Zscaler, Inc. (ZS)
NASDAQInformation TechnologySoftware - InfrastructureSnapshot 2026-09-04
$169.80-4.50%
Close 2026-09-04 · 1-day change
NASDAQInformation TechnologySoftware - InfrastructureSnapshot 2026-09-04
QuarterlyIQ Insights · ZS
What must go right, what could break, what the price assumes, and what evidence comes next.
The current health of the standing investment case.
Recent financial performance sits below its industry cohort — worth keeping an eye on, though it has not freshly broken.
One-year growth currently built into the price, compared with our model's estimate.
| Measure | Marker shape | Value |
|---|---|---|
| Growth built into the price | circle | 9.8% |
| Our one-year growth estimate | diamond | 17.3% |
For each item: what to watch, what would become a concern, and what would make it less concerning.
A reporting-risk estimate, not a forecast of the stock-price response.
Historical relationships that met the evidence threshold. They do not prove cause or forecast a move.
Usually moved in the same direction.
Price observations: 365 days
Most sensitive to the broad stock market.
Based on historical daily prices through 2026-09-04.
Past price behavior in dollars on a $10,000 position. This does not measure permanent business risk.
How much price usually moves either way.
Use the underlying financial and sector pages to investigate the cause.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Growth built into the price is above our model estimate.
The price assumes 7.6 percentage points less one-year growth.
The one-year revenue growth assumption on Valuation.
Model as of 2026-09-04 · Compared with 68 industry peers · Company calendar date is not available
ZS — earnings miss
Dated 2026-09-03
Results of Operations and Financial Condition. On September 3, 2026, Zscaler, Inc. issued a press release announcing its financial results for the fourth fiscal quarter and fiscal year ended July 31, 2026. A copy of the press release is furnished herewith as Exhibit 99.1 and incorporated herein by reference. The information contained in this
Why it matters: If revenue growth is less than 10%, it shows demand is getting weaker in a slowing market.
Worry ifQ2 revenue growth reported below 10% year over year.
Less concerning ifQ2 revenue growth stays above 10% year over year.
Why it matters: A drop below median growth would confirm a slowdown in the IT sector affecting Zscaler.
Worry ifSector revenue growth reported below its median.
Less concerning ifSector revenue growth remains above its median.
Why it matters: Meeting this revenue target shows Zscaler is on track for its $3.33B goal for fiscal 2026.
Supportive ifQ4 revenue reported at or above $1B.
Worry ifQ4 revenue reported below $950M.
Why it matters: This improvement signals progress towards the $4.10 EPS target for fiscal 2026.
Supportive ifNon-GAAP EPS reported at -$0.05 or better.
Worry ifNon-GAAP EPS reported worse than -$0.10.
A larger daily loss that occurred about once in every 20 trading days.
Deepest peak-to-trough drop in the last year.
| Measure | Value | Meaning |
|---|---|---|
| Typical day | ±$246 on $10,000 · ±2.5% | How much price usually moves either way. |
| Bad day | $585 loss on $10,000 · 5.8% | A larger daily loss that occurred about once in every 20 trading days. |
| Largest peak-to-trough drop in the past year | $6,489 loss on $10,000 · 64.9% | Deepest peak-to-trough drop in the last year. |
Past year. 1.00 means similar movement; 1.20 means about 20% more.
Past year. 1.00 means similar movement to the sector. This is secondary context.
Latest 30 trading days, shown as an annual percentage.
Latest 252 trading days, shown as an annual percentage.
20-trading-day average in US dollars.
Trading days used by the source risk snapshot.
Past results, not a forecast. Not investment advice.
Why it matters: A key executive leaving may change Zscaler's strategy and how it works.
Worry ifNew executive hires are announced. They help improve or stabilize the strategy.
Less concerning ifNo new leaders are hired. There is no more instability among executives.
Why it matters: A drop in cash flow margin may show cash management problems. Staying above this level helps operations.
Worry ifFree cash flow margin stays at or above 22.8%.
Less concerning ifFree cash flow margin drops below 22.8%.
Why it matters: This figure shows Zscaler's ability to expand its customer base. Meeting or exceeding this target supports long-term growth.
Supportive ifARR reaches or exceeds $3.740 billion.
Worry ifARR falls below $3.740 billion.
Why it matters: Better operating income shows progress toward the $757M goal for fiscal 2026.
Supportive ifNon-GAAP operating income was -$20M or better.
Worry ifNon-GAAP operating income was worse than -$30M.
Why it matters: This guidance shows if Zscaler can maintain its growth momentum. Meeting or exceeding this range supports strong growth expectations.
Supportive ifQ4 revenue guidance falls within the range of $875 million to $878 million.
Worry ifQ4 revenue guidance is below $875 million.
Why it matters: This guidance shows how much money Zscaler makes. Reaching this range means good performance.
Supportive ifNon-GAAP EPS guidance falls between $4.10 and $4.11.
Worry ifNon-GAAP EPS guidance is below $4.10.
Why it matters: This acquisition could boost Zscaler's AI skills. Finishing it would help them in the market.
Supportive ifThe acquisition is done and part of Zscaler's services.
Worry ifThe acquisition is late or called off.
Why it matters: Revenue growth below 22% would signal a slowdown in Zscaler's growth momentum. This could impact investor confidence.
Worry ifFourth quarter revenue grows less than 22% year over year.
Less concerning ifFourth quarter revenue growth meets or exceeds 22%.
Why it matters: If income from operations is below $206 million, it shows profit problems. This may hurt future growth plans.
Worry ifNon-GAAP income from operations is less than $206 million.
Less concerning ifNon-GAAP income from operations meets or exceeds $206 million.
Why it matters: Costs above $33 million could signal deeper issues in managing growth and AI initiatives. This may concern investors.
Worry ifRestructuring costs are more than $33 million.
Less concerning ifRestructuring costs remain at or below $33 million.
Why it matters: ARR growth below 16.6% would indicate weakening demand for Zscaler's services. This could impact long-term growth prospects.
Worry ifARR growth is less than 16.6% for fiscal 2027.
Less concerning ifARR growth meets or exceeds 16.6% for fiscal 2027.