Zscaler's Platform Keeps Growing: Is Zero Trust Everywhere the Key?

Zscaler ZS is expanding its Zero Trust Exchange with Zero Trust Everywhere. This strategy highlights Zscaler’s ability to take Zero Trust security beyond users to include Zero Trust for Cloud workloads and Zero Trust for Branches.In the third quarter of fiscal 2025, Zscaler reported more than 210 Zero Trust Everywhere enterprises. This represents a sequential growth of 60%. Moreover, 59% of Zero Trust Branch buyers were new logo customers, showing strong early demand. Zscaler aims to exceed 390 customers by the end of fiscal 2026. To support this growth, Zscaler launched Unified Appliance for Branch in the third quarter. The solution simplifies branch infrastructure and eliminates the need for SD-WAN, Firewall, NAC, and legacy segmentation.The solution is gaining significant traction. During the third quarter, Zscaler revealed a seven-figure annual contract value deal in which an existing financial services customer adopted Cloud workload protection to secure all of their internal workload traffic. Zscaler is also focusing on enhancing Zero Trust Everywhere capabilities with new product launches. At the Zenith Live 2025 event, Zscaler launched Zero Trust Gateway for Cloud Workloads. It is a cloud-native service on Amazon Web Services (“AWS”) that secures workload communications in under 10 minutes without deploying agents or virtual machines. It also introduced Zscaler Microsegmentation for Cloud Workloads. This extends Zscaler’s Artificial Intelligence (AI) driven segmentation to cloud workloads with its newly introduced host-based microsegmentation service. The solution aims to provide granular host and process-level segmentation policies using Zsacler’s AI-powered segmentation engine for workloads in public clouds, such as AWS and Microsoft Azure.If adoption sustains this pace, Zero Trust Everywhere could become a foundational layer in Zscaler’s next phase of platform-led growth. Zscaler appears well-positioned to turn Zero Trust Everywhere into a long-term driver of enterprise growth.How Competitors Fare Against ZSPalo Alto Networks PANW and SentinelOne S are also evolving their platforms to meet enterprise security demands.Palo Alto Networks is doubling down on its platformization strategy. In the third quarter of fiscal 2025, PANW closed more than 90 net new platform deals. Moreover, the number of customers platformized on Cortex was up nearly three times, reflecting strong momentum with Palo Alto Networks’ Extended Security Intelligence and Automation Management or XSIAM security operation platform.Though comparatively a small competitor, SentinelOne posted year-over-year growth of 24% in its annual recurring revenues. The growth was fueled by the rising adoption of SentinelOne’s AI-first Singularity platform and Purple AI.ZS’s Price Performance, Valuation and EstimatesShares of Zscaler have surged 73% year to date compared with the Security industry’s growth of 22.7%.ZS YTD Price Return PerformanceImage Source: Zacks Investment ResearchFrom a valuation standpoint, Zscaler trades at a forward price-to-sales ratio of 15.34X, slightly higher than the industry’s average of 14.79X.ZS Forward 12-Month P/S RatioImage Source: Zacks Investment ResearchThe Zacks Consensus Estimate for Zscaler’s fiscal 2025 earnings implies a year-over-year decline of 0.31%, while for fiscal 2026 earnings implies year-over-year growth of 12.01%. The earnings estimates for fiscal 2025 and fiscal 2026 have been revised upward in the past 30 days and seven days, respectively. Image Source: Zacks Investment ResearchZscaler currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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 Palo Alto Networks, Inc. (PANW): Free Stock Analysis Report Zscaler, Inc. (ZS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks