Updated Aug 13 at 5:05pm ET.
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Gartner, a firm that researches and grades technology providers, named Zscaler a leader in its 2026 reports for both SASE and Security Service Edge. These categories describe how companies secure their employees' connections to the internet and private apps without using old-fashioned office networks.
While these rankings are common for established players, they matter because large corporate IT departments often use them to decide which vendors to trust. Staying at the top of these lists helps Zscaler win new large accounts and keep its current customers from switching to rivals.
Source: GlobeNewsWire
Zscaler is teaming up with Schwarz Digits, the IT arm of the group behind Lidl, to combine its security platform with a European-owned cloud service called STACKIT. This setup is designed to meet strict European rules about where data is stored and who can see it, a concept known as data sovereignty.
This is a smart move for growth in Europe. Many government agencies and large companies there are hesitant to use American cloud providers due to privacy concerns. By offering a version that keeps data on European soil, Zscaler can reach customers that were previously off-limits.
Source: GlobeNewsWire
KeyBanc raised its price target for Zscaler from $176 to $185 while keeping its overweight rating, which is a recommendation to own more of the stock than average. This new target is about 14 percent higher than the current price. Analysts often adjust these targets based on how they think a company will perform in the coming months. This move suggests KeyBanc sees the company's cloud security business continuing to win over large customers despite a competitive market.
Source: KeyBanc
Analysts recently issued a flurry of rating updates and price target cuts throughout late May and June. Most analysts remain bullish with 42 of 53 rating the stock a buy, though the average target of $191 is roughly fair.
The company has a perfect record of beating expectations over the last two years, usually by a wide margin. This suggests management is excellent at under-promising and over-delivering.
| Expectation | |
|---|---|
| EPS | $1.09 |
| Revenue | $877M |
