Zscaler, Inc. Stock News

CHANTILLY, Va.--(BUSINESS WIRE)--Red River earns Zscaler Delivery Services and Managed Security Services Partner (MSSP) authorizations.

While the huge spike in spending on artificial intelligence (AI) has gotten all the investment attention in the technology sector over the past year, that doesn't mean that increased cybersecurity spending went away. In fact, market research company Gartner recently forecasted that cybersecurity spending will increase from $183.7 billion in 2024 to $293.9 billion in 2028 (a 60% increase).

I'm reiterating my buy rating on Zscaler with an updated price target of $208 for the company, based on 9.5x EV/FY26 revenue. The stock has slid ~15% over the past 12 months, putting Zscaler at only a slight premium to software industry heavyweights like Salesforce despite Zscaler's superior growth profile. Longer term, Zscaler continues to enjoy secular tailwinds in cloud adoption that are all...

Amidst a frothy tech market, Zscaler is curiously performing weakly. I expect the company to achieve GAAP profitability on a sustainable basis some time this year. Management's guidance suggests billings growth acceleration in the second half, with a full-year revenue growth forecast of 21.8%.

Zscaler's Q1 FY25 earnings showed 26% YoY revenue growth and 48% YoY earnings growth, beating estimates and leading to an upward revision in FY25 guidance. The company is expanding its AI product portfolio, with ARR from emerging solutions growing twice as fast as core products as a result of significant customer adoption. Despite potential margin pressures from sales rep hiring pace, Zscaler's...

The cybersecurity market is well-insulated from economic downturns because companies generally won't turn off their digital defenses to save a few dollars. It should also continue expanding for at least the next decade as cyberattacks become increasingly frequent and sophisticated.

Technology not only helps to improve our lives but also provides us with easier access to our loved ones. The digitization wave has prompted individuals and corporations to embrace cloud computing, while the emergence of generative artificial intelligence (AI) has seen an explosion in new uses.

Nach dem KI-Hardware-Boom könnte nun das Software-Segment den Siegeszug antreten. Besonders interessant scheint das Thema Cybersecurity zu sein.