Zscaler (ZS) Sponsors Healthcare Zero Trust Model: A Game Changer for Cybersecurity Leadership?

• In September, the Alliance for Smart Healthcare Excellence announced that Zscaler, Inc. will sponsor the development of the Zero Trust Maturation Model (ZTMM), a new cybersecurity framework for healthcare organizations facing rising threats, such as ransomware, third-party vulnerabilities, and the expanding use of smart technology and AI in hospitals.
• This initiative marks the first extension of the Alliance's Smart Hospital Maturation Model, providing a vendor-neutral roadmap for advancing cybersecurity maturity across both modern and legacy healthcare systems.
• We'll examine how Zscaler's sponsorship of a healthcare-specific zero trust framework could influence its long-term growth and market positioning.

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Zscaler Investment Narrative Recap

Zscaler’s investment case centers on sustained demand for cloud-delivered cybersecurity, especially as large enterprises accelerate adoption of Zero Trust architectures. The company’s sponsorship of the healthcare-focused Zero Trust Maturation Model (ZTMM) highlights its sector reach, but is unlikely to materially shift the key short-term catalyst: rapid growth in enterprise Zero Trust adoption. However, the main risk, heightened competition from integrated cloud and cybersecurity giants, remains unchanged, as new frameworks don’t directly address potential market share pressures or margin compression.

Among several recent company announcements, Zscaler’s launch of advanced AI security capabilities in June 2025 directly addresses emerging threats and aligns with the ongoing shift toward protecting AI-powered healthcare and enterprise systems. This reinforces the company’s position as innovation-driven, supporting near-term revenue catalysts while leaving questions about competitive pressures unresolved.

By contrast, investors should also be aware that persistent pricing pressure from cloud platform rivals could continue to weigh on Zscaler’s long-term...

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

Zscaler’s narrative projects $4.7 billion in revenue and $139.8 million in earnings by 2028. This requires 20.5% yearly revenue growth and a $181.3 million increase in earnings from the current figure of -$41.5 million.

Uncover how Zscaler's forecasts yield a $324.66 fair value, a 5% upside to its current price.

Exploring Other Perspectives

Nine members of the Simply Wall St Community forecast Zscaler’s fair value from US$89.53 to US$324.66. While AI security innovation supports growth potential, market share risk from bigger competitors may affect future performance. See how other investors assess these tradeoffs.

Explore 9 other fair value estimates on Zscaler - why the stock might be worth as much as $324.66!

Build Your Own Zscaler Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• 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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