Zscaler, Inc. (ZS)

Zscaler's stock price has experienced considerable fluctuations and a notable downturn in the past six months, plummeting 41.45% and reaching a new 52-week low. This decline was influenced by disappointing FY2026 guidance, fears of AI disruption, a gross margin miss, and sales force attrition concerns. In Q1 FY2025, Zscaler delivered a robust performance, with revenue reaching $788.1 million, a 25.5% year-over-year increase. Zscaler completed its acquisition of cybersecurity startup SquareX to expand its zero-trust security capabilities to standard browsers. Large-volume put option sell transactions were recorded, indicating that market participants might anticipate the stock price to remain above a specific level.

Zscaler preannounced it would see "almost no seasonality" in its billings, despite initial conservative guidance due to a challenging macro environment. This suggests that demand for Zscaler's offerings may not be subject to significant seasonal fluctuations. Tools are available to analyze ZS's monthly seasonality based on historical price changes and win rates over the past seven years.

Zscaler, Inc. is a cloud security company that pioneered the Security Service Edge (SSE) architecture, founded in 2007 by Jay Chaudhry. Its mission is to secure the modern enterprise by protecting users, applications, and data from cyber threats regardless of location. The company operates within the cybersecurity and cloud computing industries, addressing challenges from the shift to cloud-based applications and remote workforces. Zscaler's cloud-native platform, the Zscaler Zero Trust Exchange, offers a comprehensive suite of security services, including Zscaler Internet Access (ZIA), Zscaler Private Access (ZPA), Zscaler Digital Experience (ZDX), other cyberthreat protection products, data security products, Zero Trust Cloud Solution, Zero Trust Branch, and AI Security Suite.

Zscaler has a significant global presence, serving thousands of customers worldwide, including a substantial portion of the Fortune 500. Its Zero Trust Exchange platform is a vast, globally distributed cloud network with over 160 data centers across 185 countries. In Q1 FY2025, Zscaler's geographic revenue breakdown was Americas (54%), EMEA (30%), and APJ (16%).

Zscaler maintains a strong brand reputation within the cybersecurity industry and is recognized as a leader in cloud security. The company's innovative approach to cloud security has earned it recognition as an industry leader. In the past year, Zscaler launched its AI Security Suite, aiming to enhance enterprise security for AI technologies, which could positively impact its reputation as a forward-thinking security provider.

Zscaler, Inc. has a diverse ownership structure, with institutional investors holding a significant portion of the company's stock. Top institutional holders as of September 2025 include TUDOR INVESTMENT CORP ET AL, Vanguard Group Inc, BlackRock, Inc., FMR LLC, GROUPAMA ASSET MANAGMENT, American Century Companies Inc, State Street Corp, and T. Rowe Price Investment Management Inc. Ajay Mangal is identified as the largest individual Zscaler shareholder.