At a glance
Zscaler Inc is worth $42.42B. Revenue grew 25.4% to $3.35B in fiscal 2026, at a loss; over 5 years it has grown 37.9% a year. It pays no dividend. The stock returned −20.3% over the past year with dividends reinvested and −3.5% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 39.4% in the 2020 crash (S&P 500: 33.7%) and 57.7% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 1 month and 36 months after the lows.
The business in plain English
Zscaler provides cloud-based cybersecurity to businesses and government agencies, including many of the world's largest. Its core product, the Zero Trust Exchange, sits between a customer's staff, devices and AI agents and the apps and data they use. "Zero trust" means nothing is trusted by default: each connection must prove its identity and reaches only the specific app it is allowed to use. It offers an alternative to firewalls and virtual private networks (VPNs), which guard a network's edge.
Customers pay subscriptions, which Zscaler records as revenue over each contract's term. It relies partly on channel partners, outside firms that market and support its services. It has about 11,000 customers, including over 40% of the Forbes Global 2000 and over half of the Fortune 500. Revenue was $3.35 billion in the fiscal year ended July 31, 2026, up 25% from the year before. The service runs from over 200 data centers serving over 185 countries.
The platform has four parts: Zero Trust SASE (secure access service edge, cloud-delivered networking and security, including Zscaler Internet Access and Zscaler Private Access), Security for AI, Data Security, and Agentic Security Operations, which uses AI to help security and IT teams. The 10-K does not provide a clean revenue split by product, segment or region.
Price history
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ZS -20.3% over the year to Oct 27, 2026, total return with dividends reinvested.
Latest results
- In Q4 FY2026 (ended Jul 31, 2026), revenue was $898.2M, up 24.9% from a year earlier, and net income was $-3.4M.
- For fiscal 2026, revenue was $3.35B (+25.4% year over year; +37.9% a year from FY2021 to FY2026) with a -1.9% net margin.
Financial health check
| Revenue growth a year (FY2021–FY2026) | +37.9% good |
|---|---|
| Operating margin | -4% weak |
| Free cash flow margin | 25.4% good |
| Return on equity (FY2026) | -2.4% weak |
| Return on assets (FY2026) | -0.8% weak |
| Net cash (cash minus debt) | $-768.0M watch |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $673.1M | $-262.0M | $153.9M |
| FY2022 | $1.09B | $-390.3M | $252.6M |
| FY2023 | $1.62B | $-202.3M | $365.1M |
| FY2024 | $2.17B | $-57.7M | $635.3M |
| FY2025 | $2.67B | $-41.5M | $808.2M |
| FY2026 | $3.35B | $-63.2M | $852.4M |
Valuation snapshot
| Market value | $42.42B |
|---|---|
| P/E ratio | — |
| Dividend yield | None |
Rank among 1514 US companies
Market value at each year end
Zscaler’s market value went from $4.79B at the end of 2018 to $42.42B on Oct 27, 2026, about 8.8 times as much; since the end of 2025 it is up 18%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 27, 2026 | $42.42B | +18.3% |
| 2025 | $35.87B | +29.6% |
| 2024 | $27.68B | -15.8% |
| 2023 | $32.86B | +103.7% |
| 2022 | $16.14B | -64.1% |
| 2021 | $45.01B | +68.0% |
| 2020 | $26.80B | +350.4% |
| 2019 | $5.95B | +24.1% |
| 2018 | $4.79B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| ZS price data to Oct 27, 2026 | +15.7% | -20.3% | +19.0% | -3.5% | — |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +15.7% |
| 2025 | +24.7% |
| 2024 | -18.6% |
| 2023 | +98.0% |
| 2022 | -65.2% |
| 2021 | +60.9% |
| 2020 | +329.5% |
| 2019 | +18.6% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 11% over that stretch · deepest drop along the way 39.4%, back to its old high 1.1 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 51.1% over that stretch · deepest drop along the way 57.7%, back to its old high 36.4 months after the low |
Insider activity
Form 4 filings from 2025-10-28 to 2026-10-28 (25 read): 0 open-market purchases and 56 sales ($14.7M), 47 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Oct 9, 2026 | Adam Geller Chief Product Officer | sell (plan) | $4.9M |
| Sep 16, 2026 | Kevin Rubin Chief Financial Officer | sell | $1.1M |
| Sep 21, 2026 | Robert Schlossman Chief Legal Officer | sell (plan) | $1.1M |
| Sep 16, 2026 | Adam Geller Chief Product Officer | sell (plan) | $1.1M |
| Sep 17, 2026 | Adam Geller Chief Product Officer | sell (plan) | $880K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 4.9% | Sep 30, 2026 |
ETFs with the most weight in ZS
| BUG Global X Cybersecurity ETF | 6.28% |
| WCBR WisdomTree Cybersecurity Fund | 5.18% |
| SPAM Themes Cybersecurity ETF | 4.89% |
| SPRX Spear Alpha ETF | 4.77% |
| PSWD Xtrackers Cybersecurity Select Equity ETF | 4.74% |
| CLOU Global X Cloud Computing ETF | 4.54% |
| HACK Amplify Cybersecurity ETF | 4.51% |
| CIBR First Trust NASDAQ Cybersecurity ETF | 4.13% |
What could go wrong
- A breach would hurt a security brand. Zscaler's business rests on trust. If its own platform or systems were breached, or seen to fail at blocking malware for customers, its reputation and financial results could suffer.
