• In April 2026, IXT, a full MVNO focused on secure IoT connectivity, announced it had integrated Zscaler’s Zero Trust Network Access into its global cellular platform, routing all SIM-level device traffic through the Zscaler Zero Trust Exchange for inspection, policy enforcement, and reduced attack surface.
• This collaboration extends Zscaler’s Zero Trust capabilities directly into industrial IoT and operational technology environments with strict regulatory requirements, particularly where third-party privileged remote access has been a long-standing security and compliance challenge.
• We’ll now examine how embedding Zscaler’s Zero Trust at the SIM level for industrial IoT could influence the company’s 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 need to believe cloud-delivered Zero Trust will keep gaining share as organizations move away from perimeter security and VPNs, and that Zscaler can translate that demand into profitable, scalable growth despite ongoing losses and strong competition. The IXT SIM-level integration looks directionally positive for Zscaler’s Zero Trust Everywhere story, but it does not fundamentally change the most important near term catalyst, which remains broader platform adoption, or the key risk around margin pressure from heavy investment.

The IXT news most directly connects to Zscaler’s earlier launch of Zscaler Cellular, which brought Zero Trust to IoT and OT over cellular SIMs. The new integration reinforces that push by embedding Zscaler deeper into industrial and critical infrastructure use cases with tight NIS2 timelines, which could support the broader catalyst of customers replacing legacy VPNs and firewalls with unified cloud-delivered security, even as larger bundled competitors remain a structural overhang.

Yet behind this expanding IoT opportunity, investors should be aware that rising competition and bundled cloud security could still...

Zscaler's narrative projects $5.2 billion revenue and $152.9 million earnings by 2029. This requires 19.9% yearly revenue growth and a $220.5 million earnings increase from -$67.6 million today.

Uncover how Zscaler's forecasts yield a $230.45 fair value, a 76% upside to its current price.

Exploring Other Perspectives

Before this IoT announcement, the most optimistic analysts were already modeling about US$5.5 billion of revenue and US$390.1 million of earnings by 2029, while warning that data localization rules could sharply raise compliance costs and reshape Zscaler’s global opportunity, so you should expect that both bullish and cautious views may shift as this new IoT and OT integration is digested.

Explore 8 other fair value estimates on Zscaler - why the stock might be worth 23% less than the current price!

Reach Your Own Conclusion

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 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.