Zscaler, Inc. is a cloud security company operating worldwide. It offers cyberthreat protection products such as Zero Trust SASE, Zscaler Internet Access, Zscaler Private Access, Zero Trust Browser, Zscaler Digital Experience, Zero Trust Branch, and Zero Trust Cloud. The company also provides Security for AI, data security services, and Agentic Security Operations solutions. It serves industries including automotive, airlines and transportation, consumer goods and retail, energy, financial services, healthcare, insurance, manufacturing, media and communications, public sector and education, technology, and telecommunications. Formerly known as SafeChannel, Inc., it changed its name to Zscaler, Inc. in August 2008. Zscaler was incorporated in 2007 and is headquartered in San Jose, California.
Zscaler's first investor day since 2021 sets long-term AI targets, lifting shares
▲
Investor day sets $8–10B ARR target by 2031 Zscaler held its first investor day since 2021, reaffirming fiscal 2027 guidance and targeting $8–10 billion in annual recurring revenue by 2031. Management called agentic AI its biggest opportunity and expanded its addressable market to $220 billion. Shares rose about 4% as investors gained long-term visibility.
This is the main new event that answers why ZS is moving, giving a long-term growth roadmap.
Stifel raises price target to $235 on AI prospects Stifel raised its Zscaler price target to $235 from $200 and kept a Buy rating after the analyst day. It called the $8 billion ARR base case achievable and said the $10 billion upside case would need faster growth. The note reinforced positive sentiment and supported the stock.
Analyst reaction directly reflects how the new investor day information affects ZS's perceived value.
New IBM and Red Hat partnership for AI-era app security Zscaler launched Autonomous Application Shield with IBM and Red Hat to protect private apps from AI-driven threats. The product addresses the shrinking exploit window and is in early access. This expands Zscaler's platform and could drive future demand, supporting the stock.
A new product collaboration shows Zscaler is innovating to capture AI security demand, a positive driver.
CEO warns AI agents are the new weak link, boosting security demand CEO Jay Chaudhry said AI agents are the biggest security risk, as rogue agents can be hijacked and operate at machine speed. His comments highlight the need for Zscaler's zero-trust platform. The cybersecurity ETF hit a record high as AI agent risks drive spending, supporting demand for Zscaler.
This explains the demand backdrop for Zscaler's products and why investors see growth potential.
IBM Teams With Zscaler and Red Hat on Real-Time App Security
International Business Machines announced a new collaboration with Zscaler and Red Hat to tighten application security for enterprise clients. The joint effort combines IBM and Red Hat software platforms with Zscaler threat intelligence to provide real-time protections at the application layer. The partners plan to coordinate vulnerability discovery, automated policy updates, and validated software remediation workflows for shared customers. International Business Machines is a US-based IT group with a reported market value of about $214.0 billion, and its integrated solutions and services span the Americas, Europe, the Middle East, Africa and the Asia Pacific. One figure to watch is how much of IBM's reported US$24.6b of annual recurring revenue comes from security and hybrid cloud offerings connected to Red Hat and Zscaler style deployments.
Cybersecurity & Digital Trust › Cloud & Workload Security ▲Technology
Cybersecurity & Digital Trust › Network Security & SASE ▲Technology
Cybersecurity & Digital Trust › Endpoint & Network Security Technology
0ZC.XETRA · Technology · Positive Zscaler's threat intelligence is being combined with IBM and Red Hat platforms in the joint real-time app security effort.
IBM · Technology · Positive IBM announced a collaboration with Zscaler and Red Hat to deliver real-time application-layer security for enterprise clients.
ZS · Technology · Positive Zscaler's threat intelligence is being combined with IBM and Red Hat platforms in the joint real-time app security effort.
Red Hat, Inc. · Technology · Positive Red Hat software platforms are part of the joint effort with IBM and Zscaler to provide real-time application security.
Zscaler Reaffirms Fiscal 2027 Outlook and Expands AI Security Partnership With IBM and Red Hat
Zscaler reaffirmed its fiscal 2027 outlook, guiding first-quarter revenue to about US$935 million to US$939 million and full-year revenue to roughly US$3.91 billion to US$3.94 billion, while outlining a long-term ambition for much higher annual recurring revenue. The company also announced a collaboration with IBM and Red Hat aimed at protecting private applications during the gap between vulnerability disclosure and patching. The reaffirmed guidance supports Zscaler's near-term execution story, though slower expected revenue growth remains a key risk if competition tightens or deal cycles lengthen. Zscaler's narrative projects US$5.3 billion in revenue and US$178.4 million in earnings by 2029, requiring 16.6% yearly revenue growth and a US$241.6 million earnings increase from negative US$63.2 million today. More cautious analysts assume revenue of about US$5.2 billion and earnings near US$16 million by 2029, a more restrained view of how quickly Zscaler's newer security pillars could scale.
Cybersecurity & Digital Trust › Network Security & SASE ▲Technology
Cybersecurity & Digital Trust › Cloud & Workload Security ▲Technology
Cybersecurity & Digital Trust › Endpoint & Network Security ▲Technology
0ZC.XETRA · Capital · Positive Zscaler reaffirmed its fiscal 2027 outlook and long-term ARR ambition.
0ZC.XETRA · Technology · Positive Zscaler announced an AI security collaboration with IBM and Red Hat for private application protection.
ZS · Capital · Positive Zscaler reaffirmed its fiscal 2027 revenue guidance and long-term ARR ambition.
ZS · Technology · Positive Zscaler announced an AI security collaboration with IBM and Red Hat for private application protection.
IBM · Technology · Positive IBM collaborates with Zscaler and Red Hat on protecting private applications during the vulnerability-to-patch gap.
Red Hat, Inc. · Technology · Positive Red Hat collaborates with Zscaler and IBM on protecting private applications during the vulnerability-to-patch gap.
Zscaler Partners With IBM and Red Hat on Private App Security
Zscaler announced a new partnership with IBM and Red Hat to help secure private applications during active vulnerability windows. The collaboration combines Zscaler's Autonomous Application Shield with IBM and Red Hat remediation tools to deliver application-specific protections, while Lightwell supplies validated open source fixes. The joint solution targets real-time safeguards against exploitation attempts, including those using AI-powered and opportunistic attack methods. Zscaler, a US software provider with a market cap of $32.9b, runs a cloud-based security platform that inspects traffic and enforces access rules for enterprises worldwide. The company said the key markers ahead are early access adoption of Autonomous Application Shield with Lightwell by large enterprises and any contribution to annual recurring revenue tied to application shielding and AI-driven response.
Cybersecurity & Digital Trust › Cloud & Workload Security ▲Technology
Cybersecurity & Digital Trust › Network Security & SASE ▲Technology
Cybersecurity & Digital Trust › Endpoint & Network Security ▲Technology
Cybersecurity & Digital Trust › Identity & Access Management Technology
0ZC.XETRA · Demand · Positive Zscaler's Autonomous Application Shield is the centerpiece of the new IBM/Red Hat partnership targeting enterprise adoption and ARR growth.
ZS · Demand · Positive Zscaler's Autonomous Application Shield is the centerpiece of the new IBM/Red Hat partnership targeting enterprise adoption and ARR growth.
IBM · Demand · Positive IBM's remediation tools are part of the joint Zscaler/Red Hat private-app security solution, expanding its security offering to enterprises.
