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ZscalerZS

Systems Software
Solid businessPricier than peers
$237.83−4.03%After hours: $237.94 (+0.05%)At the close, 30 Oct · Prices from CNBC, may be delayed
▼ 25.9% over 1 year
Zscaler over 1 yearDaily close, $, to 30 Oct 2026
$200$300Nov2026MarMayJulSep$237.83$200$300NovMarJul$237.83
Source: Nasdaq daily closes
Market value$38.78B
Price to earnings–
Forward P/E48.7x
Dividend yield–
Year to date+5.7%
One year−25.9%
Next earningsNot scheduled
SectorInformation Technology
52-week range (closes)
$118.05$336.27

Quality and valuation

How Zscaler compares with other information technology stocks. A description, not a recommendation.

Zscaler and 7 systems software peers. Across: valuation (P/E) against the sector. Up: business quality against the sector. Hover or tap a logo for its numbers.

Business quality: about averageValuation: pricier than most

An average business among information technology companies, priced above most of them.

Zscaler trades at 48.7 times the next 12 months of expected earnings, against a median of 22.2x for the 99 information technology stocks we cover. The quality score blends where it ranks on revenue growth, gross margin, operating margin and free-cash-flow margin (net margin for banks and insurers) over the last 12 months, from SEC filings.

  • Revenue grew faster than the sector median: +25.4% vs +20.6%
  • Keeps more of each sale (gross margin): 76.8% vs 61.5%
  • Less profitable (operating margin): −4.0% vs 17.0%
  • Turns more of its sales into cash: 25.4% vs 21.7%
ZS trades at 48.7x forward earnings, above the sector medianForward p/e, Systems Software peers
NOW23.9xMSFT26.5xTWLO33.2xFTNT38.0xZS48.7xPANW87.5xCRWD177.1xRBRK253.4xSector median 22.2xNOW23.9xMSFT26.5xTWLO33.2xFTNT38.0xZS48.7xPANW87.5xCRWD177.1xRBRK253.4xSector median 22.2x
Source: CNBC quotes; Mostly Markets

Financials

From Zscaler's SEC filings, through the quarter ending 31 Jul 2026. Hover or tap a bar for its value.

Revenue grew 24.9% from a year earlierQuarterly revenue, $m, latest Q4 ’26
$0m$250m$500m$750mQ1 ’25Q3 ’25Q1 ’26$898mQ4 ’26$0m$500mQ1 ’25Q3 ’25Q1 ’26$898mQ4 ’26
Source: SEC filings
Growth slowed to +24.9% last quarterRevenue growth, year on year, %
0%10%20%Q1 ’25Q3 ’25Q1 ’2624.9%Q4 ’260%10%20%Q1 ’25Q3 ’25Q1 ’2624.9%Q4 ’26
Source: SEC filings
Operating margin was -1.7% last quarterOperating income as a share of revenue, %
−6%−4%−2%0%Q1 ’25Q3 ’25Q1 ’26−1.7%Q4 ’26−5%−2%0%Q1 ’25Q3 ’25Q1 ’26−1.7%Q4 ’26
Source: SEC filings
Free cash flow was $852 million over 12 monthsQuarterly free cash flow (operating cash flow minus capex), $m
$0m$200m$400mQ1 ’25Q3 ’25Q1 ’26$79mQ4 ’26$0m$200m$400mQ1 ’25Q3 ’25Q1 ’26$79mQ4 ’26
Source: SEC filings
Last 12 monthsZSSector median
Revenue growth+25.4%+20.6%
Gross margin76.8%61.5%
Operating margin−4.0%17.0%
Free cash flow margin25.4%21.7%

Stories on Zscaler

Friday, 23 October
Big movers

Five Stocks That Made News This Week: Zscaler, Hasbro, Lam Research, Meta and Moderna

Zscaler soared 23.0% this week as security stocks rallied and Hasbro 18.9% after raising its outlook, while Lam Research plunged 12.8% on a supply warning and Meta 9.4% on its AI spending.

ZS▲ 7.3%
Screens of market charts
Why it moved

Why CrowdStrike (CRWD) Stock Is Soaring Today

CrowdStrike soared 8.3% on Friday after an Evercore ISI survey found security budgets firming into year-end, two days after critical PHP flaws put web servers at risk.

CRWD▲ 8.2%
A software office at night

Similar companies

Systems Software, by market value.

CompanyPriceTodayYTDValue
MSFTMicrosoft$521.91−1.55%+7.9%$3.88T
PANWPalo Alto Networks$365.87−3.86%+98.6%$299B
CRWDCrowdStrike$250.43−4.10%+113.7%$256B
NOWServiceNow$105.12−4.15%−31.4%$109B
FTNTFortinet$136.08−2.17%+71.4%$99.84B
TWLOTwilio$205.03−15.24%+44.1%$31.49B
RBRKRubrik$124.15−7.09%+62.3%$25.74B
GENGen Digital$29.13+3.30%+7.1%$17.44B