Zscaler Q2 Earnings Preview: What To Watch And Why AI Fears Are Overblown (NASDAQ:ZS)
Zscaler's stock has dropped significantly from its November peak, but the author remains bullish long-term, anticipating strong Q2 earnings driven by the Z-Flex program and AI-driven demand. Despite concerns about AI disruption, the company's AI security portfolio is performing well, and its valuation, while peer-like, is justified by superior expected revenue growth. The article suggests that current levels offer a good opportunity for patient accumulation.
Zscaler partners with Bharti Airtel to launch AI & cyber threat research center
Zscaler and Bharti Airtel have partnered to launch the AI & Cyber Threat Research Centre – India, aimed at enhancing India's cyber resilience and safeguarding critical sectors. This initiative will involve public, private, and academic collaboration, focusing on monitoring threats, neutralizing attacks, and developing cybersecurity talent. The center will leverage Zscaler's Zero Trust Exchange platform and Airtel's network visibility to create a secure digital ecosystem for India.
Zscaler and Airtel Launch AI & Cyber Threat Research Center
Zscaler and Bharti Airtel have partnered to launch the AI & Cyber Threat Research Center – India, a multi-stakeholder initiative aimed at enhancing national cyber resilience and accelerating trusted AI adoption. The center will focus on protecting critical sectors, building a talent pipeline, and fostering collaboration between public and private entities. It will leverage Zscaler's global intelligence and Zero Trust Exchange platform, combined with Airtel's local operational reach, to proactively address evolving cyber threats in India.
Zscaler, Bharti Airtel announce launch of AI & Cyber Threat Research Centre
Zscaler and Bharti Airtel have partnered to launch the AI & Cyber Threat Research Centre - India, aimed at enhancing national cyber resilience and accelerating trusted AI adoption. This initiative will focus on protecting critical sectors, addressing evolving AI-driven threats, and building a future-ready cybersecurity talent pipeline in India. The collaboration combines Zscaler's global threat intelligence with Airtel's local operational reach and deep visibility into network traffic.
Zscaler's Z-Flex Adoption Surges: Will It Be a New Growth Engine?
Zscaler's new Z-Flex program, which allows customers to commit to spending upfront with flexibility to add or swap modules, is seeing significant early traction. Introduced in Q3 fiscal 2025, it generated over $175 million in Q1 fiscal 2026 contract value bookings, a 70% sequential increase. This initiative enhances revenue visibility, expands client relationships by encouraging multi-module adoption, and helps increase deal sizes, positioning Z-Flex as a potential key growth driver for Zscaler, despite competition from rivals offering similar bundled solutions.
Zscaler to Present at Upcoming Investor Conferences
Zscaler, Inc. (NASDAQ: ZS) announced its management team is scheduled to present at multiple upcoming investor conferences in March and April 2026. These events include the Morgan Stanley Technology, Media & Telecom Conference, Loop Capital Markets Investor Conference, Stifel NYC Technology One-on-One Conference, Cantor Global Technology & Industrial Growth Conference, and Wells Fargo Software Symposium. Webcasts for applicable sessions will be available on Zscaler's Investor Relations website.
Zscaler CEO to speak at Morgan Stanley and four other tech investor events
Zscaler (NASDAQ: ZS) announced that its management team, including CEO Jay Chaudhry and CFO Kevin Rubin, will present at five investor conferences in March and April 2026. These conferences include events hosted by Morgan Stanley, Loop Capital, Stifel, Cantor Global, and Wells Fargo, with most sessions featuring 1x1 investor meetings. Webcasts for available sessions will be accessible on the Zscaler Investor Relations website.
Zscaler AI Security Suite Launch Meets Weak Share Price And Insider Sales
Zscaler has launched its new AI Security Suite to address security risks in enterprise AI deployments, following reports of increasing AI usage and security gaps. This launch occurs as Zscaler's stock (NasdaqGS:ZS) has seen a significant decline over the past 30 days and year, despite a 3-year return of over 30%. The company's stock is currently trading below analyst consensus targets and an estimated fair value, but significant insider selling has been noted as a potential risk.
