Core Thesis - Zscaler, Inc. is positioned as a foundational security infrastructure provider, similar to Salesforce's role in enterprise software during the 2008 financial crisis, with unique advantages that competitors cannot replicate [2][6] Financial Performance - As of October 10th, Zscaler's share price was $309.88, with a forward P/E of 84.03 [1] - In Q4 FY25, Zscaler reported a 21% year-over-year revenue growth to $719 million, with operating margins reaching a record 22.1% and free cash flow exceeding estimates by 29% [3] Growth Dynamics - The company’s Z-Flex pricing model allows for flexible, consumption-based adoption, which helps mitigate the threat from Microsoft bundling and accelerates platform expansion [3] - High single-digit net new ARR growth and 22-23% total ARR growth indicate that two-thirds of expansion is driven by existing customer adoption, showcasing effective cross-selling across its Zero Trust, Data Security, and Agentic Operations modules [4] Future Outlook - Enterprise AI adoption is a significant catalyst, leading to a 3,500% increase in AI/ML transactions, positioning Zscaler as a control plane for agent-to-agent and agent-to-application communication [5] - Over the next three years, Zscaler could see ARR growth of 20-25%, with potential margin expansion depending on Z-Flex adoption, AI Security momentum, and cross-sell execution [5] Competitive Position - Zscaler is viewed as a rare investment opportunity in transformative infrastructure, with durable competitive advantages and accelerating platform adoption, which could lead to substantial long-term upside as the market recognizes its security infrastructure model [6]