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Zscaler (ZS) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Zscaler
NasdaqGS•Technology•Software - Infrastructure
$255.15+17.39(0.07%)Pre-market
Market Cap
$38.49B
P/S
11.5x
P/B
14.8x

Zscaler, Inc. operates as a cloud security company worldwide. The company offers cyberthreat protection products, including Zero Trust SASE, a solution that securely connects workforces, AI agents, workloads, and IoT/OT devices to cloud apps and AI services; Zscaler Internet Access, which provides advanced threat protection, sandbox, and zero trust firewall; Zscaler Private Access solution that includes cyberthreat and data protection, application discovery, secure application access, application segmentation, application protection, and reduced attack surface; Zero Trust Browser, a solution that secures browser-based access to business applications for the extended workforce, including third parties and partners; Zscaler Digital Experience, a solution that monitors end-user experience and helps organizations identify and resolve performance issues across their digital environment; Zero Trust Branch; and Zero Trust Cloud solutions. It also provides Security for AI solution to secure AI adoption across the full AI ecosystem; data security services, including AI-powered data classification and contextual insights, data loss prevention, Saas security, and data security posture management solution. In addition, the company offers Agentic Security Operations solution that enables enterprises to reduce cyber risk by using AI-powered automation; exposure management platform; deception; managed detection and response; agentic security operations center; and threat hunting solutions. It serves automotive, airlines and transportation, conglomerates, consumer goods and retail, energy, financial services, healthcare, insurance, manufacturing, media and communications, public sector and education, technology, and telecommunications services industries. The company was formerly known as SafeChannel, Inc. and changed its name to Zscaler, Inc. in August 2008. Zscaler, Inc. was incorporated in 2007 and is headquartered in San Jose, California.

C

How this company scores

AverageMetricSide Score: 59/100

Strongest: Balance Sheet & Red Flags (17/25); weakest: Profitability (11/25).

Profitability11/25
Growth16/25
Balance Sheet & Red Flags17/25
Cash & Earnings Quality15/25
Strengths
Growing revenueLong cash runwayConsistent free cash flowImproving leverage

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/S · 11.5x5y range 6.8x – 62.9x
P/S 11.5x · near its 20-quarter median

Currently near its 20-quarter median.

P/B · 14.8x5y range 9.2x – 83.8x
P/B 14.8x · below its 20-quarter median

Currently below its 20-quarter median.

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

The company posted negative operating margins in recent quarters — core operations are unprofitable.

Earnings Quality

Red Flag

FCF consistently trails net income (avg -21.2x) — earnings may be inflated by non-cash items or aggressive accounting.

Price & Volume
Market Cap $38.49B

Metrics at a Glance

as of July 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$3.35B
7Q
Q. Revenue
$898.18M
7Q
TTM EBITDA
$120.89M
3Q
TTM Op. Income
$-133.27M
4%
Q. Op. Income
$-15.49M
2Q
TTM Net Income
$-63.18M
52%
Q. Net Income
$-3.37M
2Q
EPS
$-0.021
2Q
Shares Out.
$161.86M
7Q
$3.35B in TTM revenue grew 25.4% YoY, reaching $898.18M last quarter. TTM EBITDA of $120.89M and TTM operating income of $-133.27M show growth is flowing through to the bottom line. However, net income is negative at $63.18M — growth is not yet reaching the bottom line. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin
76.7%
1%
EBITDA Margin
14.8%
430%
Op. Margin
-1.7%
2Q
Net Margin
-0.4%
2Q
Op. margin of -1.7% is up 2.8% YoY — cost efficiency is improving. Net margin at -0.4% and gross margin of 76.7% show how much of each revenue dollar survives to profit. Across the last 8 quarters, operating margin has risen for 2 consecutive quarters — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
N/A
P/S Ratio
11.5x
32%
P/B Ratio
14.8x
41%
P/S of 11.5x and P/B of 14.8x. P/S is high, meaning growth expectations are priced in.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$7.87B
7Q
Cash
$928.35M
4Q
Long-Term Debt
$1.70B
2Q
Book Value
$2.60B
4Q
D/E Ratio
0.7
4Q
Debt/EBITDA
12.7
With $7.87B in assets and $1.70B in long-term debt, D/E is 0.7and book value is $2.60B — a conservative capital structure with a cushion to weather downturns. Across the last 8 quarters, debt/equity has fallen for 4 consecutive quarters — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow
$279.29M
11%
TTM Free Cash Flow
$852.35M
5%
FCF Margin
25.4%
3Q
FCF / Net Income
-13.5
31%
TTM FCF of $852.35M on $279.29M in operating cash flow. The FCF / Net Income ratio of -13.5x means the business consumes cash — it is not yet self-funding. Over the past year, free cash flow is up 5% — a weakening trend.

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Share Dilution

Red Flag

Shares outstanding increased 6.1% — significant dilution, likely from stock compensation or capital raises.