Zscaler Q2 Earnings Preview: What To Watch And Why AI Fears Are Overblown

Zscaler faces mounting competitive pressures, lagging Cloudflare in RPO growth and Net Retention, while Palo Alto Networks picks up momentum with its M&A-based strategy. Despite solid revenue and customer growth, ZS's stagnant operating margin and softer forward guidance have weighed on investor sentiment. ZS trades at a forward P/E of 45, compressing to 30 by FY 2028, but market fears over share losses demand outperformance in RPO and retention.

ZS' Z-Flex bookings jumped 70% sequentially to $175M in Q1 FY26, boosting multi-year deals and revenue visibility as enterprise adoption accelerates.

QLYS may have the edge over ZS as steady growth, expanding VMDR traction, and a cheaper valuation outweigh Zscaler's faster growth and AI push.

Aberdeen Group plc increased its position in Zscaler, Inc. (NASDAQ: ZS) by 5.2% during the undefined quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 64,906 shares of the company's stock after buying an additional 3,233 shares during the quarter. Aberdeen

The major stock indexes rose on Wednesday morning as the AI rally found its footing after a string of volatile sessions colored by concerns about AI-driven disruption.

Zscaler CEO Jay Chaudhry discusses why large businesses need AI security protections

NEOS Investment Management LLC grew its stake in Zscaler, Inc. (NASDAQ: ZS) by 78.5% during the undefined quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 46,417 shares of the company's stock after purchasing an additional 20,416 shares during the quarter. NEOS Investment

In the most recent trading session, Zscaler (ZS) closed at $172.6, indicating a -2.88% shift from the previous trading day.

It's been a rough start to the year for the software sector, but one group of experts said they see big gains ahead for some beaten-down cybersecurity stocks.