvement from the previous year, with regional contributions expected to be similar to quarterly projections [9]. Conclusion - The reliance on global markets presents both opportunities and challenges for Zscaler, making the analysis of international revenue trends essential for forecasting future performance [10].

Additionally, Zscaler is also offering agentic AI cybersecurity solutions to speed up the process of identifying the reasons behind IT outages, undertake corrective measures, and improve troubleshooting. The important thing to note here is that Zscaler's agentic AI security offerings are growing at a nice pace. The annual recurring revenue (ARR) of its agentic security operations increased by an impressive 85% year over year, while its agentic AI operations grew by 58% last year.The good part is that Zscale ...

Key Points Investors were sure placing a lot of trust in the zero-trust cybersecurity solutions provider. This was helped by an analyst's price target raise the day before. 10 stocks we like better than Zscaler › Cybersecurity specialist Zscaler (NASDAQ: ZS) was a winner of a stock on Thursday, rising by nearly 3% in price. Investors were juiced by an analyst's recommendation upgrade, accompanied by a meaty price target raise. That sub-3% climb was more than sufficient to beat the S&P 500 (SNPINDEX: ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _____________________________________ FORM 10-K _____________________________________ (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended July 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _ to _ Commission File Number: 001-38413 ZSCALER, INC. (Exact Name of Registrant as Specifi ...

Upgrades Summary - DA Davidson upgraded Nvidia (NVDA) to Buy from Neutral with a price target of $210, increased from $195, due to anticipated growth in AI compute demand sustaining growth into next year and beyond [2] - Deutsche Bank upgraded Chewy (CHWY) to Buy from Hold with a price target of $45, up from $38, following the fiscal Q2 report, indicating improved buy-side expectations despite potential earnings estimate cuts due to growth investments in the second half of 2025 [2] - Seaport Research also upgraded Chewy to Buy from Neutral with a price target of $47 [2] - Barclays upgraded Thermo Fisher (TMO) to Overweight from Equal Weight with a price target of $550, raised from $490, citing attractive valuation levels on both absolute and relative bases [2] - Wolfe Research upgraded Bill (BILL) to Outperform from Peer Perform with a price target of $70, noting a 37% decline in shares year-to-date but better prospects into fiscal 2026 [2] - Freedom Capital upgraded Zscaler (ZS) to Buy from Hold with a price target of $320, increased from $280, based on strong fiscal Q4 results, growth momentum from the Red Canary acquisition, and higher long-term assumptions [2]

Zscaler Inc. (NASDAQ:ZS) is one of the top cybersecurity stocks to consider for investment right now. On September 4, Canaccord Genuity reiterated a ‘Buy’ rating on the stock and lifted the price target to $340 from $320. The price target hike follows strong price action that has seen the stock rally by 72% year to date. Canaccord Genuity Lifts Zscaler (ZS) Price Target amid Looming $100B Market Opportunity According to Canaccord Genuity, Zscaler’s impressive market run stems from its robust technology m ...

Core Insights - The cybersecurity market is projected to grow at an annual rate of 12%, driven by increased spending on integrated security solutions as companies face more complex environments and tighter budgets [4][7]. Group 1: Market Trends - The cybersecurity market is expected to reach $270 billion, with firms planning to increase spending on cybersecurity products by 50% compared to general software products in the coming years [4]. - A trend towards "platformization" in cybersecurity products is emerging, as companies seek to integrate and simplify their cyber-defense structures [2][3]. Group 2: Company Performance - Palo Alto Networks is projected to have a revenue growth of 13.6% for the next year and a free cash flow margin of 38.3%, leading to an "Overweight" rating from Morgan Stanley [6][8]. - CrowdStrike is expected to achieve a revenue growth of 21.5% and a free cash flow margin of 31%, with an "Equal Weight" rating and a potential upside of 9% in the base case and 30% in the bull case [8]. Group 3: Investment Opportunities - Morgan Stanley identifies Palo Alto Networks, CrowdStrike, and Zscaler as key players poised for growth due to their comprehensive solutions across various security domains [1][2]. - The median projected revenue growth for the 15 software stocks to watch is 11.8%, with a median projected free cash flow margin of 26.6% [5].

