Yahoo Finance·2025-09-12 10:00Core Insights - Zscaler is experiencing significant growth in its agentic AI cybersecurity solutions, with annual recurring revenue (ARR) for agentic security operations increasing by 85% year over year and agentic AI operations growing by 58% last year [1] - The company's revenue for fiscal year 2025 rose by 23% to $2.7 billion, outpacing the growth of the zero-trust security market, which is projected to grow at an annual rate of nearly 17% through 2030 [2][3] - Zscaler's stock price has increased by 59% in 2025, indicating strong market performance compared to competitors like Nvidia, which has seen a 32% appreciation [3][4] Company Performance - Zscaler's remaining performance obligations (RPO) surged by 31% to $5.8 billion, more than double the revenue generated in the latest fiscal year, suggesting a robust long-term revenue pipeline [7][8] - Analysts expect Zscaler to deliver strong double-digit growth over the next three fiscal years, although at a slower pace compared to fiscal 2025 [9] - Recent upward revisions in consensus revenue estimates reflect the company's improving RPO and the growth potential in AI-focused cybersecurity niches [10] Market Position - The adoption of agentic AI in cybersecurity is expected to grow at a compound annual growth rate (CAGR) of 34% through 2033, potentially reaching $322 billion in annual revenue [6] - Zscaler's valuation at 16 times sales is considered attractive compared to Nvidia's price-to-sales ratio of 25, with expectations that Zscaler's growth will surpass Nvidia's in the coming years [11][12]