Red Hat, Inc. · Demand · Positive Red Hat's remediation tools are integrated into the joint solution to secure private applications during vulnerability windows.
Stifel Raises Zscaler Price Target to $235 on AI Cybersecurity Prospects
Stifel raised its price target on Zscaler Inc to $235 from $200 on Tuesday and maintained its Buy rating, citing the cybersecurity firm's first analyst day since 2021. At the event, Zscaler management outlined its strategy, broader product lineup, go-to-market priorities and mid-term financial model, and made a strong case for both securing AI and using AI to improve security, the analysts said. The biggest surprise was a fiscal 2031 annual recurring revenue target: Zscaler gave a base case of more than $8 billion in ARR, a 17% compound annual growth rate, and an upside case of $10 billion, or 22% growth, on AI tailwinds. Stifel said the base case looked achievable and was in line with fiscal 2027 guidance, while the upside case would require a reacceleration in growth that the brokerage said was possible but not something it was underwriting yet. Profitability targets were largely in line with expectations, with Zscaler guiding to a fiscal 2031 operating margin of 27% to 30% and a free cash flow margin of 29% to 32%, and management reaffirmed its first-quarter and full-year fiscal 2027 targets, which the analysts called a positive after the recent change in chief revenue officer. Stifel said Zscaler may have set a higher bar with the $10 billion target, but it left the event more positive on the company's market opportunity, which management pegged at $220 billion.
AMD Sees Demand Above Supply as Anthropic Commits $518 Billion to AI Buildout
Advanced Micro Devices CEO Lisa Su said demand continues to outpace supply and that the company plans to substantially increase supply in 2027, sending AMD shares higher in early trading Tuesday. Roughly 80% of Anthropic's planned $518 billion in cloud and compute spending over the next decade is non-cancelable or payable regardless of how much capacity it actually uses. Elon Musk confirmed over the weekend that SpaceX and Taiwan Semiconductor are in discussions about a potential collaboration in which the Taiwanese foundry may use Terafab, the vertically integrated semiconductor manufacturing initiative launched by Musk, Tesla and SpaceX, as an anchor client for a future Texas facility. Zscaler reaffirmed its Q1 and full-year 2027 guidance, with CEO Jay Chaudry warning that autonomous AI agents will become the primary cybersecurity risk vector in coming years. Wells Fargo maintained its overweight rating on Meta Platforms and raised its price target to $1,000, citing Muse as a driver of a larger long-term AI cycle.
Cybersecurity & Digital Trust › AI Security & Agent Guardrails ▲Supply
AMD · Demand · Positive AMD CEO says demand continues to outpace supply, with plans to substantially increase supply in 2027.
META · Capital · Positive Wells Fargo maintained overweight on Meta and raised its price target to $1,000, citing Muse as a driver of a larger long-term AI cycle.
SPCX · Demand · Positive SpaceX confirmed discussions with TSMC about a potential collaboration using Terafab as anchor client for a future Texas semiconductor facility.
0ZC.XETRA · Regulation · Neutral Zscaler reaffirmed guidance but CEO warned autonomous AI agents will become the primary cybersecurity risk vector.
2330.TW · Demand · Positive Named as the Taiwanese foundry in talks with SpaceX/Tesla to use Terafab as anchor client for a future Texas facility, implying potential new foundry demand.
5425.TWO · Demand · Positive Same TSMC-SpaceX/Terafab anchor-client discussions reported, a potential new manufacturing demand driver.
Cybersecurity ETF Hits Record High as AI Agent Risks Drive Spending
The First Trust Cybersecurity ETF (CIBR) reached an all-time high on Monday as the tech-heavy Nasdaq Composite (^IXIC) notched a fresh record, with the fund's main holdings CrowdStrike (CRWD), Palo Alto Networks (PANW), and Fortinet (FTNT) all sitting near all-time highs after surging 132%, 131% and 97%, respectively. Rubrix (RBRK), F5 (FFIV), and Cloudflare (NET) also sit near record highs after a strong rally this year. Alarm bells from leadership at Anthropic and OpenAI prompted a rally in cybersecurity stocks last month, and the surge in AI agent usage and the popularity of Meta's (META) Muse have also highlighted the need for the industry. "Agents going rogue is the biggest risk today," Jay Chaudhury, CEO of Zscaler, told Yahoo Finance's Brian Sozzi on Monday, adding that a hijacked or rogue agent on a corporate network is far more dangerous because it works at machine speed. Morgan Stanley analysts, who have Overweight recommendations on Palo Alto Networks, CrowdStrike, and Okta (OKTA), expect corporate spending on cybersecurity software to grow by 23% annually through 2028, potentially accelerating to 33% annually if major cyberattacks spur new government mandates.
CRWD · Demand · Positive CrowdStrike sits near all-time highs as AI agent risks and rising corporate cybersecurity spending drive demand for its software.
FTNT · Demand · Positive Fortinet is near all-time highs amid surging cybersecurity spending tied to AI agent risks.
PANW · Demand · Positive Palo Alto Networks is near all-time highs as AI agent risks and rising corporate cybersecurity spending drive demand.
NET · Demand · Positive Cloudflare sits near record highs after a strong rally as AI agent usage highlights cybersecurity needs.
RBRK · Demand · Positive Rubrik sits near record highs as AI agent risks and rising cybersecurity spending drive demand for its data security offerings.
0ZC.XETRA · Demand · Positive Zscaler CEO Jay Chaudhury's comments on rogue AI agents highlight the need for its security platform, supporting demand.
Zscaler, Constellation Rise Premarket; Nike Falls on Berenberg Downgrade
Zscaler shares gained 2.2% in premarket trading after the cybersecurity company reaffirmed its revenue and earnings guidance for fiscal 2027, maintaining its full-year revenue forecast of $3.91 billion to $3.94 billion and adjusted earnings per share guidance of $4.86 to $4.90. Nike shares fell more than 1% after Berenberg downgraded the sportswear maker to Sell from Hold and cut its price target to $27.50 from $49, arguing that the company has accepted a smaller place in sportswear. Constellation Energy stock climbed 3% after a major deal with Amazon, under which Amazon will purchase 690 megawatts of output from Constellation's Calvert Cliffs Clean Energy Center in Maryland under a 20-year contract supporting more than $3 billion in plant investment, and reports that Google is nearing a separate nuclear power supply agreement worth $1 billion or more. Vaxcyte stock fell 3.7% as investors weighed the dilutive implications of a $1 billion capital raise announced after Monday's close, consisting of $500 million in common stock and pre-funded warrants and $500 million in convertible senior notes due 2032. Freshworks stock climbed 3.9% after S&P Dow Jones Indices announced the company will be added to the S&P SmallCap 600 index effective before the market open on October 8, replacing BioLife Solutions.
CEG · Demand · Positive Amazon will purchase 690 MW from Constellation's Calvert Cliffs under a 20-year contract supporting over $3 billion in plant investment.
FRSH · Capital · Positive Freshworks will be added to the S&P SmallCap 600 index effective October 8.
NKE · Capital · Negative Berenberg downgraded Nike to Sell and cut its price target to $27.50 from $49.
PCVX · Capital · Negative Vaxcyte announced a $1 billion capital raise with dilutive implications for investors.
ZS · Capital · Positive Zscaler reaffirmed its fiscal 2027 revenue and EPS guidance.