India has gained momentum in creating opportunity for AI: Zscaler CEO
Zscaler CEO, Chairman, and Founder Jay Chaudhry stated that India has gained significant momentum in creating opportunities for AI due to proactive policies, attracting investments with many multinationals setting up global capability centers. He highlighted that AI represents a "mega wave" of new technology that will disrupt and change business operations, presenting vast opportunities for companies in India and globally. Chaudhry also praised Prime Minister Narendra Modi's leadership and new labor laws for making India an attractive destination for AI development and entrepreneurship.
Future-Proof Your Security with the First Quantum-Ready Security Service Edge (SSE)
Zscaler has announced that its Security Service Edge (SSE) is now quantum-ready, integrating hybrid Post-Quantum Cryptography (PQC) key exchange into Zscaler Internet Access (ZIA) inline inspection. This allows organizations to decrypt and inspect quantum-encrypted traffic at scale, providing defense against "harvest now, decrypt later" (HNDL) attacks and securing IPsec VPN tunnels with post-quantum, pre-shared keys (PPK). The new capabilities address the challenges of transitioning to quantum-resilient encryption, helping organizations meet compliance mandates and ensure business continuity in the face of emerging quantum threats.
Zscaler (ZS) Stock Dips While Market Gains: Key Facts
Zscaler (ZS) stock recently dipped by -2.88%, underperforming the broader market which saw slight gains for the S&P 500, Dow, and Nasdaq. The company's shares have fallen 16.95% over the last month, and investors are anticipating its upcoming earnings report on February 26, 2026, with projected EPS of $0.89 and revenue of $798 million. Zscaler currently holds a Zacks Rank of #4 (Sell) and a Forward P/E of 46.44, trading at a premium compared to its industry average.
Twilio, Zscaler, Snowflake, UiPath, and GitLab Shares Are Falling, What You Need To Know
Shares of Twilio, Zscaler, Snowflake, UiPath, and GitLab fell in the afternoon session due to investor fears that artificial intelligence could disrupt the software industry. This "AI Panic" led to a broad sell-off across the sector, driven by concerns over new 'agentic AI' tools potentially dismantling traditional SaaS business models. The market's reaction reflects growing anxiety about the impact of the AI boom on established software companies.
Assessing Zscaler (ZS) Valuation After Quantum Readiness And Zero Trust Security Updates
Zscaler recently updated investors on its quantum-ready security and zero-trust approach, following a choppy period for its stock. While a narrative fair value suggests it's 2.9% overvalued at $177.72, Simply Wall St's DCF model indicates it could be undervalued at $297.08 per share. Investors are encouraged to weigh both perspectives and consider risks and rewards.
United States Next-Generation Firewall Market to Grow at 12%
The United States Next-Generation Firewall (NGFW) Market is projected to grow at a CAGR of 12% from 2024 to 2031, driven by increasing cyber threats, cloud adoption, and integration with Zero Trust and SASE architectures. North America currently dominates the market, while the Asia-Pacific region is the fastest-growing. Key players include Cisco, Fortinet, Palo Alto Networks, and Check Point, with recent developments focusing on AI-enhanced platforms, SASE integration, and zero-trust segmentation.
Zscaler-SquareX Deal Boosts Zero Trust, Secure Browsing Capabilities
Zscaler has acquired SquareX, an early-stage startup specializing in secure web browser technology, to enhance its Zero Trust Exchange platform. This acquisition aims to extend network and application access policy enforcement to browsers on both managed and user-owned devices, addressing a critical gap in browser-native threat detection. The deal positions Zscaler alongside competitors like CrowdStrike and Palo Alto Networks, which have also invested in secure browser solutions, highlighting a growing industry focus on browser security as the primary user interface for work activities.
Looking Into Zscaler Inc's Recent Short Interest
Zscaler Inc (NYSE: ZS) has seen a 10.85% increase in its short interest, with 7.68 million shares now sold short, representing 7.46% of its float. It would take traders 4.13 days to cover their short positions on average. The rising short interest suggests increased bearish sentiment from investors, and Zscaler's short interest is higher than the average for its peer group.
