Is Zscaler stock a buy right now?

Roth Capital Markets analyst Taz Koujalgi maintained a “Neutral” rating and US $215 .00 price target on Zscaler (Zscaler Stock Quote, Chart, News, Analysts, Financials NYSE:ZS) in a Sept. 3 report, saying the company’s latest guidance looks “conservative” in light of accelerating billings and deferred revenue trends.

He added that Zscaler shares “can be volatile, and frequently trade in and out of our 10% threshold,” which explains why his target sits outside the typical range for a “Neutral” call.

Zscaler, founded in 2007, is a San Jose, California–based cloud security company that provides a platform to secure internet access and private applications for enterprises.

Zscaler reported fiscal fourth-quarter revenue of US$719-million, up 21% year-over-year and ahead of consensus at US$707-million. Billings of US$1.2-billion rose 32% and beat expectations of US$1.14-billion, while operating income of US$251-million and free cash flow of US$172-million also topped estimates.

Management guided fiscal 2026 revenue to US$3.27-billion, including an expected US$90-million contribution from Red Canary, and first-quarter revenue of US$772–774-million. Koujalgi said that stripping out Red Canary implies “organic” revenue of US$3.19-billion, modestly below Street estimates, but he believes Zscaler could ultimately deliver closer to 22% growth.

“We are encouraged by the strength in billings and cRPO accelerating and believe the guide is conservative,” he said, noting that management’s forecast for Red Canary may leave a US$20–25-million buffer.

Zscaler highlighted three growth vectors — Zero Trust Everywhere, Data Security and AI Security — that now represent about US$1-billion in annual recurring revenue and are growing faster than the overall business. Koujalgi said those areas, together with stronger Red Canary demand, provide support for upside into 2026 despite management’s cautious outlook.

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