Zscaler CEO Warns Against Trusting AI Agents, Plans Product Roadmap
Zscaler founder and CEO Jay Chaudhry warned that companies and individuals are placing too much trust in AI agents, saying on Yahoo Finance's Sozzi Unleashed that agents should be given only limited trust for certain applications and services. Chaudhry, whose company carries a $33.9 billion market cap, said frontier AI models can find security vulnerabilities in websites, firewalls, VPNs and load balancers, break in, and move freely across corporate networks. A new Deloitte survey found that about 80% of organizations currently lack mature governance capabilities for agentic AI, including clear boundaries on independent decisions, real-time monitoring of agent behavior, and audit trails of agent actions. Chaudhry said he plans to share a more detailed product roadmap to combat AI agent risk at an investor day on Tuesday, the company's first since 2021. He called agents going rogue the biggest risk today, noting they operate at machine speed with no breaks and can exfiltrate confidential data or bring systems down.
Cybersecurity & Digital Trust › Network Security & SASE ▲Technology
Cybersecurity & Digital Trust › AI Security & Agent Guardrails ▲Technology
Artificial Intelligence › Agentic AI & Autonomous Workflows ▼Technology
Cybersecurity & Digital Trust › Endpoint & Network Security ▲Technology
Cybersecurity & Digital Trust › Cloud & Workload Security Technology
Cybersecurity & Digital Trust › Identity & Access Management ▼Technology
0ZC.XETRA · Technology · Positive Same company as Zscaler Inc; CEO's AI-agent risk warnings and planned product roadmap highlight its security products.
ZS · Technology · Positive CEO warns of AI agent security risks and plans a product roadmap at investor day to combat them, positioning Zscaler's security offerings.
Zscaler Shares Gain 11.8% as Earnings Estimates Surge
Zscaler shares have returned +11.8% over the past month, outpacing the Zacks S&P 500 composite's +0.6% change, while the Zacks Security industry gained 14.6% over the same period. The cloud-based information security provider is expected to post earnings of $1.16 per share for the current quarter, a year-over-year change of +20.8%, and the Zacks Consensus Estimate has changed +678.7% over the last 30 days. For the current fiscal year, the consensus earnings estimate of $4.91 indicates a year-over-year change of +16.6%, and for the next fiscal year the consensus estimate of $5.54 indicates a change of +12.9%. Consensus sales estimates stand at $937.61 million for the current quarter, $3.93 billion for the current fiscal year and $4.55 billion for the next fiscal year, indicating year-over-year changes of +19%, +17.2% and +15.8%, respectively. Zscaler reported revenues of $898.18 million in the last reported quarter, a year-over-year change of +24.9%, with EPS of $1.19 versus $0.89 a year ago, beating the Zacks Consensus Estimate of $877.14 million by +2.4% on revenue and by +9.17% on EPS. Zscaler is rated Zacks Rank #3 (Hold) and is graded F on the Zacks Value Style Score, indicating it trades at a premium to its peers.
0ZC.XETRA · Capital · Positive Zscaler's consensus earnings estimate surged +678.7% over 30 days and it beat last quarter's revenue/EPS estimates, driving the stock's 11.8% gain.
ZS · Capital · Positive Zscaler's consensus earnings estimate surged +678.7% over 30 days and it beat last quarter's revenue/EPS estimates, driving the stock's 11.8% gain.
Zscaler ThreatLabz Report Warns AI-Driven Ransomware Is Reshaping Cyber Threats
Zscaler released its ThreatLabz 2026 Ransomware Report on 1 October 2026, detailing new attack patterns including large-scale AI-driven ransomware operations that automate intrusion, data theft, and victim targeting. Researchers reported a rise in executive-focused data theft and misuse of enterprise tools such as Microsoft Teams to gain access. The report reinforces Zscaler's narrative that AI-driven threats are expanding and that security budgets are shifting toward Zero Trust and data protection, though it does not address whether the company can convert that awareness into larger multi-year contracts and improved net retention without higher sales and operating costs. Investors will be watching how management frames AI ransomware trends at the October 6, 2026 Investor Day and whether disclosures around Z-Flex, Security for AI, and Agentic SecOps show measurable traction in annual recurring revenue and product adoption within Global 2000 accounts.
Cybersecurity & Digital Trust › Network Security & SASE ▲Demand
Cybersecurity & Digital Trust › Endpoint & Network Security ▲Demand
Cybersecurity & Digital Trust › Cloud & Workload Security Demand
0ZC.XETRA · Demand · Positive Zscaler's ThreatLabz report reinforces its narrative that AI-driven threats are expanding and security budgets are shifting toward Zero Trust and data protection.
ZS · Demand · Positive Zscaler's ThreatLabz report reinforces its narrative that AI-driven threats are expanding and security budgets are shifting toward Zero Trust and data protection.
Cloudflare Sees AI Agent Security Demand Lifting Zero Trust and SASE Growth
Cloudflare said growing enterprise interest in securing artificial intelligence agents is creating a new opportunity for its Zero Trust and SASE security business. On the second-quarter 2026 earnings call, management said the biggest reason large companies are reaching out is that they know they need to adopt AI but want to do so securely, and the company believes its agents-first security model can help it take share from traditional Zero Trust vendors that focus mainly on human users. In one example, a large U.K. government agency that was evaluating a first-generation Zero Trust provider canceled its existing request for proposal and is now reevaluating the project with an agents-first approach after discussing its AI agent plans with Cloudflare. Management said its SASE and Zero Trust platforms have gained share significantly over the past six months, helped by its developer platform and its focus on AI, while more than 50% of traffic on its network was nonhuman in the second quarter and more than 80% of major AI companies are already Cloudflare customers. Competitors are moving in the same direction: Zscaler ended fiscal 2026 with 950-plus Zero Trust Everywhere customers, up from more than 350 a year earlier, and Palo Alto Networks said Prisma AIRS crossed $100 million in ARR within four quarters of general availability with more than 800 customers by the end of fiscal 2026, while agentic traffic on its SASE platform rose ninefold over the past nine months and SASE bookings grew 40% in fiscal 2026. Cloudflare shares have jumped 77% year to date, and the Zacks Consensus Estimate for its 2026 earnings stands at $1.26 per share, unchanged over the past 30 days and implying a 35.5% increase from the previous year.
Cybersecurity & Digital Trust › Network Security & SASE ▲Demand
Cybersecurity & Digital Trust › AI Security & Agent Guardrails ▲Demand
Cybersecurity & Digital Trust › Workforce & Customer IAM (SSO/MFA) ▲Demand
Artificial Intelligence › Agentic AI & Autonomous Workflows ▲Demand
NET · Demand · Positive Cloudflare says AI-agent security interest is driving enterprise adoption and share gains in its Zero Trust and SASE business, with a UK agency re-evaluating its RFP around an agents-first approach.
0ZC.XETRA · Competition · Neutral Zscaler is mentioned only as a competitor with 950-plus Zero Trust Everywhere customers, not as the subject of the news.
PANW · Competition · Neutral Palo Alto is cited as a competitor moving in the same agentic-security direction, with Prisma AIRS ARR over $100M and SASE bookings up 40%, but the article does not state a direct impact on it.
ZS · Competition · Neutral Zscaler is mentioned only as a competitor with 950-plus Zero Trust Everywhere customers, not as the subject of the news.
