Is Zscaler (ZS) Embedding Zero Trust in IoT SIMs to Deepen Its Platform Advantage?

• In April 2026, IXT, a full MVNO specializing in secure IoT connectivity, announced it had integrated Zscaler’s Zero Trust Network Access into its SecureNet cellular platform at the SIM level, routing all device traffic through the Zscaler Zero Trust Exchange for inspection and policy enforcement.
• This move extends Zero Trust controls directly into global cellular infrastructure for high‑security, NIS2‑regulated industries, reducing reliance on VPNs and software agents for protecting widely distributed IoT and OT devices.
• Next, we’ll examine how embedding Zscaler’s Zero Trust controls at the SIM level for IoT and OT devices affects its investment narrative.

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Zscaler Investment Narrative Recap

To own Zscaler, you generally need to believe that cloud delivered Zero Trust security can keep winning budget as enterprises modernize networks, even as competition intensifies and the business remains unprofitable. The IXT integration extends Zscaler deeper into cellular IoT and OT, but it does not clearly change the near term focus on driving ARR growth while containing sales, infrastructure and AI related costs, nor does it remove the risk of margin pressure from larger vendors bundling security.

Among recent developments, the March 2026 data sovereignty expansion feels most relevant alongside the IXT news, as both speak directly to regulated sectors such as energy, utilities and critical infrastructure that face strict NIS2 and regional data rules. Together they highlight how Zscaler is trying to make its Zero Trust Exchange more attractive for governments and essential service providers, which ties back to the core catalyst of deeper adoption within large, compliance driven enterprises.

Yet, against this opportunity, investors should also understand how tighter IT budgets and slower branch or cloud refresh cycles could delay Zero Trust rollouts and...

Read the full narrative on Zscaler (it's free!)

Zscaler's narrative projects $5.2 billion revenue and $152.9 million earnings by 2029. This requires 19.9% yearly revenue growth and a $220.5 million earnings increase from -$67.6 million today.

Uncover how Zscaler's forecasts yield a $227.67 fair value, a 49% upside to its current price.

Exploring Other Perspectives

Some of the lowest estimate analysts saw a tougher road, assuming about 19.7 percent annual revenue growth and no profitability within three years, which contrasts sharply with the IoT and OT upside implied by the IXT deal and the concern that slower branch and SAP RISE projects could stretch out upsell timing, so it is worth comparing how different these views are before deciding what you believe.

Explore 8 other fair value estimates on Zscaler - why the stock might be worth 35% less than the current price!

Decide For Yourself

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

• A great starting point for your Zscaler research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Zscaler research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Zscaler's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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