Latest news with #ZS
Yahoo
10-06-2025
- Business
- Yahoo
Zscaler Nears $3B ARR Goal: Can It Maintain the Momentum Through FY25?
Zscaler ZS ended third-quarter fiscal 2025 with $2.9 billion in annual recurring revenues (ARR), representing the third consecutive quarter of 23% year-over-year growth. The management stated that it remains confident in achieving its $3 billion ARR target by the end of the fourth quarter of fiscal key driver is the Z-Flex purchasing program launched during the third quarter, which simplifies procurement and allows customers to scale adoption of Zscaler's platform. Z-Flex generated $65 million in TCV bookings in its first quarter, with large clients like a Fortune 500 tech firm increasing their ARR by more than 40% to nearly $19 is also leaning heavily into three strategic pillars – Zero Trust Everywhere, Data Security Everywhere, and Agentic Operations (its artificial intelligence [AI]-driven initiative). Together, these areas now account for nearly $1 billion in standout here is Zero Trust Everywhere. Zscaler ended the third quarter with more than 210 enterprise customers in this segment, up 60% from the previous quarter. ZS intends to triple the customer base for this offering from 130 to over 390 by the end of fiscal 2026, and it's well on track to do just Zscaler ended the quarter with 642 customers generating more than $1 million in ARR and 3,363 customers with ARR over $100,000. Its 114% trailing 12-month net retention rate shows continued expansion within existing accounts. With a strong platform, disciplined execution, and growing demand for AI and Zero Trust capabilities, Zscaler appears well-positioned to drive the next phase of ARR growth. Competitors like CyberArk CYBR and SentinelOne S are also gaining ground through platform expansion and AI innovation. CyberArk ended its first quarter of fiscal 2025 with $1.215 billion in ARR, representing a year-over-year increase of 50%. The robust growth was driven by the sustained growth of subscriptions and increased adoption of CyberArk's identity security a small competitor, SentinelOne's ARR is also growing rapidly with reaching $948 million at the end of the first quarter of fiscal 2026. This represents a year-over-year rise of 24% fueled by growing adoption of SentinelOne's AI-first Singularity platform and Purple AI. Shares of Zscaler have surged 66.3% year to date compared with the Zacks Security industry's growth of 22%. Image Source: Zacks Investment Research From a valuation standpoint, ZS trades at a forward price-to-sales ratio of 15.21, slightly above the industry's 14.77. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Zscaler's fiscal 2026 earnings is pegged at $3.18 per share, up by 3.92% over the past 30 days, which implies a 0.31% drop year over year. The consensus mark for fiscal 2027 is also up by 2.01% over the past 30 days at $3.55 per share, indicating a year-over-year increase of 11.86%. Image Source: Zacks Investment Research ZS stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SentinelOne, Inc. (S) : Free Stock Analysis Report CyberArk Software Ltd. (CYBR) : Free Stock Analysis Report Zscaler, Inc. (ZS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Hypebeast
10-06-2025
- Automotive
- Hypebeast
MG Motor's Latest ZS SUV Model Arrives in the Middle East
MG Motorannounces the regional launch of its all-new ZS SUV model, bringing its latest developments in design and tech to theMiddle East. Having cut through the noise of the car market with its previous ZS generations, the latest arrival continues to build on the range's success by delivering a practical combination of space and enhanced performance. From the outside, the signature sculpted shape, hunter-eye style LED headlights, and 18-inch alloy wheels are maintained, while the addition of a spoiler gives the model a new sporty quality. With inner-city driving becoming a growing factor for those in the region, theSUVoffers a 1.5-liter engine with two powertrain options, including a 112 horsepower and 168 horsepower variant. Both of these options come with three drive modes that allow the car to adapt from tight city streets to open highways. Keeping safety at the forefront of the design approach, the brand updates the ZS with forward collision warning and speed assist as well as a 360° camera that shares visuals on a built-in infotainment system. Inside, the driving experience is complete with a jet wing-inspired console, panoramic sunroof, and a mix of premium woven and leather fabrics. In an official statement, Tom Lee, Managing Director of MG Motor shared, 'The new MG ZS delivers exactly what today's drivers seek—style, capability, and outstanding value. This latest generation reflects MG's commitment to innovation, not only through upgraded technology but also as part of our broader vision to integrate new EV technologies into our global lineup. We are excited to bring this model to our customers across the region, offering a dynamic and future-ready driving experience.' Take a closer look at the latest MG ZS in the gallery above. To find out more, head to MG Motor'swebsitenow.
Yahoo
06-06-2025
- Business
- Yahoo
Zscaler's Agentic Ops Surge: Will It Be the Next Growth Driver?