Zscaler Promotes Ross Tackett to Chief Revenue Officer
Zscaler has promoted Ross Tackett to Chief Revenue Officer, succeeding Mike Rich. Mike Rich will remain with the company as a strategic advisor to support the leadership transition in Zscaler's global sales organization. Tackett brings decades of enterprise sales leadership experience from major technology companies to the CRO role. The change puts Tackett in charge of global sales and partnerships as Zscaler pushes for larger multi-year deals and deeper wallet share, including newer AI security and Agentic SOC offerings sold in competition with Palo Alto Networks and CrowdStrike. The company's investment story rests on whether its AI-first, zero-trust security platform and heavy go-to-market spending can translate into durable, efficient expansion, with the article pointing to a $197 fair value for Zscaler.
Cybersecurity & Digital Trust › Network Security & SASE Talent
0ZC.XETRA · Capital · Neutral Promotion of Ross Tackett to CRO is a leadership change tied to the investment story and $197 fair value; no clear product-demand or financial event.
ZS · Capital · Neutral Promotion of Ross Tackett to CRO is a leadership change tied to the investment story and $197 fair value; no clear product-demand or financial event.
Akamai Technologies shares jumped 23% after the company announced a seven-year, $11.6B agreement with Anthropic to provide cloud infrastructure and software supporting CPU workload growth at scale, a deal that could reach $20B if certain conditions are met. As part of the agreement, Akamai granted Anthropic warrants representing about 5% of its common stock, with 2% expected to vest initially and the remaining 3% tied to an additional $9B in cloud service purchases over the seven-year term. Fathom Holdings rose 23% and Neighborhood Intelligence gained 4% after the companies agreed to explore an alternative transaction replacing their previously announced merger agreement, under which NXH would contribute its roughly 38.8% direct and indirect stake in tZERO Group, Medici-related fund assets, and its investment in GrainChain to Fathom, with the contributed digital assets valued at no less than $130M, in return for newly issued Fathom shares and an expected controlling interest in Fathom. Select Water Solutions climbed 6% after agreeing to acquire private water midstream company Pilot Water Solutions for $700M in cash and stock, plus up to $15M in contingent consideration, comprising $600M in cash and $100M in Class A shares, with debt financing commitments from JPMorgan Chase and Bank of America and an expected close in Q4 2026. Scholastic plunged 12% after reporting wider-than-expected FQ1 losses and a 4% Y/Y revenue decline driven by soft educational spending, though it reaffirmed its full-year 2027 outlook for revenue growth of 2% to 4%, adjusted EBITDA of $135M to $145M, and free cash flow of $35M to $40M. Zscaler fell 4% after appointing Ross Tackett as Chief Revenue Officer effective October 1, 2026, succeeding Mike Rich, who is stepping down for personal reasons but will remain as a strategic advisor through December 31, 2026.
AKAM · Demand · Positive Akamai announced a seven-year $11.6B cloud infrastructure deal with Anthropic, potentially reaching $20B.
FTHM · Capital · Positive Fathom agreed to explore an alternative transaction replacing its prior merger, with NXH contributing assets valued at no less than $130M for newly issued Fathom shares and a controlling interest.
SCHL · Capital · Negative Scholastic reported wider-than-expected FQ1 losses and a 4% Y/Y revenue decline on soft educational spending.
WTTR · Capital · Positive Select Water Solutions agreed to acquire Pilot Water Solutions for $700M in cash and stock.
ZS · Capital · Negative Zscaler fell after appointing a new Chief Revenue Officer as its current CRO steps down.
NXH · Capital · Positive Neighborhood Intelligence agreed to explore an alternative transaction replacing its prior merger with Fathom, contributing its ~38.8% tZERO stake and other digital assets valued at no less than $130M for newly issued Fathom shares and an expected controlling interest in Fathom.
Zscaler Launches Agentic SOC AI Security Platform With Anthropic and OpenAI
Zscaler launched its Agentic SOC, an AI-first security operations platform that combines proprietary telemetry, a large decoy mesh network, and integrated zero trust controls with third-party tools to detect and contain threats at machine speed. The platform uses AI agents co-developed with Anthropic and OpenAI, trained on a decade of frontline SOC experience and powered by more than 750 billion daily zero trust transactions to automate complex threat investigation and response. The launch follows the June expansion of Zscaler's Zero Trust SASE with the ZAgent Framework and new browser, endpoint, and cloud controls, both moves deepening Zscaler's role as an integrated security and AI operations platform. Zscaler's narrative projects $5.1 billion revenue and $132.0 million earnings by 2029, yielding a $196.95 fair value, a 6% downside to its current price, while some of the lowest estimate analysts assume revenue of about US$5.2 billion and earnings near US$50 million by 2029 and worry that acquisitions and aggressive AI investment around Agentic SOC could keep margins subdued even if topline keeps growing.
Cybersecurity & Digital Trust › Security Operations (SIEM/SOAR/XDR/MDR) Technology
Artificial Intelligence › Agentic AI & Autonomous Workflows ▲Technology
Cybersecurity & Digital Trust › Network Security & SASE Competition
0ZC.XETRA · Technology · Positive Same Zscaler Agentic SOC launch, the AI-first security operations platform, applies to this Zscaler listing.
ZS · Technology · Positive Zscaler launched its Agentic SOC AI-first security operations platform co-developed with Anthropic and OpenAI, deepening its integrated security and AI operations offering.
Anthropic · Technology · Positive Anthropic co-developed the AI agents powering Zscaler's new Agentic SOC platform.
OpenAI · Technology · Positive OpenAI co-developed the AI agents powering Zscaler's new Agentic SOC platform.
Zscaler AI Bookings Jump Over 50% Sequentially in Fiscal Q4
Zscaler's Security for AI bookings rose more than 50% sequentially in the fourth quarter of fiscal 2026, with AI Protect bookings crossing $100 million over the trailing 12 months. About 70% of Security for AI deals in the quarter also included Data Security, and the company introduced Zero Trust Exchange for Agents and Endpoint AI Security, which are expected to scale in the second half of fiscal 2027. Zscaler reported fourth-quarter revenues of $898.2 million, up 25% year over year, while annual recurring revenues rose 25% to $3.77 billion, though fiscal 2027 revenue guidance implies growth of about 17%. Rivals are expanding too: Palo Alto Networks' Prisma AIRS reached about $120 million in ARR within roughly a year of general availability and exceeded 800 customers, while CrowdStrike's AIDR ending ARR nearly tripled from the first quarter. ZS shares have plunged 12.3% year to date, and the stock carries a Zacks Rank #3 (Hold).
Palo Alto Networks SASE Bookings Jump 40% as Displacements Hit $400 Million
Palo Alto Networks said its SASE bookings grew 40% in fiscal 2026, with the company displacing legacy vendors in nearly 100 customer accounts representing more than $400 million in total contract value, roughly double the prior year's displacement volume. Management said PANW is currently the No. 2 player in SASE and aims to become the market leader over the next five to seven years, helped by integrating SASE with its firewall and SD-WAN products so existing customers can standardize on one vendor. In the fourth quarter of fiscal 2026, a global telecom leader signed a $126 million agreement to expand its next-generation firewall footprint while replacing legacy proxy providers with Prisma Access for SASE, and agentic traffic on the company's SASE platform has increased 9x over the past nine months. Rival Fortinet said its SASE Firewall business grew 34% in the second quarter of 2026 to more than $2 billion, while Unified SASE billings rose 35%, and Zscaler reported ARR up 25% year over year in the fourth quarter of fiscal 2026. Palo Alto Networks shares have jumped 104.1% year to date versus a 92.6% gain for the Zacks Security industry, and the stock trades at a forward price-to-sales ratio of 21.31X against an industry average of 19.13X.