- Customers depend on its cloud staying up. Customers route traffic through Zscaler's network of over 200 data centers. An outage, delay or damage to that network could disrupt customers, trigger service credits under its contracts and drive business away.
- Net losses every year since founding. Zscaler has recorded a net loss in every year since it was founded, including $63.2 million in the fiscal year ended July 31, 2026, and expects losses to continue for the foreseeable future.
- Must keep pace with rivals and AI. Cybersecurity competition is intense and increasing. Zscaler must keep releasing new features, including AI tools, on time to win and keep customers. Falling behind could cost it market share.
- Growth relies on renewals and cloud adoption. If subscription customers do not renew or expand, or companies stick with older in-house security hardware, growth could slow. Revenue is spread over contract terms, so weakness may show up late.
- Debt exceeds its cash and investments. As of July 31, 2026, Zscaler had about $1.70 billion of debt and $928 million of cash and investments. Meeting those debt payments will require significant cash that could otherwise fund the business.
Recent events
- Investor presentation or announcement
- Executive or board change
- Quarterly results released; Restructuring or exit costs
- Quarterly results released
- Executive or board change
- Quarterly results released
- Shareholder vote results
- Quarterly results released
For income and retirement investors
Zscaler pays no dividend and says it does not intend to pay one in the foreseeable future. It bought back no shares from fiscal 2022 through fiscal 2026, and its share count grew 17.5% between August 2021 and August 2026, giving each share a smaller slice of the company. Free cash flow (cash left after running and equipping the business) was $852 million in the fiscal year ended July 31, 2026, but none was returned to shareholders. An income investor would get no cash from the stock; any return depends on the share price rising.
The price has swung sharply. In the 2020 COVID crash it fell 39.4% but recovered within about a month. In the 2022 bear market it fell 57.7% and took about 36 months to recover. In the year to October 27, 2026, it fell as much as 64.9% from its high. A single stock carries more risk than a diversified fund.
Questions investors ask
Does Zscaler pay a dividend?
No. Zscaler does not pay a dividend, and its annual report says it does not intend to pay one in the foreseeable future. It also bought back no shares from fiscal 2022 through fiscal 2026, while its share count rose 17.5% between August 2021 and August 2026. That means any return depends on the share price rising, and the stock provides no regular income for investors who rely on their portfolio for cash.
How does Zscaler make money?
Zscaler makes money by charging organizations subscriptions to its cloud security platform, the Zero Trust Exchange, and records the revenue over each contract's term. Customers' internet and app traffic passes through Zscaler's network of over 200 data centers, where it is checked and allowed only to approved destinations. It has about 11,000 customers, including over half of the Fortune 500. Revenue was $3.35 billion in the fiscal year ended July 31, 2026, up 25% from the year before.
Is Zscaler profitable?
Not by standard accounting measures. Zscaler had a net loss of $63.2 million in the fiscal year ended July 31, 2026, and has lost money every year since its founding. It expects annual net losses to continue for the foreseeable future. Its cash generation is stronger: free cash flow, the cash left after running and equipping the business, was $852 million, or 25.4% of revenue. Its gross margin, the share of revenue left after the direct costs of delivering the service, was 76.8%.
How has Zscaler stock performed?
It has been volatile, with mixed long-term results. As of October 27, 2026, the share price was down 20.3% over one year and down 16% in total over five years, but up 69% over three years. Calendar years swung widely: down 65% in 2022, up 98% in 2023, down 19% in 2024 and up 25% in 2025. Year to date through October 27, 2026, it was up 15.7%. These are price returns; Zscaler pays no dividend.
Which ETFs hold Zscaler stock?
About 151 ETFs hold Zscaler. The heaviest weightings are in cybersecurity and cloud funds, including Global X Cybersecurity ETF (BUG) at about 6.3%, WisdomTree Cybersecurity Fund (WCBR) at 5.2%, Amplify Cybersecurity ETF (HACK) at 4.5% and First Trust NASDAQ Cybersecurity ETF (CIBR) at 4.1%. In each, Zscaler is one holding among many, so these funds may suit investors who want cybersecurity exposure without depending on one company. They are worth comparing on cost and how concentrated they are.