Zscaler's Zero Trust Exchange: A Cybersecurity Leader with a Strong Track Record and Bright Future Ahead

Zscaler, a cybersecurity company, has a consensus "buy" rating from Wall Street analysts. Despite being 25% below its 2021 record high, the stock is expected to continue its recovery. The company's Zero Trust Exchange plugs vulnerabilities in businesses' online operations, and its Zero Trust Everywhere approach aims to isolate every facet of an organization from cybersecurity threats. With over 9,400 customers and 350 adopting the Zero Trust Everywhere approach, the company is comfortably on track to meet its goal by the end of fiscal 2026.

Zscaler Inc. (NASDAQ: ZS), a leading cybersecurity company, reported strong fourth-quarter results, reflecting robust growth driven by its AI-centric strategies. The company's CEO, Jay Chaudhry, highlighted the company's entry into the era of omnipresent AI, which is transforming enterprises and leading to explosive growth in AI and machine learning traffic on their cloud platform [1].

Zscaler's revenue for the fourth quarter of 2025 was $719.23 million, up 21% year-over-year, and exceeded analyst estimates by $3.28 billion for 2026 [2]. The company's AI innovations, including data classification engines and ZDX CoPilot, along with the $675 million acquisition of Red Canary, contributed to a 32% increase in calculated billings to $1.2 billion [3].

The company's cloud-native Zero Trust Exchange platform and AI models trained on three trillion weekly logs have outperformed privacy-focused competitors in threat detection [4]. Zscaler's data-centric approach sets it apart, with AI models that offer unparalleled accuracy in threat detection, a significant advantage in the evolving landscape of AI-driven cybersecurity threats.

Zscaler's strategic focus on AI and cloud-native security positions it as a long-term winner in the $175.32 billion cloud security market, projected to grow at a 13.86% CAGR through 2035 [5]. The company's aggressive expansion, targeting 390 enterprise clients by 2026, further solidifies its leadership in the cybersecurity industry.

Despite being 25% below its 2021 record high, Zscaler's stock is expected to continue its recovery, supported by strong financial performance and innovative AI-driven solutions. The company's Zero Trust Exchange platform and Zero Trust Everywhere approach aim to isolate every facet of an organization from cybersecurity threats, making it a compelling investment for those seeking exposure to the cybersecurity sector.

References:
[1] https://www.benzinga.com/markets/earnings/25/09/47466591/zscaler-ceo-says-weve-entered-an-era-of-omnipresent-ai-as-ai-security-zero-trust-data-protection-cross-1-billion-in-arr
[2] https://www.ainvest.com/news/zscaler-accelerating-ai-driven-cybersecurity-growth-high-conviction-play-ai-security-boom-2509/
[3] https://www.investing.com/news/swot-analysis/zscalers-swot-analysis-cloud-security-leaders-stock-poised-for-growth-93CH-4218293