Cybersecurity & Digital Trust › Network Security & SASE ▲Demand
Cybersecurity & Digital Trust › Endpoint & Network Security Competition
PANW · Demand · Positive Palo Alto Networks' SASE bookings jumped 40% in fiscal 2026, displacing legacy vendors in nearly 100 accounts worth over $400 million in total contract value.
FTNT · Demand · Positive Fortinet's SASE Firewall business grew 34% in Q2 2026 to over $2 billion with Unified SASE billings up 35%, showing strong demand for its SASE products.
0ZC.XETRA · Demand · Positive Zscaler reported ARR up 25% year over year in Q4 fiscal 2026, indicating continued demand for its SASE offerings.
ZS · Demand · Positive Zscaler reported ARR up 25% year over year in Q4 fiscal 2026, indicating continued demand for its SASE offerings.
Zscaler reported fourth-quarter revenue up 25% year over year to $898.2 million, with ARR rising 25% to $3.77 billion, though organic ARR excluding Red Canary's $141 million contribution grew 20% to $3.63 billion. FBN Securities reiterated an Outperform rating on September 4 and raised its price target to $190 from $175, citing improving underlying momentum. Non-GAAP operating margin hit a record 24% in the quarter, while GAAP net loss per diluted share narrowed to $0.02 from $0.11 a year earlier. For the first quarter of fiscal 2027, Zscaler guided revenue to $935 million to $939 million, up 19% year over year, with a non-GAAP gross margin of about 80%. However, the company's fiscal 2027 ARR guidance of $4.396 billion to $4.426 billion implies growth of only 16.6% to 17.4%, raising concerns that Zscaler could shift from a 25% growth cybersecurity company to a high-teens grower and face multiple compression amid competition from Palo Alto Networks and CrowdStrike.
Retail traders chased cyber options but skipped the stocks, Vanda says
Retail investors piled into cybersecurity options during the sector's recent rally but stayed net sellers of some underlying shares, according to Vanda Analytics. Retail out-of-the-money call turnover across CrowdStrike, Palo Alto Networks and Zscaler jumped into the 98th percentile of its history over the past five sessions, yet retail investors were net sellers of $6.4M of Palo Alto Networks and $3.5M of Zscaler in the previous session. Institutional positioning was also light ahead of the move, with Vanda's institutional call-put ratio score for its cybersecurity basket at -0.27 as of Sept. 14, below its median since 2017 and well below the +0.84 recorded in January. The positioning came before the Global X Cybersecurity ETF recorded its biggest one-day gain on record, Vanda said. Viraj Patel, chief innovation officer and global market strategist at Vanda Analytics, said retail investors participated in the rally mainly through short-dated options rather than by rebuilding outright positions in the underlying stocks, leaving potential room for retail cash buying to increase if the rally extends.
0ZC.XETRA · · Neutral Same Zscaler entity referenced via its German listing; retail net selling of shares amid options-driven rally, no company-specific driver.
PANW · · Neutral Retail investors were net sellers of $6.4M of Palo Alto shares while chasing sector options; no company-specific driver.
ZS · · Neutral Retail investors were net sellers of $3.5M of Zscaler shares while chasing sector options; no company-specific driver.
CRWD · · Neutral Mentioned only as part of the cybersecurity options rally; retail call turnover spiked but no company-specific development.
CrowdStrike, Zscaler Jump 12% as AI Safety Warnings Spark Security Bid
Cybersecurity pure-plays surged Monday after weekend AI safety warnings from Anthropic CEO Dario Amodei and OpenAI CEO Sam Altman drove a narrow sector bid. CrowdStrike rose 12% to $232.08, Zscaler rose 12% to $183.97, and Palo Alto Networks jumped 11% to $366.40 in midday trading, while Okta joined the move as the group's identity-security peer. The First Trust NASDAQ Cybersecurity ETF rose just 4% and the SPDR S&P 500 ETF Trust fell 0.7%, leaving the wider networking and infrastructure membership of the sector fund largely out of the move. Amodei published a 3,800-word essay on Saturday calling on frontier AI companies to slow the pace at which they improve model capabilities, and Altman said he agreed, warning early Monday about losing control of the future to AI. CrowdStrike CEO George Kurtz responded over the weekend, arguing frontier labs will keep advancing regardless and that the cybersecurity industry's job is to make that development safer, after the company's Fal.Con conference introduced Falcon Guardian, SafeMind and an Agentic Identity Provider, with RBC Capital, Raymond James and Wedbush each reiterating positive ratings and raising price targets. CrowdStrike is up 98% year to date and Palo Alto is up 99%, while Zscaler is down 18% year to date; CrowdStrike's next catalyst is its Q3 FY27 report, with guidance of $1.523 billion to $1.529 billion in revenue and non-GAAP diluted EPS of $0.31, after Q2 FY27 total revenue grew 25.8% year over year to $1.47 billion and record net new ARR of $332.8 million.
CRWD · Demand · Positive CrowdStrike jumped 12% as AI safety warnings drove a sector bid, with its CEO positioning cybersecurity as the safeguard for frontier AI development.
CRWD · Capital · Positive RBC Capital, Raymond James and Wedbush each reiterated positive ratings and raised price targets on CrowdStrike.
0ZC.XETRA · Demand · Positive Zscaler rose 12% amid the narrow cybersecurity sector bid driven by AI safety warnings.
PANW · Demand · Positive Palo Alto Networks jumped 11% as part of the cybersecurity sector bid sparked by AI safety warnings.
ZS · Demand · Positive Zscaler rose 12% amid the narrow cybersecurity sector bid driven by AI safety warnings.
Zscaler CEO Cites AI Security Surge and Zero-Trust Momentum at Citi Conference
Zscaler CEO and Founder Jay Chaudhry said at Citi's TMT Conference that the company entered fiscal 2027 with an expanded product portfolio, improving sales momentum and growing customer interest in AI security and zero-trust architecture. Chaudhry said Zscaler expanded its AI-security lineup from one product a year ago, GenAI Security, to six integrated products, and that security-for-AI bookings exceeded $100 million over the 12 months disclosed after the third quarter, with fourth-quarter bookings in the category up 50% sequentially. Net-new annual recurring revenue growth rose from 7% in fiscal 2025 to 10% in the first half of fiscal 2026 and 17% in the fourth quarter, while customers using Zero Trust Everywhere increased from 300 a year earlier to 950 and the company completed a record number of $1 million deals. Zscaler launched Agentic SecOps at the conference, supported by its Red Canary acquisition, and introduced Z Flex, a flexible purchasing structure whose participating customers generated 30% higher upsell than non-participants in its first year. Chaudhry said AI security and Zero Trust Everywhere are the areas most likely to provide upside in fiscal 2027, and that he is watching adoption of the company's Agentic Exchange, which is in limited availability.
Zscaler launches Agentic SOC to contain AI-driven threats
Zscaler has announced the launch of Zscaler Agentic SOC, a new security operations solution designed to detect, investigate, and respond to AI-driven threats at machine speed. The platform combines Zscaler's zero trust telemetry, which processes 750 billion daily transactions, with specialized AI agents trained on over a decade of frontline security experience, and integrates with third-party tools. Zscaler has partnered with Anthropic and OpenAI to incorporate frontier AI models, enhancing the reasoning and accuracy of its agents. The solution is available globally today, aiming to reduce alert noise and automate threat containment for security teams.
