Yahoo Finance analysis: Zscaler's growth engine remains strong, but slowing ARR growth could pressure the stock
Yahoo Finance analysis indicates that Zscaler's growth engine remains healthy, driven by innovation and platform adoption, as evidenced by its solid fourth-quarter and fiscal 2026 results released on September 3. FBN Securities reiterated an Outperform rating on September 4, raising the price target to $190 from $175. However, the company's fiscal 2027 ARR guidance, implying 16.6% to 17.4% growth, suggests a potential slowdown, which could lead to a lower market multiple and stock re-rating. Zscaler reported Q4 revenue up 25% year-over-year to $898.2 million, and ARR up 25% to $3.77 billion. Non-GAAP operating margin reached a record 24% in Q4.
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