- Zscaler reported full year 2026 results with sales of US$3.35b, a net loss of US$63.18m, and basic loss per share of US$0.39.
- The company paired these figures with fiscal 2027 guidance that points to double digit revenue and ARR growth, along with a US$1.69b shelf filing tied to an ESOP related common stock offering.
- With Zscaler projecting double digit fiscal 2027 revenue growth, this guidance may influence how some investors view the broader investment narrative.
Zscaler Investment Narrative Recap
To own Zscaler, you need to be comfortable with a business that is still loss making but pushing hard on cloud delivered security at scale. The latest full year numbers show sales of US$3.35b alongside a net loss of US$63.18m and basic loss per share of US$0.39. Fiscal 2027 guidance for double digit revenue and ARR growth keeps the growth thesis intact in the near term. The main upside driver remains sustained demand for Zero Trust and data security products. The key risk is that heavy investment and competition keep profitability progress slower than some holders might like.
The most relevant update here is Zscaler's fiscal 2027 outlook that calls for revenue of US$3.91b to US$3.94b and ARR of US$4.40b to US$4.43b. That guidance sits alongside a shelf registration of about US$1.69b for ESOP related common stock, which could modestly increase share count over time. For you as an investor, the near term story now hinges on execution against that mid teens growth plan while still narrowing losses. Any sign that competition, pricing pressure, or higher costs push results away from that range would quickly refocus attention on risk rather than scale.
Even so, there is a quieter issue around Zscaler that is easy to overlook until you think about...
Read the full Zscaler narrative to see the case behind these numbers.
Zscaler's narrative projects revenues of US$5.1b and earnings of US$132.0m by 2029, based on analyst models that assume revenue expands at 17.1% per year. That outcome would mean earnings shift from a loss of US$77.4m today to a profit of US$132.0m, a swing of about US$209m over the period.
Zscaler's forecasts point to a fair value of $196.95 compared with a $169.80 share price, indicating a 16% upside to its current price that may not last much longer.
Exploring Other Perspectives
One alternate view focuses on margin pressure rather than growth. The lowest analysts were modelling revenue of about US$5.2b and earnings of roughly US$50m by 2029, far below the US$132m consensus. That more cautious camp already saw profitability as fragile, so this new Zscaler guidance may prompt them to revisit those assumptions.
If you want to see how other investors are thinking about Zscaler's price, check out the 4 other fair value estimates for Zscaler.
The Verdict Is Yours
Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.
- A great starting point for your Zscaler research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
- See our latest analysis for Zscaler. The report includes a comprehensive fundamental analysis summarized in a single visual, the Snowflake, making it easy to evaluate Zscaler's overall financial health at a glance.
Looking For More Investment Ideas Beyond Zscaler?
If Zscaler has sharpened your thinking on growth, profitability, and risk, it can help to compare it with other businesses that fit different profiles. The Simply Wall St Screener lets you filter for traits that match your own approach rather than just following headline stories.
- If capital protection and lower volatility appeal to you, check out 83 resilient stocks with low risk scores that score well on resilience and risk metrics.
- For investors who care most about financial strength, scan the list of solid balance sheet and fundamentals (24 results) that pair robust balance sheets with sound fundamentals.
- If you like backing underfollowed stories before they gain wider attention, review the 17 high quality undiscovered gems that combine strong underlying data with less crowd interest.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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