Zscaler Reports Revenue and ARR Growth, Plans Workforce Reduction
Zscaler reported fiscal fourth-quarter GAAP revenue of $898.2 million, up 25%, and company-defined annual recurring revenue (ARR) increased 25% to $3.771 billion, but the company also announced a restructuring plan to cut about 3% of its workforce. Excluding the Red Canary acquisition, ARR was $3.630 billion, up 20%, with net new ARR growing 17%. The restructuring is expected to incur $30 million to $33 million in charges, primarily for severance and benefits. Non-GAAP operating margin improved to 24% from 22%, while operating cash flow rose to $279.3 million from $250.6 million. For fiscal 2026, non-GAAP free cash flow increased to $779.1 million from $726.7 million, though the margin declined to 23% from 27%. Fiscal 2027 guidance projects revenue growth of 16.6% to 17.5% and ARR growth of 16.6% to 17.4%, with a free-cash-flow margin of 23.0% to 23.5%. Quarterly free cash flow fell sharply to $60.8 million from $171.9 million, and the margin dropped to 7% from 24%, as capital expenditures rose to $218.5 million from $78.7 million. The company recorded a GAAP operating loss of $15.5 million, with stock-based compensation totaling $215.2 million. Hedge fund holdings increased to 52 funds from 46 in the prior quarter.
Zscaler Beats Q2 Estimates, AI Security Drives Growth
Zscaler reported fiscal second-quarter revenue of $898.2 million, up 24.9% year over year and beating analyst estimates of $877.2 million, while non-GAAP earnings per share of $1.19 surpassed consensus by 9.2%. The company guided third-quarter revenue to $937 million at the midpoint, above expectations, and raised its full-year adjusted EPS guidance to $4.88, beating estimates by 6.1%. Management attributed the strong performance to accelerating adoption of its Zero Trust platform and a surge in AI security bookings, which grew over 50% sequentially. However, shares fell after the announcement, reflecting concerns about sales leadership transitions and integration costs. Zscaler also announced a workforce restructuring affecting about 3% of employees to reallocate resources toward AI initiatives.
Jim Cramer Notes Many Zscaler Shorts After Strong Q4 Results
Jim Cramer highlighted the large number of short sellers in Zscaler Inc. after the cybersecurity firm reported fiscal fourth-quarter results that beat expectations. Revenue grew 25% annually to $898 million, and non-GAAP earnings per share rose 33% to $1.19, both surpassing analyst estimates of $807 million and $1.09. The company's annual recurring revenue jumped 35% to $3.77 billion, with net new ARR of $246 million, and excluding the Red Canary acquisition, net new ARR growth accelerated to 17% from 7% a year earlier. Zscaler also exited the quarter with over 785 customers each generating more than $1 million in ARR and a 50% penetration into the Fortune 500. However, the company's fiscal 2027 revenue guidance of $3.91 billion to $3.94 billion implies a growth slowdown to between 16.6% and 17.5%, compared with 25% growth in fiscal 2026, while R&D expenses rose 34% to $903 million. Cramer noted that 5.9% of Zscaler's float is short, compared with less than 3% for peers Palo Alto Networks and CrowdStrike, and he remains enthusiastic about the cybersecurity sector.
Zscaler CEO says AI drives demand, defends conservative 2027 outlook
Zscaler reported quarterly earnings with revenue up 25% and offered a conservative 2027 outlook, projecting roughly 17% revenue growth versus about 25% in 2026. CEO Jay Chaudhry told Market Domination that AI is a big tailwind, driving demand not only for AI security but for securing everything via zero trust, as agentic AI creates new vulnerabilities. He cited record million-dollar-plus deals and crossing 50% of Fortune 500 companies as customers. Chaudhry expressed bullishness on FY27, saying the company's full AI solutions combined with zero trust architecture will make the year strong.
Midday movers: Sandisk, Tesla, Lululemon, Quanex, AMC & more
In midday trading, several stocks made notable moves. Guidewire Software plummeted 21% after issuing weaker-than-expected current-quarter revenue guidance of $372 million to $378 million, below the LSEG consensus of $387 million. Tesla dropped 6% following a National Highway Traffic Safety Administration investigation into whether its Cybercab meets federal safety standards, after the company launched robotaxis in Austin. Sandisk and KLA rallied more than 8% and 7% respectively, as the semiconductor sector gained ahead of the long weekend, with the VanEck Semiconductor ETF (SMH) up over 2% and the Roundhill Memory ETF (DRAM) up 5%. Quanex Building Products surged 19% after beating third-quarter estimates with adjusted earnings of 79 cents per share on revenue of $501.8 million, versus the FactSet consensus of 66 cents and $497.5 million. AMC Entertainment rose 6.5% after CEO Adam Aron criticized Robinhood's stock tokens as "contemptible, outrageous, disgusting," while Robinhood slipped nearly 1%. Credit monitoring firms Equifax, TransUnion, and Fair Isaac fell after Federal Housing Finance Agency Director Bill Pulte said they have been "overcharging Americans for too long," with Fair Isaac down over 15%, Equifax down 6.8%, and TransUnion down over 7%. Smith & Wesson gained 6% on an earnings beat, reporting 6 cents per share versus an expected loss of 6 cents, on revenue of $112.6 million versus the $98.7 million consensus. Lululemon Athletica tumbled 17% after forecasting current-quarter earnings of 93 to 98 cents per share on revenue of $2.29 billion to $2.32 billion, below analyst expectations of $2.40 per share and $2.53 billion. Zscaler slipped 5% despite beating earnings estimates, while Adobe fell 6% after announcing Anil Chakravarthy as its next CEO. Asana dropped 14% on weak guidance, Samsara advanced 4% on strong full-year outlook, UiPath lost 16% despite in-line guidance, and Oxford Industries sank 17% after cutting its full-year guidance.
Zscaler's Q4 Earnings Could Soar on AI Cybersecurity Demand
Zscaler reports its fiscal fourth-quarter results after the market closes on September 3, and investors are watching whether the cybersecurity firm can beat modest expectations amid rising AI-driven demand. Management's guidance calls for roughly 22% year-over-year revenue growth, but the company has a history of outperforming its own forecasts, having reported 25% growth in both revenue and ARR last quarter. The key catalyst could be a significant raise to its fiscal 2027 outlook, especially after peers CrowdStrike and Palo Alto Networks posted strong results tied to AI cybersecurity spending. Zscaler's remaining performance obligation, a measure of its revenue backlog, grew 30% to $6.5 billion in the fiscal third quarter, suggesting potential acceleration. If the company signals traction in securing agentic AI workflows, its stock could react positively, though simply beating estimates may not suffice without strong forward guidance.
CrowdStrike Rallies 4% on Google Cloud Deal and AI Agents
CrowdStrike Holdings shares jumped 4% to $227.84 in Monday trading after the company opened its Fal.Con 2026 conference with a series of AI-focused announcements, including making its Falcon platform available on Google Cloud and launching Falcon IQ, a new agent stack powered by NVIDIA's open Nemotron models. The company also expanded its Project QuiltWorks data-sharing coalition to ingest real-time data from twelve outside sources, including rival Zscaler, positioning CrowdStrike as the aggregation layer for AI-era cybersecurity. CrowdStrike's fiscal second-quarter 2027 revenue reached $1.47 billion, up 26% year over year, with Falcon Flex annual recurring revenue topping $2.29 billion, up 101%, and management raised its full-year growth outlook by 630 basis points. The stock is up 86% year to date, trading near the analyst target price of $227.58.
