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Upturn AI Summary - About
Zscaler Inc(ZS)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for ZS
10/23/2026: ZS (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Zscaler is a cloud-native cybersecurity company that has established a leading position in the Security Service Edge market. By replacing traditional hardware with a software-based, Zero Trust architecture, it provides a compelling solution for organizations adapting to hybrid work. Its primary growth story revolves around the continued adoption of cloud security and the cross-selling of its expanding product suite. However, the company faces significant competition from established security incumbents and carries high valuation risk typical of growth stocks. It is best suited for long-term growth investors who can tolerate volatility, and market participants should monitor its ability to maintain high growth rates amidst evolving competition.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Strong fit | Zscaler's consistent revenue growth in the expanding cybersecurity market aligns well with growth-focused strategies. |
| Momentum investor | Strong fit while signal remains positive | The stock often exhibits strong price trends tied to sector-wide shifts in cybersecurity spending. |
| Value investor | Weak fit | The company trades at a premium valuation typical of high-growth software, often excluding it from traditional value screens. |
| Dividend investor | Weak fit | Zscaler does not provide dividend income, as it reinvests all earnings into business expansion. |
| Low-risk investor | Weak fit | High volatility and sensitivity to growth-stock sentiment make this unsuitable for risk-averse portfolios. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | High | The stock is susceptible to significant price swings based on quarterly growth reports and broader market sentiment. |
| Valuation risk | High | High price-to-sales ratios mean the stock can experience sharp corrections if growth expectations are not met. |
| Competition risk (Cloud infrastructure) | Medium / high | Established network security players are aggressively bundling security features that compete directly with Zscaler. |
| Business quality | Strong | Zscaler maintains a high-quality subscription-based business model with high switching costs once implemented. |
| Dividend income | Low / none | Investors seeking immediate cash flow from dividends will not find this an appropriate investment. |
| Execution risk | Medium | Sustaining high growth rates as the company scales requires flawless execution in sales and R&D. |
Price Behavior
Strong Uptrend
The stock has maintained a strong upward price trend across the last three quarters.
Extreme Price Shocks
The stock has experienced exceptionally large and disruptive price movements during the period.
Analysis of Past Performance
Type Stock | Historic Profit -14.03% | Avg. Invested days 27 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Advisory Rating  | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 10/23/2026 |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals
Financial Health Rating
Growth Momentum Score
Ownership
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue)
Economic Dimensions
Quantitative Style Profile
Style Classification
Quality Focused
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 41.60B USD | Price to earnings Ratio - | 1Y Target Price 234.19 |
Price to earnings Ratio - | 1Y Target Price 234.19 | ||
Volume (30-day avg) 3.2M shares | Beta 0.94 | 52 Weeks Range 114.62 - 336.99 | Updated Date 10/23/2026 |
52 Weeks Range 114.62 - 336.99 | Updated Date 10/23/2026 | ||
Dividends yield (FY) - | Basic EPS (TTM) -0.39 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Subscription Services | Recurring fees for ZIA, ZPA, and ZDX platform access. | The company earns money primarily through recurring subscription contracts, providing predictable revenue streams. |
| Geographic Presence | Operations in North America, EMEA, APAC, and Latin America. | Zscaler operates globally, meaning it is exposed to international economic conditions and currency fluctuations. |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Valuation
Trailing PE - | Forward PE 39.22 | Enterprise Value 29.62B | Price to Sales(TTM) 12.41 |
Enterprise Value 29.62B | Price to Sales(TTM) 12.41 | ||
Enterprise Value to Revenue 8.84 | Enterprise Value to EBITDA 165.94 | Shares Outstanding 163.05M | Shares Floating 106.46M |
Shares Outstanding 163.05M | Shares Floating 106.46M | ||
Percent Insiders 34.67 | Percent Institutions 53.39 |
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
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