- Commvault recently announced a partnership with Zscaler that combines Zscaler Security for AI policy controls with Commvault’s AI and cyber resilience tools to help enterprises govern AI usage and recover quickly from harmful or unsanctioned AI activity.
- The collaboration highlights how Zscaler is extending beyond user protection into securing AI agents, workloads, and data, reinforcing its push to become core infrastructure for safe enterprise AI adoption rather than only a Zero Trust network provider.
- We will now look at how this new Commvault partnership could reshape Zscaler's emerging investment narrative around enterprise AI security.
Scan how Zscaler’s AI security push compares with other potential beneficiaries of enterprise AI adoption by reviewing the hand picked 53 AI infrastructure stocks now shaping this theme.
Zscaler Investment Narrative Recap
To own Zscaler, you need to believe it can evolve from a Zero Trust security vendor into core AI security infrastructure, as Andrei_Niculescu, an investor in the Simply Wall St Community, argues. The Commvault partnership fits that story by pairing Zscaler Security for AI with recovery capabilities. The near term catalyst still sits in Security for AI adoption showing up in bookings and Data Security ARR.
The biggest operational risk is that AI security buying cycles prove slower than the story suggests while Zscaler remains unprofitable and growth expectations are high. If this alliance does not translate into clear customer wins or measurable AI related spend, the headline may not materially change that risk in the short run.
The Commvault announcement matters most because it speaks directly to Zscaler's push to be the policy layer for enterprise AI that Andrei_Niculescu describes. Customers are asking not just how to control AI agents, but how to roll back harmful actions. Joint work on AI discovery, runtime governance, and agent recovery addresses that requirement directly.
For you as a shareholder, the operational question is execution. If Zscaler can use this partnership to deepen Security for AI penetration, particularly where AI agents and data protection are bought together, it supports the platform thesis and cross sell story. If uptake is muted, investors may focus more on the current pullback, insider selling, and the fact that revenue growth forecasts already imply a slower path from here.
On Andrei_Niculescu’s numbers, the narrative points to a fair value of $249.97 for Zscaler, based on revenue expanding 50.6% a year and the business eventually reaching a 12.0% profit margin.
Uncover why Zscaler's fair value indicates a 29% potential upside to its current price that could narrow quickly.
Exploring Other Perspectives
Some of the lowest ranked analysts focus less on AI security upside for Zscaler and more on the risk that newer products fail to scale. Before this partnership news, they were modelling revenue growth of about 16.7% a year and earnings of roughly US$16.6 million by 2029, which paints a far more cautious story. Those views might shift if this Commvault alliance meaningfully reshapes how AI related demand shows up in the numbers, so it is worth comparing these contrasting forecasts and deciding where you sit on that spectrum.
Explore 4 other Zscaler fair value estimates, including one that suggests it could be worth just $233.38!
Form Your Own Verdict
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 Zscaler sized investment ideas?
If the Zscaler story has sharpened your thinking about risk, growth, and durability, it can be useful to line it up against other opportunities using a consistent framework. The Simply Wall St Screener lets you filter for traits you care about and then compare those profiles side by side with your view on Zscaler.
- For investors who care most about resilience and capital preservation, you could start with a focused group of 30 resilient stocks with low risk scores that score well on stability and lower risk metrics.
- If you want stronger balance sheets to complement a higher risk growth position like Zscaler, you can look at companies in the list of solid balance sheet and fundamentals (23 results) and see which ones fit your comfort level.
- Those hunting for potential mispricings can compare Zscaler with a curated set of 19 high quality undiscovered gems that pair quality fundamentals with less attention from the market.
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