Palo Alto Networks to Report Q2 Earnings: How to Play the Stock
Palo Alto Networks is preparing to report its fiscal second-quarter 2026 results on Feb. 17, with projected revenues between $2.57-$2.59 billion. Despite expectations of increased adoption of its AI-powered security offerings and large deal wins, challenges such as softening IT spending and decelerating Next-Generation Security (NGS) ARR growth, alongside a high valuation, lead to a "Sell" recommendation from Zacks Investment Research. While the company's "platformization" strategy has driven growth and secured larger deals, macroeconomic uncertainties may temper its short-term prospects.
Your Encryption Is Already Outdated. A $6.15 Trillion Fix Is Underway
Worldwide IT spending is projected to reach $6.15 trillion in 2026, with a significant shift towards post-quantum cryptography migration and agentic AI oversight in cybersecurity. Companies like Quantum Secure Encryption Corp. (QSE), Zscaler, CrowdStrike, BCE, and SAP are central to this realignment. QSE is hosting a webinar to educate organizations on preparing for post-quantum threats, while Zscaler, CrowdStrike, and BCE/SAP are making strategic moves to enhance security solutions and digital sovereignty.
Barclays upgrades Zscaler stock to Overweight despite lowering price target
Barclays upgraded Zscaler (NASDAQ: ZS) from Equalweight to Overweight, despite lowering its price target from $264.00 to $228.00. The new target still indicates significant upside from the current price, and the upgrade comes despite concerns about Zscaler's long-term growth trajectory potentially dipping below 20% by 2028. Zscaler maintains a strong revenue growth rate and gross profit margin, with analysts expecting net income growth this year, and the company has recently introduced an AI Security Suite and reinforced its leadership team.
|Zscaler Inc. (ZS) Expands Cybersecurity Edge Through SquareX and AI Suite
|Zscaler Inc. (ZS) is strengthening its cybersecurity offerings through its recent acquisition of SquareX and the introduction of a new AI Security Suite. SquareX aims to extend Zero Trust security directly into browsers, improving protection for unmanaged devices, while the AI Security Suite helps companies manage and secure their growing use of artificial intelligence tools. These strategic moves are expected to boost Zscaler's growth in the high-growth cybersecurity market.
Zscaler (ZS) Acquires ZeroTrust
Zscaler (ZS) has acquired SquareX to enhance its ZeroTrust capabilities by integrating SquareX's Browser Detection and Response (BDR) solution. This move aims to secure SaaS and private applications across various devices. Despite a recent stock dip, analysts remain bullish on Zscaler, with a median target price suggesting significant upside.
Is Trending Stock Zscaler, Inc. (ZS) a Buy Now?
Zscaler (ZS) has been trending on Zacks.com, prompting an analysis of its recent performance and future prospects. Despite a recent stock decline, Zacks maintains a "Hold" rating due to factors like significant earnings estimate revisions and robust revenue growth forecasts. The article also highlights that while Zscaler's financials look strong, its valuation suggests it is currently trading at a premium to its peers.
Down 18% In Last 12 Months, Can Zscaler Stock Deliver Strong Returns in 2026?
Zscaler delivered exceptional Q1 results for fiscal 2026, with annual recurring revenue growth accelerating to 26% year-over-year and RPO growth hitting 35%. The company's AI Security pillar exceeded its $400 million annual recurring revenue target three quarters early. Based on current execution, ZS stock could reach $264 by July 2028, implying a total return of 51% from the current price of $174, or roughly 18% annual growth over the next 2.5 years.
Prospera Financial Services Inc Takes $6.47 Million Position in Zscaler, Inc. $ZS
Prospera Financial Services Inc initiated a new position in Zscaler (NASDAQ:ZS) during the third quarter, acquiring 21,588 shares valued at approximately $6.47 million. Despite company insiders being net sellers of the stock recently, institutional investors hold a significant portion (46.45%), and analysts maintain a consensus "Moderate Buy" rating with an average target price of $317.63. Zscaler recently beat revenue expectations and provided strong FY2026 EPS guidance, trading near $174.34.
|Zscaler Inc. (ZS) Expands Cybersecurity Edge Through SquareX and AI Suite
Zscaler Inc. (ZS) is strengthening its cybersecurity offerings with the acquisition of SquareX and the launch of a new AI Security Suite. Cantor Fitzgerald reiterated an Overweight rating, noting SquareX will boost growth by extending Zero Trust security into browsers. The AI Security Suite provides enterprises with visibility and control over AI tool usage, enabling secure adoption of new technologies.
