Zscaler (ZS) Stock Forecast: What Could Drive It in 2026
Short answer
No one can reliably forecast ZS's price, and Walnut does not publish targets. What is useful is the setup. For Zscaler, the drivers that could push it higher are real, and so are the risks that could weigh on it. Below is each side plus a framework to form your own view. This is descriptive, not a prediction or a recommendation.
What could drive Zscaler (ZS) higher?
1. Zero trust replacing legacy perimeter.
The structural tailwind is the shift away from castle-and-moat network security (firewalls and VPNs) toward zero trust, where every connection is verified. Hybrid work and SaaS adoption broke the old perimeter model, and Zscaler is a category leader positioned to displace legacy appliance vendors as enterprises modernize.
2. Platform expansion and upsell.
Zscaler started with secure internet access but has added private access, data loss prevention, cloud posture management, and AI analytics. This expands the addressable spend per customer and lifts net revenue retention, since existing customers buy more modules over time without a new sales cycle.
3. Large enterprise and government traction.
Zscaler has won large multinational and federal customers, including FedRAMP-authorized deployments. Big enterprises generate large, sticky contracts and many seats, and government wins validate the platform for security-sensitive buyers, supporting a long expansion runway in regulated sectors.
4. AI as both feature and demand driver.
Zscaler positions AI two ways: securing enterprise use of generative AI tools and applying AI to its own threat detection across the traffic it inspects. Its huge daily transaction volume is a data advantage for training detection models, a differentiator versus appliance-based competitors.
What could weigh on ZS?
Zscaler trades at a high revenue multiple, so any deceleration in growth or billings can compress the stock sharply. Competition is intensifying: Palo Alto Networks, Cisco, Cloudflare, and Microsoft all push secure access service edge (SASE) offerings, and Microsoft can bundle security into existing enterprise agreements at aggressive prices. Sales cycles for large deals can lengthen in tighter IT budget environments. The company has historically run GAAP losses due to heavy stock-based compensation, which dilutes shareholders even as free cash flow is positive. Founder-CEO concentration and a premium valuation amplify volatility around quarterly results.
How to think about a ZS forecast
Rather than chasing a price target, it tends to help to weigh the drivers above against the risks, decide how long you are willing to hold, and size the position so a wrong call is survivable. A “forecast” is really a probability-weighted view of those drivers playing out, not a number.
For the full picture, see the ZS guide and whether ZS is a buy. In Walnut you can pressure-test the thesis against your real portfolio.
The bottom line on the ZS outlook
The honest bottom line: Zscaler (ZS)'s outlook hinges on whether its drivers (above) outpace its risks, and no one can promise which wins. Treat any ZS forecast as a scenario, not a certainty, and decide from your own thesis and time horizon. Walnut is not an investment adviser.
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FAQ
What is the forecast for Zscaler (ZS)?
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No one can reliably predict where ZS will trade, and Walnut does not publish price targets. What is more useful is the setup: the drivers that could push Zscaler higher and the risks that could weigh on it. This page lays out both so you can form your own view. Not a recommendation.
What could drive ZS higher?
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The main growth drivers are Zero trust replacing legacy perimeter; Platform expansion and upsell; Large enterprise and government traction. Whether they play out is the real question, not a guaranteed path.
What are the risks to ZS?
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Zscaler trades at a high revenue multiple, so any deceleration in growth or billings can compress the stock sharply. Competition is intensifying: Palo Alto Networks, Cisco, Cloudflare, and Microsoft all push secure access service edge (SASE) offerings, and Microsoft can bundle security into existing enterprise agreements at aggressive prices. Sales cycles for large deals can lengthen in tighter IT budget environments. The company has historically run GAAP losses due to heavy stock-based compensation, which dilutes shareholders even as free cash flow is positive. Founder-CEO concentration and a premium valuation amplify volatility around quarterly results.
Will ZS stock go up in 2026?
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Nobody knows, and anyone who says they do is guessing. Zscaler's direction depends on whether the drivers above outweigh the risks, plus the broader market. Focus on the thesis and your time horizon rather than a single-year call.
Is ZS a buy?
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That depends on your thesis, time horizon, and what you already own, not on a forecast. See the ZS "is it a buy?" page for a framework. Walnut is not an investment adviser.
Walnut is informational, not investment advice. This page describes drivers and risks; it is not a price forecast, target, or recommendation. Markets are uncertain and past performance does not predict future results.