Zscaler Boosts Growth Potential with Red Canary Acquisition

Zscaler (ZS) is set to finalize the acquisition of Red Canary in August 2025, aiming to enhance its MDR and SecOps capabilities. With Red Canary’s 99.6% detection accuracy, Zscaler’s SecOps ACV grew 120% in Q3 FY25, positioning MDR as a key growth pillar for the company. This move aligns with Zscaler’s goal of creating an AI-powered SOC. Competitors like Palo Alto Networks and CrowdStrike are also advancing in the SecOps space with AI-driven platforms. Zscaler’s stock has seen a 73.2% YTD increase, trading at a forward P/S ratio of 15.58X. Earnings estimates show a decline in FY25 and growth in FY26.

Read more at Zacks Investment Research: ZS Expands Into MDR With Red Canary: Is it the Next Growth Pillar? – July 9, 2025