ProShare Advisors LLC Lowers Holdings in Zscaler, Inc. $ZS
ProShare Advisors LLC decreased its stake in Zscaler, Inc. by 19.7% in the third quarter, selling 41,964 shares and now holding 170,601 shares valued at approximately $51.12 million. Despite this, other hedge funds increased their positions, and insiders sold shares worth $4.47 million in the last three months. Analysts maintain a "Moderate Buy" rating with a consensus price target of $317.63, following Zscaler's beat on quarterly EPS and revenue.
Zscaler Bolsters Zero Trust Arsenal with Acquisition of Browser Security Firm SquareX
Zscaler has acquired browser security firm SquareX to enhance its Zero Trust Exchange platform, integrating browser-native threat protection. This acquisition allows Zscaler to offer enterprise-grade security within common browsers like Chrome and Edge, addressing threats like phishing and data leakage from AI tools, particularly beneficial for BYOD environments. This move signifies Zscaler's strategy to move beyond traditional security hardware and strengthen its presence in the cybersecurity landscape through targeted acquisitions.
Zscaler stock acquires SquareX to expand browser security capabilities
Zscaler has acquired SquareX, a browser detection and response firm, to bolster its browser security offerings, following a trend of acquisitions in the secure browser market by competitors like CrowdStrike. Cantor Fitzgerald reiterated an Overweight rating on Zscaler, highlighting SquareX's technology which enhances security on unmanaged devices without needing secure third-party browsers. This move positions Zscaler to capitalize on the projected significant growth in the enterprise secure browser category.
Zscaler Buys SquareX to Extend Zero Trust Protections Into the Browser
Zscaler has acquired SquareX to enhance its Zero Trust Exchange platform by extending protection directly into standard web browsers like Chrome and Edge. This acquisition aims to secure users on unmanaged devices without the need for third-party enterprise browsers, thereby addressing security weaknesses often found in legacy VPNs and virtual desktop infrastructure. The integration will allow organizations to apply precise Zero Trust policies to SaaS and private applications across managed and BYOD devices.
Zscaler (ZS) Enhances Security with SquareX Acquisition
Zscaler (ZS) has acquired SquareX to strengthen its Zero Trust security offerings, integrating advanced capabilities for browser security without requiring enterprise browsers. This strategic move aims to adapt to the evolving AI landscape and enhance security for businesses. Despite recent insider selling, Zscaler shows strong revenue growth and healthy gross margins, and its valuation metrics suggest potential undervaluation.
Zscaler Acquires SquareX to Enhance Security Capabilities
Zscaler has acquired SquareX to strengthen its zero-trust security capabilities, allowing organizations to deploy lightweight browser extensions without needing third-party enterprise browsers or full security agents. This acquisition is expected to enhance Zscaler's competitive edge in the AI era and expand its market share by addressing the growing demand for advanced cybersecurity solutions. Wall Street analysts forecast a significant rise in Zscaler's stock price over the next 12 months, with an average target of $325.62, reflecting positive sentiment despite recent price target adjustments by some firms.
Zscaler Crashed 15% to 52-Week Lows: Why Analysts Expect a $366 Recovery in 2026
Zscaler (ZS) shares plunged by over 26% in a month, hitting near 52-week lows, driven by fears of an "AI Replacement" narrative and concerns over security gaps due to surging enterprise AI usage. Despite this, analysts like Mizuho foresee a strong recovery to $366 by 2026, citing Zscaler's "data advantage" and strategic acquisition of SquareX. The company maintains that its Zero Trust platform offers critical cost savings and security for the AI era, with Q2 earnings on February 26 expected to be a pivotal moment for stock stabilization.
