Reading ZS? Track it free: the weekly brief, plus an alert if the thesis breaks. No credit card.
Track ZS free→Reading ZS? Track it free: the weekly brief, plus an alert if the thesis breaks. No credit card.
Track ZS free→NASDAQInformation TechnologySoftware - InfrastructureSnapshot 2026-06-15
Recent financial performance sits well below its industry cohort — worth keeping an eye on, though it has not freshly broken.
Recent financial performance is weak, and earnings quality cannot be assessed since the company was unprofitable over the past year. Management's recent track record has been fairly steady, while risk is elevated. The sector backdrop is a tailwind, and compared with sector peers, the company is typical. Peer multiples imply a price about 24% below where it trades (it looks expensive on this basis); the read is fair, but weakening. This analysis is provisional.
Daily closes. Earnings/event dots are placed inline.
A consensus fair price across 6 valuation methods, at three horizons. Current price $130.42. Estimates are diagnostics, not price targets. Short-horizon estimates are close to coin-flips, so confidence is a method-agreement read, not a prediction.
No-growth: today's peer multiple on trailing earnings. The headline read.
Embeds projected growth. Leans optimistic by design. Upside context.
We take the 12-month fair value above and grade our own number — how the market prices this name versus what we'd justify, and where the two diverge.
At $130 ZS trades at 45× p/e — 1.6× the 28× p/e peer median. The market is re-rating it beyond its own range; our $102 fair value is low-confidence here. Analysts: $145–$300. Not investment advice.
One valuation read at a 12-month horizon, plus how price compares to peers and the company's own history.
The market is pricing in roughly 28% of near-term growth above a flat-multiple fair value; not enough history to forecast a comparison. This describes what's priced in, not a forecast of the move.
Only a turbulent sector regime (Heating) — not the full expensive x weak x turbulent stack.
For similar setups historically (n=20,154): about 33% saw a 20%+ drawdown, and roughly 76% of those did not recover within the year. These are historical base rates for the cohort, not a forecast of this stock.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 1 of the last 3 quarter-over-quarter moves. Historically, Information Technology names rated weak grew net income 63% of the time over the next year (vs 62% for the rest of the cohort, n=2777).
Over the trailing year it converted -14.23x of net income into operating cash flow.
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, long-term interest rates, Fed net liquidity, real (inflation-adjusted) rates.
9 material management or governance events in the past 24 months, led by executive changes. Historically, Information Technology names rated neutral grew net income 64% of the time over the next year (vs 57% for the rest of the cohort, n=1040).
The next print and the backdrop around it (sector regime and the AI cycle). Context for the path, not a forecast of returns.
EPS estimate $1.03 → $1.09 (+5.3% / 30d). 41 raised, 0 cut, 42 covering analysts.
2 upgrades, 1 downgrade / 30d, 37 maintained. 83% of analysts rate Buy.
26 PT revisions / 30d. Avg target 19.0% above current price.
0 positive, 0 negative / 30d.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Met or beat guidance 100% of the last 1 guided quarters · 12.8% avg surprise
What a normal day, a bad day, and the worst of the last year would mean for a $10,000 position.
On a typical day, $10k can swing ±$199.
How much price usually moves either way.
On a bad day, this stock has moved -$625.
A rough but not unusual down day (about the 95th percentile).
In the worst 12 months, $10k could have lost $6,489.
Deepest peak-to-trough drop in the last year.
Past results, not a forecast. Not investment advice.
The most important moves since the prior daily snapshot.
No material changes since the prior snapshot.
as of 2026-06-15
Specific, dated things to watch for, each with what would confirm it and what would prove it wrong.
Why it matters: A drop below median growth would confirm a slowdown in the IT sector affecting Zscaler.
Confirms:Sector revenue growth reported below its median.
Disproves:Sector revenue growth remains above its median.
Recent news graded against this company's own objectives — whether it reinforces or challenges the thesis, and how confirmed it is.
No graded news catalysts for ZS yet.
Conditional scenarios: if X happens, the view would shift in this direction. These are not predictions.
Recent SEC 8-K filings ranked by likely impact, confidence, and recency.
Results of Operations and Financial Condition. On May 26, 2026, Zscaler, Inc. issued a press release announcing its financial results for the third fiscal quarter ended April 30, 2026. A copy of the press release is furnished herewith as Exhibit 99.1 and incorporated herein by reference. The information contained in this
Whether the overall read has been drifting up or down lately, and how it's changed since last week.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Long-thesis check; widest uncertainty.
$145.00 – $300.00 (median $200.00) · 33 analysts · as of 2026-06-11
Looks more expensive than peers.
