Zscaler

ZS

Market cap $34.6B

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The S&P 500 booked its third consecutive gain of over 15% in 2025, but it wasn't a banner year for everyone. Some of the market's previous objects of affection treaded water in 2025, especially following the tariff re-rating in April.

Zscaler (ZS) concluded the recent trading session at $220.32, signifying a -4.69% move from its prior day's close.

Once a poster child of the Zero Trust boom, Zscaler Inc (NASDAQ: ZS) is no longer trading like a market darling. The NASDAQ-100 cybersecurity stock is sitting roughly 30% below its all-time high, with the recent Death Cross underscoring how far sentiment has shifted from the days of premium, momentum-driven valuations.

I believe the post–Q1 FY26 selloff is overdone versus fundamentals. Growth is intact, with ARR reaching $3.2B (+26% YoY) in Q1 FY26, and FY26 ARR guidance was raised. AI security is a standout segment: it grew 80% YoY, and management targets $500M ARR by FY26 year-end, about 13.5% of the consolidated FY26 ARR midpoint. Data Security Everywhere ended the quarter at $450M ARR, and Zero Trust Everywhere adoption hit 450 enterprises three quarters ahead of plan.

SAN JOSE, Calif., Jan. 05, 2026 (GLOBE NEWSWIRE) --   Zscaler, Inc. (NASDAQ: ZS), the leader in cloud security, today announced the appointment of Sunil Frida as Chief Marketing Officer (CMO). In this role, Frida will lead Zscaler's global marketing organization, overseeing product marketing, brand strategy, demand generation, corporate communications, and go-to-market execution to further accelerate the company's leadership in the Zero Trust and AI security market.

Jay Chaudhry, Zscaler CEO, joins 'Closing Bell Overtime' to talk what is ahead for AI in 2026 and the shift to Agentic AI.

CrowdStrike's cloud-native cybersecurity business is booming. Zscaler leads the cloud-native “zero trust” market.

Zscaler Inc  (NASDAQ:ZS) stock just hit its lowest level since April, last seen down 0.2% to trade at $226.95.

CrowdStrike, Fortinet and Zscaler are capitalizing on exploding cybercrime costs as enterprises boost spending to protect cloud and AI systems.