Zscaler Purchases SquareX to Secure Browsers Without Agents
Zscaler has acquired SquareX, a browser security startup, to enhance browser-based security for its customers without requiring agents or standalone enterprise browsers. The acquisition aims to address customer demand for stronger device posture checks and data loss prevention (DLP) redaction while maintaining the use of standard browsers. Zscaler's CEO, Jay Chaudhry, highlighted that SquareX's lightweight browser extension technology centralizes security policies in the cloud, simplifying deployment and management compared to traditional agent-based solutions or separate enterprise browsers.
Zscaler acquires browser security firm SquareX to enhance threat protection
Zscaler has acquired browser security company SquareX to bolster its capabilities against online threats like phishing and session hijacking. SquareX's technology offers real-time browser monitoring, protection via a lightweight extension, and isolated browser sessions. Zscaler plans to integrate this into its Zero Trust Exchange Platform to enhance user security on standard browsers.
Zscaler stock hits 52-week low at 164.65 USD
Zscaler Inc. (ZS) stock recently reached a 52-week low of 164.65 USD, marking a significant downturn for the cybersecurity firm with a 17.06% decline over the past year and 41.45% over six months. Despite challenges, the company maintains strong gross profit margins and a cash surplus, with InvestingPro analysis suggesting undervaluation and analysts revising earnings estimates upward. Zscaler is also focusing on innovation, launching an AI Security Suite and making key leadership appointments.
Zscaler extends zero-trust security to browsers with SquareX acquisition
Zscaler has acquired SquareX, a Singapore-based browser detection and response startup, to extend its zero-trust security capabilities directly into web browsers. This acquisition aims to protect against phishing, data leakage, and AI risks by integrating browser controls into Zscaler’s Zero Trust Exchange, eliminating the need for a separate enterprise browser. The move addresses the growing security challenges presented by browsers being central to enterprise activities and sensitive data handling.
How Organizations Can Make a Successful Transition to Post-Quantum Cryptography (PQC)
The article provides a four-step guide for organizations to transition to Post-Quantum Cryptography (PQC) to protect against future quantum computing threats, particularly "Harvest Now, Decrypt Later" (HNDL) attacks. It emphasizes planning a hybrid strategy, inventorying cryptographic assets, and implementing PQC algorithms for key exchange and authentication. The author stresses that the transition is a continuous process crucial for ensuring long-term digital security.
Zscaler Integrates SquareX to Deliver Stronger Browser Security Protections
Zscaler has acquired SquareX to enhance its browser security capabilities, extending its Zero Trust framework to better secure unmanaged devices and BYOD scenarios. This integration allows Zscaler to embed lightweight security extensions into standard browsers, eliminating the need for traditional, vulnerable VPNs or costly VDI solutions. The move aims to protect data and AI interactions based on risk profiles, strengthening Zscaler's position in enterprise security.
Zscaler Acquires SquareX to Enhance Zero Trust Browser Security
Zscaler has acquired SquareX to extend its Zero Trust capabilities directly into standard web browsers, enhancing security for the AI era. This acquisition allows organizations to secure users on any browser via lightweight extensions, eliminating the need for third-party enterprise browsers or full agents. The integration of SquareX aims to provide enterprise-grade Zero Trust protection for unmanaged and BYOD devices, addressing security gaps and replacing outdated access tools with browser-native policies.
Zscaler Stock To $118?
Zscaler (ZS) stock has dropped by 26.7% in less than a month, falling from $231.16 to $169.39, and Trefis analysts believe it could decline further, potentially to $118 due to its high valuation. Historically, sharp dips in ZS stock, defined as a 30% or more drop in under 30 days, have seen a median 12-month return of 51%. Despite strong financial quality checks, the article suggests waiting before buying the dip and considers a multi-asset portfolio approach to mitigate risk.
Zscaler to Host Second Quarter Fiscal Year 2026 Earnings Conference Call
Zscaler, Inc. (NASDAQ: ZS) announced it will release its second quarter fiscal year 2026 earnings on Thursday, February 26, 2026, after market close. The company will host an investor conference call on the same day at 1:30 p.m. Pacific time to discuss the results, with details provided for webcast and dial-in registration. Zscaler specializes in cloud security and zero trust solutions for businesses and government agencies globally.
