Zscaler (ZS) Stock Forecast & Price Target

Zscaler is supported by a durable core Zero Trust SASE business that reached $2.8B of FY26 ARR and still grew at an 18% FY23–FY26 CAGR, while the broader company produced 25% revenue growth and a 23% FCF margin in FY26 at a $3B+ ARR scale. Its outlook is strengthened by multiple expansion vectors, including Zero Trust SASE for Branch and Cloud at about $250M of FY26 ARR, Data Security at $410M, and Security for AI at roughly $70M with >1,000% y/y growth and strong bookings and pipeline momentum. The company also has substantial embedded runway, with more than $19B of addressable spend inside the installed base versus $3.8B of FY26 ending ARR, plus AI-driven demand, expanding enterprise urgency, and a management team that reaffirmed continuity in GTM execution.

Zscaler is vulnerable to intensifying competition from major public cloud providers and new software entrants, which could offer similar or better functionality at materially lower prices and compress margins. Its growth thesis also depends on customers abandoning physical security appliances, yet that transition may proceed more slowly or incompletely, while a weaker global economy or slower SaaS/cloud adoption could extend sales cycles and reduce IT spending. Operational risk is elevated because Zscaler depends on third-party data center relationships it does not control, and staffing challenges in technical and sales roles could further limit product development and go-to-market execution.