Enterprise Software Stocks Surge on AI-Driven Earnings
Enterprise software and SaaS stocks surged in the afternoon session after quarterly earnings and upbeat commentary signaled that artificial intelligence is driving growth rather than threatening legacy business models. ServiceNow jumped 9.8%, Zscaler 9.9%, SentinelOne 11.8%, Asana 8.1%, and Elastic 7.8%, following stronger-than-expected results from major tech firms. Salesforce's AI-powered Agentforce reached $1.5 billion in annual recurring revenue, and Slackbot surpassed 1 million active users in five months. CrowdStrike CEO George Kurtz attributed momentum to AI expanding the attack surface, while Okta said AI-focused offerings drove about 30% of new bookings and increased contract values by roughly 40%. The rally, highlighted by a 20% surge in Salesforce, reflects confidence that established vendors can capture value from AI deployment.
JFrog Launches Traffic Controller with Zscaler, Cloudflare, Netskope
JFrog Ltd. has introduced the JFrog Traffic Controller, a new solution integrated with Zscaler, Cloudflare, and Netskope to enforce software supply chain security at the network edge, ensuring all package downloads flow through JFrog Artifactory as the single source of truth. The company's 2026 State of the Union report revealed a 451% surge in malicious packages year over year, reaching over 171,000 unique instances, yet only 40% of organizations have detection capabilities. The Traffic Controller reroutes outbound package requests through JFrog Curation, which inspects each package against security, license, and quality policies, blocking malicious ones and serving safe approved versions automatically. Available immediately, the solution supports Zscaler Internet Access, Cloudflare Gateway, and Netskope One SSE, with additional SASE partners expected to follow. JFrog CEO Shlomi Ben Haim emphasized that the goal is to provide a universal control point without disrupting developer workflows, and the company will showcase the solution at swampUP 2026 in New York from September 1-3.
Cloudflare's Workers Platform Drives Growth with 7.4 Million Developers
Cloudflare's Workers developer platform is becoming a key growth engine, with the company reporting over 7.4 million developers on the platform by the end of the second quarter of 2026, adding nearly two million in that quarter alone—more than the 1.5 million added during all of 2025. The platform is gaining traction among enterprise customers, with more including Workers in pool-of-funds contracts; for instance, an APAC technology company signed a $4 million Workers contract after an $8.7 million Application Services deal, and another signed a $6 million contract for AI agent capabilities. Cloudflare says Workers has moved beyond adoption to meaningfully contribute to revenues, driving consumption alongside security and networking products. The rise of AI agents could further boost the platform, with Zacks Consensus Estimates projecting 32.3% and 28.5% year-over-year revenue growth for 2026 and 2027, respectively. However, Cloudflare faces tough competition from Palo Alto Networks, whose SASE segment grew 40% year over year in fiscal Q3 2026, and Zscaler, which ended its fiscal Q3 with over 700 Zero Trust Everywhere enterprises, up from 550. Cloudflare's stock is up 40.7% year-to-date, trading at a forward price-to-sales ratio of 28.87 versus the industry's 3.91, and carries a Zacks Rank #3 (Hold).
Palo Alto Networks Network Security Growth Accelerates on AI Demand
Palo Alto Networks reported its Network Security business had its strongest quarter in several years during the third quarter of fiscal 2026, driven by rising enterprise spending on AI and cloud infrastructure. Next-generation firewall bookings grew nearly 40% year over year, supported by Gen 5 appliances and AI data center buildouts, while software firewall ARR increased 25% year over year. Network Security accounts for about 70% of total revenues, and hardware revenues, about 10% of total, had their best quarter in a decade with a record backlog. Management expects data center expansion and higher traffic volumes to remain key growth drivers for the next several quarters and potentially several years. Competitors CrowdStrike and Zscaler are also benefiting from AI-related cybersecurity demand, with CrowdStrike's AIDR solution seeing ending ARR grow more than 250% sequentially and Zscaler surpassing 700 Zero Trust Everywhere enterprises.
Cybersecurity & Digital Trust › Network Security & SASE ▲Demand
Cybersecurity & Digital Trust › Endpoint & Network Security ▲Demand
Cybersecurity & Digital Trust › Cloud & Workload Security ▲Demand
Artificial Intelligence › AI Applications & Copilots ▲Demand
PANW · Demand · Positive Network Security business had strongest quarter in years, driven by rising enterprise spending on AI and cloud infrastructure, with next-gen firewall bookings up nearly 40%.
0ZC.XETRA · Demand · Positive Zscaler surpassing 700 Zero Trust Everywhere enterprises, benefiting from AI-related cybersecurity demand.
CRWD · Demand · Positive CrowdStrike's AIDR solution seeing ending ARR grow more than 250% sequentially, benefiting from AI-related cybersecurity demand.
ZS · Demand · Positive Zscaler surpassing 700 Zero Trust Everywhere enterprises, benefiting from AI-related cybersecurity demand.
Zscaler and Carahsoft Expand Partnership to Deliver Zero Trust Security to SMB and Mid-Market Customers
Zscaler and Carahsoft Technology announced an expanded partnership to bring the Zscaler Zero Trust Exchange platform to U.S. small and medium-sized businesses and mid-market organizations. The initiative introduces standardized SMB-ready customer offers, simplified consumption with predictable pricing, partner enablement at scale, and go-to-market partner velocity. Zscaler's SVP of Global Partner Ecosystem Anthony Torsiello said the move makes the platform more accessible to a large underserved segment, while Carahsoft President Craig P. Abod highlighted easier procurement, deployment, and management through Carahsoft's reseller ecosystem.
Zscaler Raises CapEx Outlook as AI Security Demand Grows
Zscaler is preparing for higher capital expenditures as rapid adoption of artificial intelligence creates new cybersecurity demands, with management indicating fiscal 2026 CapEx could reach the high-single-digit percentage range of revenues, up from an earlier mid-single-digit forecast, and could increase by another 200 basis points as a percentage of revenues in fiscal 2027. The company has been moving some fiscal 2027 equipment purchases into the fourth quarter of fiscal 2026 to secure current prices amid higher costs for memory, storage and processors. Third-quarter fiscal 2026 revenues increased 25% year over year to $850.4 million, annual recurring revenues rose 25% to $3.53 billion, and its AI Protect solution generated more than $100 million in bookings over the past 12 months. Zscaler generated free cash flow of $136 million in the third quarter and $718.4 million in the first nine months of fiscal 2026, but management lowered its fiscal 2026 free cash flow margin guidance range to 22.8%-23.3% from the earlier forecast of 26.5%-27%. The Zacks Consensus Estimate for fiscal 2026 and 2027 indicates year-over-year revenue growth of 24.6% and 16.9%, respectively, while ZS shares have plunged 16.7% year to date and trade at a forward price-to-sales ratio of 7.77, significantly below the industry's average of 18.85.