Zscaler's ZS agentic operations are experiencing massive growth in information technology operations (ITOps) and Security Operations (SecOps). In the ITOps business, Zscaler rolled out ZDX Copilot as an integrated feature in the ZDX Advanced Plus package. In SecOps, Zscaler introduced agentic operations across multiple modules, including Risk360, Business Insights, Unified Vulnerability Management, Identity Threat Detection, and Cyber Asset Attack Surface Management. Since the introduction of ZDX Copilot, the company has experienced a 70% year-over-year rise in the bookings of the ZDX Advanced Plus package. As Zscaler's customers benefited from the lower mean time-to-resolution of service tickets, its ZDX Advanced Plus package grew to $75 million in bookings since the introduction of ZDX Copilot. Zscaler's SecOps business experienced 120% year-over-year growth in annual contract value since the integration of agentic operations in its security solutions. Driven by these factors, the New Growth Categories (NGC), which account for Zero Trust Everywhere, Data Security Everywhere and Agentic Operations, reached the milestone of approximately $1 billion in annual recurring revenues (ARR), while ZS' total ARR reached $2.9 billion in the third quarter fiscal 2025. The company in its third-quarter fiscal 2025 earnings reported that its NGC revenues were growing at a faster pace than its average ARR. Zscaler's Agentic Operations will help better compete with its rivals. Zscaler's competitors, including Palo Alto Networks PANW and CrowdStrike CRWD, have also expanded their expertise in Agentic Operations. Palo Alto Networks has deployed Cortex XSIAM for incident detection, investigation and response purposes. Palo Alto Networks' Cortex XSIAM continuously scans via telemetry across endpoints, network and cloud for providing accelerated threat response. CrowdStrike has introduced Falcon Next-Gen SIEM and Charlotte AI. While Charlotte AI functions as a generative AI security analyst, reducing the support time provided by cybersecurity professionals, CrowdStrike's Falcon Next-Gen SIEM provides a unified platform for detecting threats, investigating attacks and responding to them. Since the Agentic Operations market is still expanding, multiple players have enough room to grow in this space. This has been a boon to players like Zscaler who got the headstart in the emerging Agentic Operations market. Shares of Zscaler have gained 66.8% year to date compared with the Zacks Security industry's growth of 20.6%. Image Source: Zacks Investment Research From a valuation standpoint, Zscaler trades at a forward price-to-sales ratio of 15.16X, higher than the industry's average of 14.6X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Zscaler's fiscal 2025 earnings implies a year-over-year decline of 0.31% while the 2026 earnings estimate imply growth of 11.86%. The estimates for fiscal 2025 and 2026 have been revised upward in the past seven days. Image Source: Zacks Investment Research Zscaler currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Zscaler, Inc. (ZS) : Free Stock Analysis Report CrowdStrike (CRWD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
04-06-2025
- Business
- Yahoo
Red Canary Acquisition, AI Innovations Propel Zscaler's Growth Story: Analyst
Needham analyst Mike Cikos maintained a Buy rating on Zscaler (NASDAQ:ZS) and raised the price forecast from $310 to $350. On June 3, Cikos attended Zscaler's annual Zenith event, the company's flagship gathering for customers and partners. In an analyst note, he said that the company unveiled several new capabilities, primarily focused on AI and the expansion of its Zero Trust Everywhere initiative. These enhancements aim to bolster data security and thwart cyberattacks, directly addressing critical challenges businesses face when adopting AI, such as protecting proprietary information and ensuring regulatory stated that he sees Zenith as Zscaler's initial presentation of management's expansive vision for a reimagined Agentic SOC (Security Operations Center) powered by AI innovations supporting their Data Fabric for Security. Concurrently, the acquisition of Red Canary is expected to accelerate this vision by adding domain experts capable of engaging with customer SOC teams, a slightly different client persona, the analyst noted. Additionally, the analyst pointed out that Red Canary is anticipated to empower Zscaler's partners to serve clients better while advancing the Threat Management vision by more effectively utilizing security signals for investigations. The analyst believes that Zscaler is capable of maintaining its high level of execution as new sales hires increase their productivity and attrition rates decline. Cikos mentioned that in the third quarter of FY25, Zero Trust Everywhere customers grew over 60% sequentially to more than 210, targeting over 390 by the end of FY26. The company sees a 6x up/cross-sell opportunity in existing customers, and Cikos views newer products like Branch and AI Analytics as underappreciated. Cikos foresees sustained ~20% growth, with operating margins eventually surpassing 30% in the long term. Price Action: ZS shares are trading higher by 1.05% to $298.19 at last check Wednesday. Read Next:Photo by Sundry Photography via Shutterstock Date Firm Action From To Mar 2022 Daiwa Capital Upgrades Underperform Buy Feb 2022 BMO Capital Maintains Outperform Feb 2022 Deutsche Bank Maintains Buy View More Analyst Ratings for ZS View the Latest Analyst Ratings Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? This article Red Canary Acquisition, AI Innovations Propel Zscaler's Growth Story: Analyst originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
02-06-2025
- Business
- Yahoo
Should You Buy, Sell or Hold ZS Stock After a 46% Rise in 3 Months?
