ZS Stock Recent News

ZS' strong financial performance on the back of AI-driven innovation and leading Zero Trust security solutions makes the stock worth holding.

SAN JOSE, Calif., April 01, 2025 (GLOBE NEWSWIRE) -- Zscaler, Inc . (NASDAQ: ZS), the leader in cloud security, collaborated with T-Mobile in late 2023 to rapidly deploy hybrid zero trust throughout its operations. In just three months, T-Mobile implemented the Zscaler Zero Trust Exchange™ AI-powered cloud security platform, which is designed to secure access to applications and the internet, regardless of user location or device. Now, one year later, the roll-out has further secured the Un-carrier's infrastructure against potential cyber threats and over that time, T-Mobile is retiring its traditional VPNs. By reducing the need for traditional VPNs and providing secure and direct access to applications, T-Mobile's employees and other team members can access needed resources efficiently and effectively, whether they are in the office, at home or on the go.

I reiterate a buy rating for ZS, as the share price has reached my target, and I see further upside potential. The new GTM model has proven effective, with improved sales productivity and significant growth in billings and large deal activity. ZS's platform is resonating well with customers, driving platform consolidation and higher attach rates, especially in the upmarket segment.

I continue to remain bullish on Zscaler, Inc. as it sees ongoing enterprise momentum in its $100K+ and $1M+ ARR cohort driven by its AI-powered product roadmap and increasing sales productivity. Zscaler set a new standard called Zero Trust Everywhere and they are looking to triple the number of enterprise customers under the standard in 18 months. Plus their AI-powered products are seeing growing adoption with revenue from their emerging products expected to reach the mid-twenties percent of all business in FY25.

Josh Brown, CEO of Ritholtz Wealth Management, joins CNBC's "Halftime Report" to explain why he thinks Zscaler is about to break out.

Zscaler has outperformed most growth stocks in 2024, rising nearly 20% year to date, driven in part by a recent "beat and raise" in Q2. The company benefits from a shift towards cloud-based security tools, essential for modern data storage and AI applications, unlike traditional firewalls. Zscaler's net retention rates improved to 115% in Q2, indicating robust customer spending despite a challenging economic environment.

Zscaler is a leading cybersecurity firm riding long-term tailwinds. The company delivered 23% YoY revenue growth and expanded non-GAAP operating margins to 21.7%. Management has suggested optimism, but I am skeptical and expect revenue growth to decelerate to 16-18% in the upcoming fiscal year.

CHANTILLY, Va.--(BUSINESS WIRE)--Red River recognized as Zscaler Americas Public Sector Partner of the Year for its leadership and commitment to advancing zero trust security.

Software stocks aren't always favored, but now is a good time to own them. Analysts are lifting targets for leading names and indicating significant gains for stocks like Snowflake NYSE: SNOW, Okta NASDAQ: OKTA, CrowdStrike NASDAQ: CRWD, Workday NASDAQ: WDAY, and Zscaler NASDAQ: ZS.

While most investors favor bull markets, bear markets offer unique opportunities to buy strong companies at lower prices. As the Nasdaq pulled back on Tuesday, analysts evaluated tech stocks for buying opportunities and identified potential long-term investments.