From Zacks Investment Research: 2025-06-17 12:26:00

In Q3 FY25, Zscaler (ZS) expanded its data security capabilities to cover web, email, SaaS, endpoints, and GenAI apps. A Fortune 50 auto firm increased its spending by 50% after adopting six of ZS’ eight data security modules. ZS also secured a seven-figure deal with a Fortune 100 food and beverage company. Zscaler’s Data Security Everywhere strategy is gaining momentum as the need for data security extends beyond regulated industries, driven by the growth of GenAI and security-as-a-service (SaaS) usage.

Competitors like Palo Alto Networks (PANW) and CrowdStrike (CRWD) are also evolving their platforms to meet enterprise security demands. PANW highlighted growing traction for Prisma Access Browser, while CRWD is leveraging Charlotte AI for automated cybersecurity. Zscaler’s stock has surged 69.1% year to date, outperforming the Security industry’s growth of 20.2%. ZS trades at a forward price-to-sales ratio of 15.1X and has a Zacks Rank #3 (Hold) with positive earnings estimates for fiscal 2025 and 2026.



Read more at Zacks Investment Research: Will GenAI and SaaS Adoption Fuel Zscaler’s Data Security Expansion? – June 17, 2025