Zscaler, Inc. ZS shares have climbed 46% in the past three months, outperforming the Zacks Security industry's return of 10.7%. ZS stock has also outperformed its industry peers, including CyberArk Software CYBR, Palo Alto Networks PANW and CrowdStrike CRWD. Shares of CyberArk, Palo Alto Networks and CrowdStrike have risen 8.3%, 4.8% and 23.2%, respectively, over the past three months. With Zscaler's massive rise in the past three months, investors now face a key decision: Should they hold on to the stock or book a profit? Image Source: Zacks Investment Research Zscaler has achieved multiple milestones in 2025. ZS launched the Asset Exposure Management solution to enhance organizations' asset risk management capabilities. Zscaler has also partnered with SAP to integrate its Zero Trust Network Access service, Zscaler Private Access, within SAP's RISE framework. This integration will enable enterprises to reduce their reliance on traditional VPNs and firewalls and simplify cloud migrations while complying with evolving regulations. ZS has also expanded its capabilities inorganically with the acquisition of Red Canary, which is a leading provider of Managed Detection and Response solutions in security operations. The organic and inorganic expansion of capabilities is enabling Zscaler to match the rising threats of nation-state cyber warfare, ransomware extortion and increasing incidents of malware attacks. Zscaler is also enhancing its portfolio of offerings with the integration of artificial intelligence (AI) in its products. Zscaler partnered with NVIDIA and integrated NVIDIA's AI technologies, including NIM inference microservices, NeMo Guardrails and Morpheus framework into its Zero Trust Security model. Zscaler partnered with CrowdStrike to leverage CrowdStrike's AI expertise in SIEM, threat intelligence, cyber risk quantification and real-time insights. With all these product and capability enhancements, the demand for Zscaler's cybersecurity solutions remains strong as reflected by its financials. In the third quarter of fiscal 2025, ZS attained a 12-month trailing dollar-based retention rate of 114%, driven by larger bundle sales and robust upsells. Remaining Performance Obligations, which represent committed, non-cancelable future revenues, were boosted by 30% year over year. At the end of the third quarter, the company had 642 customers with $1 million or higher annualized recurring revenues (ARR). Zscaler's customer count for ARR of more than $100,000 reached 3,363 at the end of the third quarter. Zscaler is rapidly enhancing its GovCloud solutions to receive approvals from the governing bodies. ZS is expanding its presence among government agencies through compliance with government security standards. Zscaler has enabled numerous government agencies to utilize AI-powered Cloud Browser Isolation and IPv6 for secure connectivity, mainstreaming its GovCloud solution among its federal clients. In the last reported quarter, Zscaler reported that it is serving 14 out of 15 U.S. cabinet-level agencies. As more government agencies use Zscaler's products, the company's presence in the public sector could expand, providing a stable growth stream. Zscaler's recent inclusion in Amazon Web Services' Internet Control Message Protocol, which will ensure that Zscaler's cybersecurity solutions will now be readily accessible to U.S. federal agencies, furthers its reach among federal agencies. Zscaler faces intense competition from other established cybersecurity players, including Palo Alto Networks, CyberArk and CrowdStrike. Zscaler Internet Access and Private Access face competition from Palo Alto Networks Prisma Access, Prisma SD-WAN, CrowdStrike Falcon Zero Trust, CyberArk Secure Web Sessions and CYBR Identity Security Platform. To survive in the highly competitive cybersecurity market, Zscaler is continuously investing in broadening its capabilities. Over the past few years, ZS has invested heavily to enhance its S&M capabilities, particularly by increasing the sales force. Unfortunately, its aggressive investment in S&M and R&D might weigh on its near-term profitability. Zscaler now expects its non-GAAP earnings per share for fiscal 2025 in the band of $3.18-$3.19. The Zacks Consensus Estimate for Zscaler's fiscal 2025 earnings is pegged at $3.06 per share, reflecting a 4% year-over-year decline. Image Source: Zacks Investment Research Zscaler holds a premium valuation, reflected in its Zacks Value Score of F. This is further reinforced by its Forward 12-month P/S ratio of 13.92X, significantly exceeding the Zacks Computer and Technology sector's average of 5.54X. Image Source: Zacks Investment Research Although Zscaler faces challenges related to increasing expenses, shrinking margins and premium valuation, the company's heavy investment in AI, innovative cybersecurity capabilities, customer retention and long-term contracts with government agencies make the stock worth retaining at present. Zscaler carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report CyberArk Software Ltd. (CYBR) : Free Stock Analysis Report Zscaler, Inc. (ZS) : Free Stock Analysis Report CrowdStrike (CRWD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