CloudSEK Identifies Over 2,500 Organisations Potentially Impacted by AI Supply Chain Exposure
CloudSEK has identified more than 2,500 organisations that may have been potentially affected by a major AI supply chain incident involving LiteLLM in March 2026, with approximately 434,000 automated software-development pipelines linked to the exposure. The potentially affected organisations span critical industries including technology, cybersecurity, banking and financial services, telecommunications, manufacturing, consulting, logistics, and enterprise software, with high-confidence matches associated with major global organisations including NVIDIA, Samsung Electronics, Cisco Systems, Siemens, S&P Global, ServiceNow, Deloitte, Vodafone, X Corp, Zscaler, FedEx, Volkswagen, Thales and London Stock Exchange Group. The incident occurred after cybercriminal group Team PCP compromised LiteLLM, and malicious versions were reportedly available through the Python software repository PyPI for only around 40 minutes, yet CloudSEK's analysis identified approximately 434,000 CI/CD pipelines potentially connected to the exposure. Potentially accessible information included cloud credentials, source-code access, server keys, software-development secrets, AI API keys and other credentials that could give attackers access to critical business systems, and CloudSEK stresses that appearing in the dataset does not automatically mean an organisation was successfully breached but should be investigated urgently. CloudSEK has released a free exposure-checking tool to help organisations determine whether credentials or infrastructure associated with them appear in the identified dataset.
Cybersecurity & Digital Trust › AI Security & Agent Guardrails ▼Supply
Artificial Intelligence › AI Tooling, Data & MLOps ▼Supply
LSEG.LSE · Supply · Negative London Stock Exchange Group is listed among potentially affected organizations, risking exposure of credentials and source code.
SIE.XETRA · Supply · Negative Siemens is named as potentially affected, with risk of credential and source-code exposure from the compromised LiteLLM.
VOD.LSE · Supply · Negative Vodafone is identified as potentially impacted by the AI supply chain incident, with possible exposure of credentials and secrets.
VOW.XETRA · Supply · Negative Volkswagen is listed among potentially impacted organizations, facing potential exposure of credentials and development secrets.
ZS · Supply · Negative Zscaler is named as potentially impacted by the LiteLLM supply chain compromise, with exposure of credentials and secrets.
005930.KO · Supply · Negative Samsung is listed as potentially impacted by the LiteLLM supply chain compromise, with exposure of credentials and source code.
Zscaler Named a Leader in Both 2026 Gartner Magic Quadrant for SASE Platforms and SSE
Zscaler has been recognized as a Leader in both the 2026 Gartner Magic Quadrant for SASE Platforms and the 2026 Gartner Magic Quadrant for Security Service Edge. This marks the fifth consecutive year Zscaler has been named a Leader in the SSE Magic Quadrant and its first year as a Leader in the SASE Platforms Magic Quadrant. The company believes these results underscore its accelerating market momentum and the proven capability of its Zero Trust SASE framework. Zscaler protects 40% of the Forbes Global 2000 and is introducing the ZAgent Framework to bring agentic AI to SASE management.
Zscaler, Shopify, and PTC Shares Jump as Falling Yields Boost Enterprise Software
Shares of Zscaler, Shopify, and PTC rose sharply in afternoon trading as a drop in Treasury yields and concerns over the artificial intelligence investment cycle improved market appetite for enterprise software. Zscaler gained 3.3%, Shopify added 2.8%, and PTC climbed 2.5%, benefiting from a broader rotation out of semiconductor stocks and into software names. The decline in interest rates provided a macro tailwind for long-duration Software-as-a-Service valuations, while portfolio managers reallocated capital away from chipmakers after the top 25 semiconductor and hardware companies reached a combined market capitalization of approximately $22 trillion. Zscaler remains down 31.4% year-to-date and trades 55% below its 52-week high of $336.27 from November 2025.
Zscaler and Schwarz Digits partner for sovereign cloud security platform in Europe
Zscaler has partnered with Schwarz Digits to launch a sovereign cloud-based cybersecurity platform for customers across Europe. The joint offering combines Zscaler's Zero Trust Exchange platform with Schwarz Digits' STACKIT cloud infrastructure hosted in Germany, delivering a sovereign Zero Trust Secure Access Service Edge platform designed to help organizations defend against AI-driven cyber threats while meeting Europe's digital sovereignty and regulatory requirements. Christian Müller, CEO of Schwarz Digits, said the partnership takes network security to a new level by evolving existing security architectures and focusing on high-performance identity verification, providing customers with stronger protection against cyberattacks.
0ZC.XETRA · Demand · Positive Zscaler partners with Schwarz Digits to launch a sovereign cloud security platform, expanding its customer reach in Europe.
ZS · Demand · Positive Zscaler partners with Schwarz Digits to launch a sovereign cloud security platform, expanding its customer reach in Europe.
Schwarz Digits · Demand · Positive Schwarz Digits partners with Zscaler to offer a sovereign cloud security platform, enhancing its cybersecurity portfolio.
Jim Cramer Names Palo Alto Networks and CrowdStrike as Top Cybersecurity Stocks for the AI Era
Jim Cramer told his followers that there will always be another DeepSeek and named Palo Alto Networks and CrowdStrike as the cybersecurity plays for a world where every enterprise is scrambling to secure frontier AI models and compromised agents. Palo Alto Networks shares are up 92.18% year-to-date, CrowdStrike is up 73.87% year-to-date, and Fortinet leads the group with a 102.47% year-to-date gain. Cramer also highlighted Zscaler, which is down 34.9% year-to-date despite nine straight EPS beats and an analyst target of $192.58, and Cloudflare, which is up 38.2% year-to-date as it pivots to an agentic AI-first company. The five stocks are positioned to benefit from enterprise budget shifts toward AI security infrastructure.
Cybersecurity & Digital Trust › AI Security & Agent Guardrails ▲Demand
Cybersecurity & Digital Trust › Endpoint & Network Security ▲Demand
Cybersecurity & Digital Trust › Cloud & Workload Security ▲Demand
Cybersecurity & Digital Trust › Security Operations (SIEM/SOAR/XDR/MDR) ▲Demand
CRWD · Demand · Positive Cramer names CrowdStrike as a top cybersecurity play for AI era, benefiting from enterprise budget shifts toward AI security.
PANW · Demand · Positive Cramer names Palo Alto Networks as a top cybersecurity stock for AI era, benefiting from enterprise AI security spending.
FTNT · Demand · Positive Fortinet leads cybersecurity group with 102.47% YTD gain, positioned to benefit from AI security infrastructure spending.
NET · Demand · Positive Cloudflare pivots to agentic AI-first company, benefiting from AI security demand.
ZS · Demand · Neutral Zscaler is down 34.9% YTD despite EPS beats and analyst target, but still positioned to benefit from AI security shift.
0ZC.XETRA · Demand · Neutral Mentioned as a cybersecurity stock that could benefit from AI security spending, but noted as down 34.9% YTD despite EPS beats, with no specific catalyst.
Zscaler shares jump after cyber threat warning puts security stocks back in focus
Shares of Zscaler moved sharply higher after U.S. and international security agencies issued a joint warning about Russian state-sponsored cyber threats against critical infrastructure. The cloud security stock has returned 9.5% over the past month and 15.6% over three months, though it remains down 35.7% year to date and has posted a one-year total shareholder return decline of 51.3%. A widely followed narrative on Simply Wall St pegs Zscaler's fair value at $192.58, implying the stock is 26.4% undervalued relative to its last close of $141.82, while its price-to-sales ratio of 7.2x sits above the U.S. software industry average of 3.5x but below peer levels around 10x and a fair ratio of 8.1x.
USA