Core Thesis - Zscaler's stock has rebounded significantly, currently priced at $270, reflecting a 50% year-to-date increase, driven by AI demand and improved margins [2] - The company reported $2.67 billion in revenue for fiscal 2025, a 23% year-over-year increase, with projections of $3.3 billion for fiscal 2026 [3] - Zscaler is trading at approximately 15–16x forward sales, which is lower than competitors like CrowdStrike and Cloudflare, suggesting potential for stock price to reach $550 [3][4] Key Growth Drivers - The transition to cloud and hybrid models is increasing demand for Zero Trust and secure access solutions, positioning Zscaler favorably in the market [5] - Adjusted EPS grew by 23% in fiscal 2025, with annual recurring revenue exceeding $3 billion, indicating improving profitability [5] - New AI-enhanced security capabilities and strategic acquisitions are broadening Zscaler's market reach and growth prospects [5] - Collaborations with hyperscalers and channel partners are enhancing customer retention and upsell opportunities [5] - Zscaler has a net retention rate of 115% and is winning larger deals, indicating strong customer momentum [5] Valuation and Market Position - At $275 per share, Zscaler is trading at premium valuations, but strong growth visibility supports a potential price of $550 if revenues and margins improve [6] - The company represents a high-risk, high-reward scenario, with its future closely tied to execution and competitive positioning in the cloud security space [6] Risks and Challenges - Despite improved non-GAAP profitability, GAAP losses may deter some institutional investors [8] - Operating expenses consume nearly 60% of revenue, necessitating efficient execution [8] - A forward sales multiple around 16x reflects growth expectations, and any slowdown in billings could negatively impact the stock [8] - Competition from firms like Palo Alto Networks, CrowdStrike, and Cloudflare is intensifying, putting pressure on pricing and innovation [8]

Core Insights - Zscaler's stock experienced a 4% decline after reporting strong fiscal Q4 results, but remains up approximately 50% year-to-date [1][2] - The company operates in the zero trust security niche, which is gaining importance in the cybersecurity sector [3] - Zscaler's revenue for the quarter increased by 21% year-over-year to $719.2 million, surpassing management's guidance [5] Financial Performance - Adjusted earnings per share (EPS) rose to $0.89 from $0.72 year-over-year, exceeding the forecast of $0.79 to $0.80 [5] - Operating cash flow was $250.6 million, and free cash flow was $171.9 million, with a cash and short-term investments balance of $3.6 billion [6] - Calculated billings surged by 32% year-over-year to $1.2 billion, while deferred revenue increased by 30% to $2.47 billion, indicating potential revenue growth acceleration [8] Future Guidance - Management forecasts fiscal 2026 revenue between $3.265 billion and $3.284 billion, representing growth of approximately 22% to 23% [9] - For Q1 of fiscal 2026, Zscaler anticipates revenue between $772 million and $774 million, with adjusted EPS between $0.85 and $0.86 [10][11] - The introduction of the Z-Flex payment program has led to a 50% increase in flex billings in fiscal Q4, which could drive further growth [14] Market Position and Strategy - Zscaler is focusing on new growth areas such as AI Security and Zero Trust Everywhere, which contributed to exceeding $1 billion in annual recurring revenue [4] - The company is adapting its strategy by implementing flexible payment options, similar to competitors, to enhance customer engagement [13] - Zscaler's forward price-to-sales multiple is approximately 13, reflecting a fair valuation given its expected revenue growth of around 25% [15]

Core Viewpoint - Zscaler is experiencing a strong recovery in its stock performance, with analysts showing a bullish consensus and the potential for reaching record highs for the first time since 2021 [1][2][12]. Company Performance - Zscaler reported $2.67 billion in revenue for fiscal 2025, marking a 23% increase from the previous year and exceeding management's forecast of $2.66 billion [9]. - The company managed to reduce its GAAP loss to $41.4 million, a 28% improvement from the prior year, while achieving a non-GAAP profit of $535.8 million, up 29% year-over-year [10][11]. Analyst Ratings - Among 49 analysts covering Zscaler, 30 have assigned a buy rating, with none recommending a sell, indicating strong market confidence [12]. - The average price target for Zscaler stock is $318.26, suggesting a potential upside of 13% over the next 12 to 18 months, with a Street-high target of $385 indicating a possible 37% upside [13]. Market Position and Strategy - Zscaler is a leader in zero-trust cybersecurity, addressing vulnerabilities created by the shift to online operations and remote work [4][5]. - The company aims to convince 390 organizations to adopt its Zero Trust Everywhere approach by the end of fiscal 2026, having already secured over 350 by the end of fiscal 2025 [8]. Valuation Metrics - Zscaler's price-to-sales (P/S) ratio has decreased to 16.5 from a peak of over 60 in 2021, positioning it competitively between rivals Palo Alto Networks and CrowdStrike [14]. - The company estimates its addressable market at $96 billion, indicating significant growth potential based on its fiscal 2025 revenue [16].