• Earlier in August 2026, Zscaler and Carahsoft Technology Corp. expanded their partnership to extend the Zscaler Zero Trust Exchange platform into U.S. SMB and mid-market segments, offering standardized bundles, simplified pricing, and partner enablement to replace legacy, appliance-based security architectures with a unified cloud-delivered Zero Trust model.
• This move highlights how Zscaler is using channel partners and packaged Zero Trust offerings to reach underserved smaller organizations, potentially broadening its customer base beyond large enterprises.
• We’ll now examine how this push into SMB-focused Zero Trust bundles through Carahsoft may influence Zscaler’s existing investment narrative.

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Zscaler Investment Narrative Recap

To own Zscaler, you need to believe that its cloud based Zero Trust platform can keep attracting larger security budgets as organizations replace legacy appliances. The Carahsoft SMB push slightly sharpens the near term catalyst around platform adoption ahead of the 3 September earnings release, while the biggest risk remains intensifying competition and bundled offerings from larger cloud and cybersecurity vendors that could pressure margins and Zscaler’s standalone positioning.

The Carahsoft partnership fits alongside Zscaler’s wider partner centric expansion, including its July 2026 tie up with Schwarz Digits to offer sovereign Zero Trust SASE in Germany. Both moves speak to a broader go to market effort to reach new customer segments and regions through partners, which could influence how quickly Zscaler converts its product portfolio and raised FY2026 revenue and ARR guidance into a broader, more diversified customer base.

Yet beneath the growth story, there is a less obvious competitive risk that investors should be aware of as larger platforms bundle more security capabilities and...

Zscaler's narrative projects $5.1 billion revenue and $132.0 million earnings by 2029. This requires 17.1% yearly revenue growth and a $209.4 million earnings increase from -$77.4 million today.

Uncover how Zscaler's forecasts yield a $196.95 fair value, a 17% upside to its current price.

Exploring Other Perspectives

Some of the most optimistic analysts were already assuming around US$5.3 billion of revenue and US$244.8 million of earnings by 2029, so fresh SMB focused deals like Carahsoft could either support that bullish path or highlight how much still has to go right in a market where opinions on Zscaler’s long term risks and rewards can differ widely.

Explore 4 other fair value estimates on Zscaler - why the stock might be worth as much as 53% more than the current price!

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 2 key rewards and 2 important warning signs 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.