Zscaler snaps up SquareX to strengthen browser security without enterprise browsers
Cloud security company Zscaler Inc. has acquired browser security firm SquareX Ltd. for an undisclosed sum. SquareX specializes in securing browsers against threats like phishing and session hijacking using a lightweight extension, eliminating the need for separate corporate browsers. This acquisition aims to enhance Zscaler's Zero Trust Exchange Platform, providing advanced browser security by embedding extensions directly into standard browsers.
Zscaler (ZS) Enhances Browser Security with SquareX Acquisition
Zscaler (ZS) has acquired SquareX to bolster its zero trust capabilities within browsers, aligning with its strategy to integrate security solutions directly into browsers for the AI era. The acquisition aims to enhance security and remove reliance on third-party browsers. While Zscaler shows robust revenue growth, it faces challenges with operating and net margins, and investors should consider its financial metrics and market conditions despite the strategic acquisition.
Zscaler acquires Singapore cybersecurity startup to secure browsers amid AI tool surge
Zscaler has acquired SquareX, a Singapore-based cybersecurity startup, to enhance its browser security capabilities. This acquisition aims to help enterprises manage the challenges posed by new AI tools and personal devices, moving away from what Zscaler's CEO calls "fundamentally flawed" legacy VPNs and VDIs. The deal integrates SquareX's browser security technology into Zscaler's platform to offer more robust protection.
Zscaler Aims To Boost Browser Security With Acquisition Of SquareX
Zscaler has acquired browser security startup SquareX to enhance its zero-trust security platform, specifically deepening its capabilities in standard browsers. SquareX developed a "browser detection and response" platform, providing lightweight security extensions for various browsers, which Zscaler believes will further incentivize organizations to move away from traditional VPNs and VDI, which CEO Jay Chaudhry described as "fundamentally flawed." This is Zscaler's third acquisition in the past year, following SPLX and Red Canary, underscoring its commitment to zero-trust architecture in the face of evolving cyber threats.
Zscaler Acquires Squarex To Advance Zero Trust Browser Security For The AI Era
Zscaler has acquired Squarex to enhance its zero trust browser security capabilities, especially for the AI era. This move is expected to bolster Zscaler's offerings in protecting user data and ensuring secure browsing environments amidst evolving cyber threats. The acquisition focuses on integrating Squarex's technology to strengthen Zscaler's position in the cybersecurity market.
Why Zscaler (ZS) Stock Is Nosediving
Shares of cloud security platform Zscaler (NASDAQ:ZS) fell significantly after new AI models from Anthropic and OpenAI raised concerns about autonomous agents cannibalizing traditional software. The market is aggressively repricing the entire software application layer as these models threaten recurring revenue by commoditizing sophisticated workflows into low-cost API calls. Zscaler's stock has been volatile and is down 22.1% year-to-date, trading well below its 52-week high.
Zscaler-SquareX deal targets risky legacy VPNs with browser-based security
Zscaler announced the acquisition of SquareX on February 5, 2026, to enhance its Zero Trust browser security capabilities for the AI era. This deal integrates lightweight browser extensions into standard browsers like Chrome and Edge, aiming to secure unmanaged and BYOD devices without requiring full agent deployments or third-party browsers, thereby replacing vulnerable legacy VPNs and VDIs. While the acquisition date was confirmed, the financial terms of the transaction were not disclosed.
Zscaler to Host Second Quarter Fiscal Year 2026 Earnings Conference Call
Zscaler, Inc. (NASDAQ: ZS) will release its second-quarter fiscal year 2026 earnings on Thursday, February 26, 2026, after the market closes. The company will host an investor conference call on the same day at 1:30 p.m. Pacific time to discuss the results. Interested parties can register to join the call by phone or access a live webcast on the Zscaler investor relations website.
Workiva, Zscaler, Commerce, Box, and LiveRamp Shares Plummet, What You Need To Know
Shares of Workiva, Zscaler, Commerce, Box, and LiveRamp all dropped significantly due to investor fears of disruption from artificial intelligence, leading to a broad-based sell-off in the software sector. The market reacted strongly after AI company Anthropic released automation tools for the legal profession, suggesting that no specialized software niche might be safe from AI "cannibalization." Workiva, in particular, has seen its shares decline by 16.5% year-to-date.
