Zscaler Inc
- Industry
- Software & Internet
- Exchange
- US
- Country
- USA
- IPO date
- Mar 16, 2018
- Employees
- 7,923
- Website
- www.zscaler.com
Composite valuation range · conservative $90–$115 / fair $120–$155 / optimistic $160–$195. At $147.3, Within the fair intrinsic-value range.
At publication $180 (May 23, 2026)
Data from EODHD, shown in the reporting currency; for reference only, not investment advice.
Zscaler, Inc. operates as a cloud security company worldwide. The company offers cyberthreat protection products, including Zscaler Internet Access, which provides threat protection, cloud sandbox, and cloud browser isolation; Zscaler Private Access solution that includes cyberthreat and data protection, application discovery, secure application access, application segmentation, application protection, reduced attack surface, and browser isolation; Zero Trust Firewall; Cloud Sandbox; and Zero Trust Browser. It also provides data security products, such as web and email DLP, endpoint DLP, BYOD security, multi-mode CASB, unified SaaS security, DSPM, AI-SPM, public gen AI security, and Microsoft Copilot data protection; Zero Trust Cloud solution. In addition, the company offers Zero Trust Branch comprising Zero Trust SD-WAN; IoT/OT segmentation; privileged remote access; Zscaler Cellular; and Zscaler Digital Experience that measures end-to-end user experience across business applications, as well as provides an easy-to-understand digital experience score for each user, application, and location within an enterprise. Further, it provides security operations products, including data fabric for security; asset exposure management; Risk360; unified vulnerability management; deception; managed detection and response; and managed threat hunting. Additionally, the company offers Zero Trust Gateway, a fully managed Zscaler service. It serves the automotive, airlines and transportation, conglomerates, consumer goods and retail, energy, financial services, healthcare, insurance, manufacturing, media and communications, public sector and education, technology, and telecommunications services industries. The company was formerly known as SafeChannel, Inc., and changed its name to Zscaler, Inc. in August 2008. Zscaler, Inc. was incorporated in 2007 and is headquartered in San Jose, California.
History
Zscaler, Inc. was incorporated in 2007 under the name SafeChannel, Inc. and changed its name to Zscaler, Inc. in August 2008; it is headquartered in San Jose, California. Founder Jay Chaudhry has served as CEO and Chairman since 2007. The company completed its IPO on March 16, 2018. Its business is built around the cloud-native Zero Trust Exchange, which began with Zscaler Internet Access (ZIA) and Zscaler Private Access (ZPA) and has since expanded to branch, data, cloud, digital experience, AI/agentic security, and managed detection and response. Revenue grew from $673 million in FY2021 to $2.673 billion in FY2025, and by the quarter ended January 31, 2026 annual recurring revenue (ARR) reached $3.359 billion. As of July 31, 2025 the company had more than 9,400 customers, and it employs 7,923 people. During the first half of FY2026 Zscaler completed the acquisitions of Red Canary and SPLXAI for a combined purchase price of about $692 million and announced the acquisition of SquareX; correspondingly, goodwill rose from $418 million in July 2025 to $1.001 billion as of January 31, 2026. Shares outstanding increased from 138.7 million in July 2021 to 160.6 million by January 2026.
Industry position
Zscaler operates as a cloud security company in the Zero Trust and SSE/SASE space. Its multi-tenant, globally distributed platform runs across more than 160 public exchanges, processes over 500 billion requests per day, and handles about 130TB of raw logs daily. Subscription and related support accounted for about 98% of revenue in FY2025, with contracts typically running one to three years and generally prepaid annually; gross margin has stayed in the high-70% range. The customer base skews to large organizations: roughly 40% of the Forbes Global 2000 and over 45% of the Fortune 500 are customers, and about 49% of revenue comes from outside the United States. By January 31, 2026 the company had 728 customers with more than $1 million in ARR and 3,886 customers with more than $100,000 in ARR. The SASE market was estimated by Gartner (cited via Reuters) to grow from about $7 billion in 2022 to about $25 billion in 2027. Competition is broad, spanning legacy on-premises appliance vendors, independent security vendors, large networking vendors, and point-product providers; named competitors include Palo Alto Networks, Netskope, Fortinet, and Cloudflare, and Forrester's first SSE Wave in 2024 evaluated 11 vendors. Zscaler's moat sources are factual: a multi-tenant distributed cloud architecture, scale, high switching costs once the platform is embedded in customer traffic, identity, policy, and application-access paths, a joint go-to-market channel model with telecom carriers, system integrators, VARs, and cloud marketplaces, and government and international compliance credentials including FedRAMP, DoD IL5, and CMMC Level 2.