Zscaler Future Growth

Future criteria checks 5/6

Zscaler is forecast to grow earnings and revenue by 39.3% and 16.2% per annum respectively. EPS is expected to grow by 30.4% per annum. Return on equity is forecast to be 26.1% in 3 years.

Key information

39.3%

Earnings growth rate

30.4%

EPS growth rate

Software earnings growth	17.2%
Revenue growth rate	16.2%
Future return on equity	26.1%
Analyst coverage	Good
Last updated	22 Nov 2024

Recent future growth updates

Recent updates

Earnings and Revenue Growth Forecasts

NasdaqGS:ZS - Analysts future estimates and past financials data (USD Millions)
Date	Revenue	Earnings	Free Cash Flow	Cash from Op	Avg. No. Analysts
7/31/2027	3,837	45	1,067	1,400	18
7/31/2026	3,152	-46	813	1,122	40
7/31/2025	2,613	-105	635	923	42
7/31/2024	2,168	-58	585	780	N/A
4/30/2024	2,030	-74	550	712	N/A
1/31/2024	1,896	-139	501	647	N/A
10/31/2023	1,758	-168	463	595	N/A
7/31/2023	1,617	-202	334	462	N/A
4/30/2023	1,480	-269	307	430	N/A
1/31/2023	1,348	-325	277	398	N/A
10/31/2022	1,216	-368	244	357	N/A
7/31/2022	1,091	-390	231	322	N/A
4/30/2022	970	-374	184	264	N/A
1/31/2022	860	-331	196	260	N/A
10/31/2021	761	-298	185	242	N/A
7/31/2021	673	-262	144	202	N/A
4/30/2021	602	-231	127	189	N/A
1/31/2021	536	-191	80	136	N/A
10/31/2020	480	-153	60	111	N/A
7/31/2020	431	-115	28	79	N/A
4/30/2020	391	-71	24	66	N/A
1/31/2020	360	-64	20	58	N/A
10/31/2019	333	-38	34	68	N/A
7/31/2019	303	-29	28	58	N/A
4/30/2019	273	-30	32	55	N/A
1/31/2019	243	-28	31	49	N/A
10/31/2018	214	-34	15	33	N/A
7/31/2018	190	-40	2	17	N/A
4/30/2018	171	-49	N/A	-1	N/A
1/31/2018	154	-49	N/A	-9	N/A
10/31/2017	139	-49	N/A	-8	N/A
7/31/2017	126	-45	N/A	-6	N/A
4/30/2017	113	-38	N/A	-8	N/A
7/31/2016	80	-36	N/A	-12	N/A
7/31/2015	54	-13	N/A	-3	N/A

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.6%).

Earnings vs Market: ZS is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: ZS is expected to become profitable in the next 3 years.

Revenue vs Market: ZS's revenue (16.2% per year) is forecast to grow faster than the US market (9% per year).

High Growth Revenue: ZS's revenue (16.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: ZS's Return on Equity is forecast to be high in 3 years time (26.1%)

Zscaler Future Growth

Future criteria checks 5/6

Key information

Recent future growth updates

Price target decreased by 7.1% to US$215

Consensus EPS estimates fall by 219%

Forecast breakeven date pushed back to 2027

Zscaler, Inc. Provides Earnings Guidance for the First Quarter and Full Fiscal Year 2025

Price target decreased by 8.6% to US$233

Forecast to breakeven in 2026

Recent updates

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Zscaler, Inc. to Report Q1, 2025 Results on Dec 02, 2024

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Insufficient new directors

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Zscaler Appoints Adam Geller as Chief Product Officer

Independent Director notifies of intention to sell stock

Chief Financial Officer recently sold US$1.4m worth of stock

Chief Financial Officer notifies of intention to sell stock

Price target decreased by 7.1% to US$215

Consensus EPS estimates fall by 219%

Full year 2024 earnings: EPS and revenues exceed analyst expectations

Forecast breakeven date pushed back to 2027

Zscaler, Inc. Provides Earnings Guidance for the First Quarter and Full Fiscal Year 2025

Zscaler Q4 Earnings: Scaling Back (Rating Downgrade)

Zscaler, Inc. to Report Q4, 2024 Results on Sep 03, 2024

Zscaler: Investors May Be Missing The Inflection On GAAP Profitability

Is Zscaler (NASDAQ:ZS) Using Debt In A Risky Way?

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Chief Legal Officer & Secretary recently sold US$1.8m worth of stock

Chief Financial Officer notifies of intention to sell stock

Zscaler: Bracing For Acceleration

Wipro Limited Launches an AI-Assisted Security and Risk Platform, Powered by Zscaler

Third quarter 2024 earnings: EPS and revenues exceed analyst expectations

Price target decreased by 8.6% to US$233

Is Zscaler, Inc. (NASDAQ:ZS) Trading At A 34% Discount?

Forecast to breakeven in 2026

Zscaler, Inc. Provides Earnings Guidance for the Fourth Quarter and Full Fiscal Year 2024

Zscaler, Inc. Appoints James Beer to Board of Directors

Zscaler: Upgrading To Buy Before Earnings

New minor risk - Profitability

New minor risk - Profitability

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Zscaler, Inc. to Report Q3, 2024 Results on May 30, 2024

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Zscaler, Inc. Introduces First of Its Kind Digital Experience Monitoring Copilot to Enable It Support and Operations with AI

Zscaler: The Gift Of Market Volatility (Rating Upgrade)

Zscaler, Inc. (NasdaqGS:ZS) agreed to acquire Airgap Networks Inc.

Zscaler: Unloved Market Leader

Chief Legal Officer & Secretary recently sold US$1.9m worth of stock

Chief Financial Officer notifies of intention to sell stock

Is It Too Late To Consider Buying Zscaler, Inc. (NASDAQ:ZS)?

Zscaler: This Is A Dip Well Worth Buying

Second quarter 2024 earnings: EPS and revenues exceed analyst expectations

Zscaler, Inc. Provides Earnings Guidance for the Third Quarter and Full Year of Fiscal 2024

Zscaler (NASDAQ:ZS) Has Debt But No Earnings; Should You Worry?

Zscaler: Too Risky To Buy Before Earnings (Rating Downgrade)

Now 26% undervalued

Zscaler Is Making An Attempt To Ignite Sales Growth

Independent Director exercised options and sold US$1.7m worth of stock

Zscaler, Inc. to Report Q2, 2024 Results on Feb 29, 2024

Zscaler Is Fully Valued, Take Profits Here (Rating Downgrade)

Zscaler, Inc. Announces Resignation of Dali Rajic as Chief Operating Officer

Zscaler, Inc. (NASDAQ:ZS) Not Flying Under The Radar

Zscaler Introduces Industry’s First Zero Trust SASE, Built on Zero Trust AI

Calculating The Intrinsic Value Of Zscaler, Inc. (NASDAQ:ZS)

Independent Director notifies of intention to sell stock

Independent Director recently sold US$5.1m worth of stock

Is It Too Late To Consider Buying Zscaler, Inc. (NASDAQ:ZS)?

Zscaler Unveils Ai-Powered Analytics Across Cyber Risk, Digital Experience, Saas Usage, and Workplace Trends

Independent Director exercised options and sold US$1.4m worth of stock

Now 20% undervalued

Consensus estimates of losses per share improve by 11%