• Zscaler recently acquired SquareX to embed Zero Trust security directly into standard browsers via lightweight extensions, while also hosting a Zero Trust masterclass and presenting at the WEST 2026 conference in San Diego.
• Together, these moves highlight how Zscaler is trying to respond to evolving AI-driven threats and customer demands for simpler, browser-native security controls.
• We'll now examine how Zscaler’s browser-focused SquareX acquisition and AI threat response efforts might influence its existing investment narrative.

Find 51 companies with promising cash flow potential yet trading below their fair value.

Zscaler Investment Narrative Recap

To own Zscaler, you generally need to believe in long term demand for its cloud delivered Zero Trust platform, even as hyperscale cloud providers and rival security vendors keep integrating more overlapping capabilities. The SquareX browser acquisition and AI focused messaging look directionally aligned with Zscaler’s Zero Trust and AI security catalyst, but do not materially change the near term risk that rising competition and bundled offerings could pressure growth and margins.

Among the recent updates, the SquareX deal is most relevant here because it extends Zscaler’s Zero Trust approach directly into standard browsers via lightweight extensions. That could reinforce its Zero Trust Everywhere catalyst around larger platform deals, but it also shines a light on the execution risk of rapidly expanding into new security categories while the company is still unprofitable and facing sector wide worries about AI agents reshaping software business models.

But while the story sounds promising today, investors should also understand how rising cloud provider competition could...

Zscaler's narrative projects $4.7 billion revenue and $139.8 million earnings by 2028.

Uncover how Zscaler's forecasts yield a $317.58 fair value, a 82% upside to its current price.

Exploring Other Perspectives

Before this news, the most optimistic analysts were assuming revenue could reach about US$4.8 billion and earnings about US$310.6 million by 2028, but if AI agents or hyperscaler bundles reshape demand faster than expected, that upside view and the contrasting risk that larger bundled contracts might later drag on recurring growth could both look very different, so it is worth comparing several viewpoints before you decide how you feel about Zscaler’s path.

Explore 9 other fair value estimates on Zscaler - why the stock might be worth as much as 82% more than the current price!

Build Your Own Zscaler Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• 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.
• Our free Zscaler research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Zscaler's overall financial health at a glance.

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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.