Update shared on04 Sep 2025
Analysts maintained Zscaler’s price target at $324.66, as robust Q4 results, platform leadership, and ongoing ARR growth balanced heightened concerns over valuation and FY26 growth visibility.
Analyst Commentary
- Bullish analysts highlighted Zscaler’s strong fiscal Q4 results, consistent beats across key metrics, and positive initial FY26 guidance as validation of robust growth momentum and a solid go-to-market strategy.
- Continued leadership in Secure Access Service Edge (SASE) and Zero Trust architecture, combined with a maturing sales force and platform expansion, underpin the company’s favorable risk/reward profile and long-term growth outlook.
- Expansion in annual recurring revenue (ARR) and billings consistently exceeded expectations, while operational margins achieved record levels, reinforcing confidence in ongoing fundamental strength.
- Bearish analysts and those maintaining neutral stances cited valuations that already reflect strong growth expectations, potential for only moderate ARR growth in FY26 guidance, and called for greater visibility into the competitive landscape before becoming more constructive.
- Broad adoption of Zscaler’s platform solutions, persistent tailwinds from digital transformation, and customer demand for vendor consolidation were repeatedly cited as supportive of higher price targets, with some analysts applying higher valuation multiples due to increased demand for Zero Trust technologies.
What's in the News
- Zscaler provided fiscal Q1 and full-year 2026 revenue guidance, projecting $772–$774 million for the quarter and $3.265–$3.284 billion for the year.
- Launched Zscaler Cellular, an AI-powered Zero Trust solution for IoT and OT device security over global cellular networks, partnering with leading telecom providers to deliver scalable managed security services; solution is already deployed at organizations like Sandvik and Maverick Transportation.
- Barclays Capital, Goldman Sachs, Citigroup, and Deutsche Bank were added as co-lead underwriters for Zscaler's $1.5 billion fixed-income offering.
Valuation Changes
Summary of Valuation Changes for Zscaler
- The Consensus Analyst Price Target remained effectively unchanged, at $324.66.
- The Future P/E for Zscaler remained effectively unchanged, moving only marginally from 418.75x to 421.24x.
- The Discount Rate for Zscaler remained effectively unchanged, at 8.52%.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.