Self-history needs ~20 months of data.
Trailing four: 2025-Q3, 2026-Q1, 2026-Q2, 2026-Q3
A side-by-side read on sector standing, valuation, and risk versus Systems Software.
| Stock | Sector standing | Valuation | Risk |
|---|---|---|---|
ZS Zscaler, Inc. | Typical Show detailsSector percentile: 60 of 100 | full | elevated |
MSFT Microsoft | Above typical Show detailsSector percentile: 84 of 100 | full | moderate |
PANW Palo Alto Networks | Typical Show detailsSector percentile: 42 of 100 | expensive | moderate |
CRWD CrowdStrike | Typical Show detailsSector percentile: 31 of 100 | expensive | moderate |
FTNT Fortinet | Above typical Show detailsSector percentile: 91 of 100 | expensive | moderate |
Not investment advice. As of 2026-06-15.
via XLK
Tailwind = sector leading the S&P 500; headwind = trailing. Both can be constructive. Historically, headwind regimes have averaged stronger forward returns than tailwind.
Context label only: describes the market state (e.g. real bear vs narrative panic, healthy uptrend vs late-stage froth). It is not a per-ticker buy/sell signal and does not predict factor performance.
Not investment advice. As of 2026-06-15.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Zscaler aims to achieve revenue between $3.3295 billion and $3.3325 billion for fiscal 2026.
Stated in 3 of last 3 quarters. Revenue grew from $719.2M in 2025-Q4 to $850.5M in 2026-Q3, indicating progress towards the $3.33B fiscal 2026 target. The trajectory is delivering on the stated growth priority.
“For the full year of fiscal 2026, the company expects: Revenue of approximately $3.3295 billion to $3.3325 billion.”
“For the full year of fiscal 2026, the company expects: Revenue of approximately $3.309 billion to $3.322 billion, growth of 24%.”
“For the full year of fiscal 2026, we expect: Revenue of approximately $3.282 billion to $3.301 billion.”
Zscaler targets non-GAAP operating income between $755 million and $757 million for fiscal 2026.
Stated in 3 of last 3 quarters. Operating income improved from -$51.8M in 2026-Q2 to -$29.6M in 2026-Q3, showing progress towards the $757M non-GAAP operating income target for fiscal 2026. The trajectory is delivering on this priority.
Zscaler aims for non-GAAP net income per share between $4.10 and $4.11 for fiscal 2026.
Stated in 3 of last 3 quarters. EPS improved from -$0.21 in 2026-Q2 to -$0.09 in 2026-Q3, indicating progress towards the $4.10 non-GAAP EPS target for fiscal 2026. The trajectory is delivering on this priority.
“For the full year of fiscal 2026, the company expects: Non-GAAP net income per share of $4.10 to $4.11.”
Why it matters: If revenue growth is less than 10%, it shows demand is getting weaker in a slowing market.
Confirms:Q2 revenue growth reported below 10% year over year.
Disproves:Q2 revenue growth stays above 10% year over year.
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. On April 15, 2026, Raj Judge, the EVP of Corporate Strategy of Zscaler, Inc. (the "Company") informed the Company of his resignation. Mr. Judge’s departure will be effective on July 31, 2026. In connection with his departure, the Company expects Mr. Judge to receive certain severance benefits in accordance with the Company’s Change of Control and S…
Results of Operations and Financial Condition. On February 26, 2026, Zscaler, Inc. issued a press release announcing its financial results for the second fiscal quarter ended January 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
Results of Operations and Financial Condition. On November 25, 2025, Zscaler, Inc. issued a press release announcing its financial results for the first fiscal quarter ended October 31, 2025. A copy of the press release is furnished herewith as Exhibit 99.1 and incorporated herein by reference. The information contained in this
Results of Operations and Financial Condition. On September 2, 2025, Zscaler, Inc. issued a press release announcing its financial results for the fourth fiscal quarter and fiscal year ended July 31, 2025. A copy of the press release is furnished herewith as Exhibit 99.1 and incorporated herein by reference. The information contained in this
“For the full year of fiscal 2026, the company expects: Non-GAAP income from operations of $755 million to $757 million.”
“For the full year of fiscal 2026, the company expects: Non-GAAP income from operations of $742 million to $748 million.”
“For the full year of fiscal 2026, we expect: Non-GAAP income from operations of $732 million to $740 million.”
“For the full year of fiscal 2026, the company expects: Non-GAAP net income per share of $3.99 to $4.02.”
“For the full year of fiscal 2026, we expect: Non-GAAP net income per share of $3.78 to $3.82.”