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Stock impact report

Zscaler: Growth Pillars Are Accelerating Despite KPI Noise [Seeking Alpha]

Zscaler, Inc. (ZS) 
Last zscaler, inc. earnings: 2/20 04:05 pm Check Earnings Report
Company Research Source: Seeking Alpha
Growth is intact, with ARR reaching $3.2B (+26% YoY) in Q1 FY26, and FY26 ARR guidance was raised. AI security is a standout segment: it grew 80% YoY, and management targets $500M ARR by FY26 year-end, about 13.5% of the consolidated FY26 ARR midpoint. Data Security Everywhere ended the quarter at $450M ARR, and Zero Trust Everywhere adoption hit 450 enterprises three quarters ahead of plan. In my view, two negatives pressure sentiment: the Red Canary deal booked $544.5M goodwill on a $675M price, and management is discontinuing DBNRR starting Q2 FY26 after a multi-year downtrend. Overall, I believe the pessimism is mostly priced in, and I expect shares to consolidate around $220 before the next run. Sundry Photography/iStock Editorial via Getty Images I initiate coverage on Zscaler, Inc. ( ZS ) with a buy rating after a steep post-Q1 FY26 earnings drawdown that, in my view, seems to be disconnected from the company's fundamentals. The growth story This article was wri Show less Read more
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