Overview
- Zscaler now trades near $139 a share with a market value of about $22.1 billion, far below its 2021 peak of $368.78 and $51.7 billion.
- Cooling growth and broader pressures such as higher interest rates and geopolitical conflicts have squeezed the company’s valuation.
- At the 2021 top, investors paid 47 times Zscaler’s fiscal 2022 revenue, compared with less than 7 times projected fiscal 2026 revenue today.
- The company sells cloud security built on a zero-trust model that checks every user and device, and it reports more than 9,400 customers including 40% of the Forbes Global 2000.
- Analysts expect revenue to grow about 21% a year from fiscal 2025 to 2028, with GAAP profitability in the last year, as Zscaler expands AI tools like ZDX Copilot, integrations, and acquisitions.