Zscaler (ZS): analysis in plain words
Is Zscaler cheap or expensive? How it makes money, whether it grows and its risks, explained in plain words and with its official accounts.
Zscaler (ZS) is listed on the Nasdaq and we classify it in software and cloud. Below are its key dated figures, how it makes money, how it compares with its sector, what works for and against Zscaler according to those figures, and the questions people ask most about the stock. No buy or sell tips.
Zscaler (ZS) key figures as of November 4, 2026
| Figure | Value | What it measures |
|---|---|---|
| Share price | $224.44 | Last price on November 4, 2026 |
| P/E ratio (TTM) | N/A | Price over earnings per share |
| Revenue growth | +24.9% | Latest quarter vs the same quarter a year earlier |
| Net margin (TTM) | -1.9% | Profit for every 100 of sales |
| Net debt / EBITDA | Net cash (more cash than debt) | Years of operating profit to repay debt |
| Dividend yield | 0.00% | Annual dividend over price |
| Market cap | $36.6 billion | What the stock market values it at |
The Zscaler figures come from Yahoo Finance, the same source the Fintols analysis uses, retrieved on November 4, 2026. Any ZS figure that is not available shows as N/A: we do not estimate it.
How Zscaler makes money
Zscaler sells cloud-based cybersecurity on a subscription basis. Its Zero Trust Exchange platform sits between employees and the apps or internet they use and checks every connection, with products like Zscaler Internet Access and Zscaler Private Access. Its customers are large enterprises and government agencies, and the US is its biggest market.
Over the last 12 months, Zscaler brought in revenue of $3.4 billion. For every 100 it sells, Zscaler keeps 76.9 after the direct cost of what it sells (gross margin) and -1.0 after all operating costs (operating margin). With 8,700 full-time employees, that is about $385,000 of revenue per employee.
Zscaler against its sector
To know whether a Zscaler figure is high or low you have to put it next to similar companies. This table compares Zscaler with the median of the 19 software and cloud companies Fintols covers, with data as of November 4, 2026.
| Figure | Zscaler | software and cloud median |
|---|---|---|
| Revenue growth | +24.9% | +20.5% (25) |
| Net margin | -1.9% | 16.0% (25) |
| Dividend yield | 0.00% | 0.00% (25) |
| Net debt / EBITDA | -36.6x | 0.1x (23) |
In short, against the typical software and cloud company, Zscaler grows faster, earns a thinner margin and carries less debt. By size, Zscaler ranks number 20 of 22 software and cloud companies quoted in USD on Fintols.
The bull case for Zscaler
These are the strengths in the Zscaler figures as of November 4, 2026:
- Zscaler is selling more than a year ago: +24.9% in its latest quarter (the typical software and cloud company grew +20.5%).
- Zscaler holds more cash than debt (net cash), so it does not depend on lenders to keep investing and is better placed to ride out a bad year.
The main risk for Zscaler
Zscaler is losing money: its net margin over the last 12 months is -1.9%, so it spends more than it brings in. Until it turns a profit it relies on its cash or on raising money.
On top of that: zscaler stock sits 33% below its 52-week high ($333.90): the market has cut its expectations, and it is worth understanding why first.
And, like the rest of software and cloud, Zscaler is exposed to a competitor or AI making what it sells cheaper and forcing price cuts.
Frequently asked questions about Zscaler
Is it a good time to buy Zscaler stock?
Fintols does not tell you whether to buy or sell Zscaler, and nobody knows what the price will do tomorrow. What we can show you is where it stands today. As of November 4, 2026, Zscaler stock trades at $224.44, 33% below its 52-week high ($333.90) and 96% above its low ($114.63). With Zscaler, as with any stock, timing matters less than understanding the business, investing for the long run and not betting everything on a single company.
Does Zscaler pay a dividend?
No. As of November 4, 2026, Zscaler does not pay a dividend: what it earns stays in the company to grow, invest or, where it does so, buy back shares. Anyone buying Zscaler today is counting on the share price rising, not on income.
Is Zscaler stock expensive?
Zscaler has no meaningful P/E as of November 4, 2026 because its last 12 months of earnings are negative or close to zero, so that yardstick cannot tell you whether it is expensive. Including its debt, Zscaler is valued at 800.4x its EBITDA (EV/EBITDA). A high P/E alone does not make Zscaler expensive: it can be justified if earnings grow fast, and a low one can reflect a business in trouble.
Who are Zscaler's competitors?
On Fintols we compare Zscaler with Datadog, Snowflake and Cloudflare, which are also in software and cloud. As of November 4, 2026, Datadog is worth $67.8 billion and trades on a P/E of 377.4; Snowflake is worth $102.5 billion; Cloudflare is worth $94.9 billion. Each has a side-by-side comparison with Zscaler below.
Zscaler competitors
- Datadog (DDOG) analysis · Zscaler vs Datadog comparison
- Snowflake (SNOW) analysis · Zscaler vs Snowflake comparison
- Cloudflare (NET) analysis · Zscaler vs Cloudflare comparison
To understand Zscaler better
- Economic Moats Explained: From Warren Buffett to AI
- 7 Common Beginner Investing Mistakes (and How to Avoid Them)
More companies like Zscaler: software and cloud stocks. Open the full ZS analysis with its valuation and scenarios. Educational content about Zscaler, not investment advice.