Zscaler, Inc.

Zscaler, Inc.

ZSInfrastructure

Zscaler is a cloud security company that built a zero-trust platform to secure users, workloads, IoT devices, and business-to-business connections.

Key figures

Data as of Apr 2026 · Pills compare vs Jan 2026
ARR Multiple
6.2x
-3.6x
ARR
$3.4B
+4.3%
YoY Growth
25.4%
-0.5pp
Market Cap
$21.1B
-34.2%
Revenue (Q)
$850M
+4.3%
Gross Margin
77.3%
+0.8pp
Op. Margin
-3.5%
+2.6pp
Rule of 40
21.9
+2.1
Magic Number
0.38
+0.08

Revenue, margins & ratios from SEC filings; market cap & ARR multiple from market data.

AI Replacement Risk
9/ 100
LowHigh

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Valuation by quarter

Current ARR Multiple: 6.2x

Calculated valuation

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Valuation data is not available for this company.

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Company overview

Zscaler is a cloud security company that built a zero-trust platform to secure users, workloads, IoT devices, and business-to-business connections. Jay Chaudhry founded it in 2008 in San Jose, California. Zscaler pioneered the idea of delivering security from the cloud rather than through on-premises hardware, fundamentally changing how enterprise network security works.

The core platform, the Zero Trust Exchange, processes over 400 billion transactions per day across 150+ data centers worldwide. Instead of routing traffic through corporate firewalls and VPNs, Zscaler acts as an inline cloud proxy between users and applications. It inspects all traffic in real time to enforce security policies. This eliminates the need for traditional VPN appliances, web gateways, and firewall stacks.

Zscaler Internet Access secures internet-bound traffic regardless of location. It provides secure web gateway, cloud firewall, DNS security, cloud access security broker, and data loss prevention. Zscaler Private Access replaces legacy VPNs by connecting users directly to specific applications without exposing the underlying network. Zscaler Digital Experience monitors end-to-end user experience quality across SaaS apps, networks, and devices.

Zscaler for Workloads secures cloud-to-cloud communications. Zscaler Deception deploys decoys to catch threats that evade other controls. Data protection includes cloud DLP, exact data matching, and AI-powered classification.

The target market is mid-to-large enterprises and government organizations going through digital transformation and cloud migration. Large deal activity has picked up as organizations consolidate multiple security tools onto the Zscaler platform.

Annual revenue is roughly $2.3 billion with gross margins around 78%. Revenue is subscription-based with high visibility. Net revenue retention exceeds 120%. Operating margins are improving as the company reaches scale.

AI features leverage the massive dataset of security signals. Capabilities include phishing detection, browser isolation, risk scoring, and policy recommendations. Acquisitions of Avalor for risk management and Airgap Networks for network segmentation have expanded the security intelligence toolkit.

With about 7,000 employees and a position as the dominant cloud-delivered security platform, Zscaler is the architectural backbone for enterprise zero-trust transformation.

Entity information

Industry7371: Services-Computer Programming Services
Fiscal YearJul 31
IncorporatedDelaware
Phone(408) 533-0288
Address120 HOLGER WAY, SAN JOSE, CA, 95134
Mailing address120 HOLGER WAY, SAN JOSE, CA, 95134
EIN26-1173892
Entity typeoperating
SEC industry framework06 Technology

Quarterly financials

Left axis in $ (Revenue, Gross profit, Net income, S&M); right axis for ratios (Rule of 40, Magic number). Click a legend item to toggle it.

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