Zscaler, Inc. (NASDAQ: ZS) has been one of the market’s strongest cybersecurity growth stories. After a powerful rebound, the stock now trades near $300/share, up more than 75% in the past year. Rising enterprise demand for zero-trust security, expanding margins, and strong revenue momentum have fueled the surge. But with the stock valued at a steep premium and competition heating up, analysts remain divided on what comes next.
Recently, Zscaler (NASDAQ: ZS) reported Q4 2025 revenue of $719 million, up 21% year-over-year, with calculated billings climbing 32% to $1.2 billion and free cash flow reaching $172 million. The company also guided fiscal 2026 ARR to $3.68 billion. In addition, it was recognized as a Leader in the Forrester Wave for SASE solutions (Q3 2025), underscoring its strong positioning in cloud-native security. These updates highlight Zscaler’s continued growth momentum and reinforce why investors are closely watching its long-term potential.
This article explores where Wall Street analysts think Zscaler could trade by 2028. We have reviewed consensus targets, growth forecasts, and valuation models to outline the stock’s potential trajectory. These figures reflect current analyst expectations and are not TIKR’s own predictions.
Unlock our Free Report: 5 AI compounders that analysts believe are undervalued and could deliver years of outperformance with accelerating AI adoption (Sign up for TIKR, it’s free) >>>
Analyst Price Targets Suggest Moderate Upside
Zscaler trades at about $300/share today. The average analyst price target is $324, which points to around 8% upside. Forecasts show a wide spread and reflect divided sentiment:
- High estimate: ~$385/share
- Low estimate: ~$215/share
- Median target: ~$330/share
- Ratings: 28 Buys, 8 Outperforms, 16 Holds, 1 Sell
It looks like analysts see some room for gains, but the broad range of targets suggests conviction is weak. The takeaway is that expectations are already high, and Zscaler may need to deliver stronger-than-expected growth to break meaningfully above current levels.
For investors, this means the stock offers potential upside but with significant uncertainty. The limited near-term gains may not fully compensate for the risks of owning a premium-priced stock in a highly competitive industry.
See analysts’ growth forecasts and price targets for Zscaler (It’s free!) >>>
Zscaler: Growth Outlook and Valuation
Zscaler’s financial outlook points to steady expansion and improving profitability:
- Revenue projected to grow about 21% annually through mid-2028
- Operating margins expected to reach 24%
- Shares valued at roughly 72x forward earnings
- Based on analysts’ average estimates, TIKR’s Guided Valuation Model points to ~$444/share by 2028
- That implies about 48% total upside, or roughly 15% annualized returns
These projections show Zscaler remains a high-growth leader transitioning toward greater efficiency. Profitability is set to rise as the company scales, and valuation assumptions appear reasonable if management sustains its current growth trajectory. For investors, Zscaler offers an attractive long-term opportunity with solid upside potential backed by expanding margins and recurring revenue strength.
Value stocks like Zscaler in as little as 60 seconds with TIKR (It’s free) >>>
What’s Driving the Optimism?
Zscaler continues to stand out as one of the fastest-growing cybersecurity platforms. The shift toward zero-trust architecture has driven more enterprises to replace legacy systems with Zscaler’s cloud-based solutions. This transition supports recurring revenue growth and deepens customer stickiness.
Profitability is also improving as the business scales. Strong gross margins, expanding cash flow, and a growing base of large enterprise customers signal that the company’s platform model is gaining operating leverage. Zscaler’s ability to cross-sell new services and retain top-tier clients reinforces its leadership in cloud security.
Together, these factors suggest Zscaler can keep growing efficiently while defending its valuation premium in a competitive sector.
Bear Case: Valuation and Competition
Even with its strong execution, Zscaler’s valuation leaves little room for error. The stock trades at a premium to most peers, meaning any slowdown in growth or margins could quickly pressure the share price.
Competition remains a key risk. Rivals like Palo Alto Networks, CrowdStrike, and Microsoft are all investing heavily in zero-trust and cloud security, making it harder for Zscaler to sustain its market share. A weaker macro environment or slower enterprise spending could further challenge its growth outlook.
For investors, the bear case centers on execution risk. The company’s valuation already reflects high expectations, and any stumble in maintaining growth or profitability could lead to meaningful volatility.
Outlook for 2028: What Could Zscaler Be Worth?
Based on analysts’ average estimates, TIKR’s Guided Valuation Model suggests ~$444/share by 2028. That would represent about a 48% gain from today’s level, or roughly 15% annualized returns. The outcome assumes revenue growth around 21% annually and margin expansion toward the mid-20s.
While this would mark strong performance, the scenario already builds in a high degree of optimism. To deliver greater upside, Zscaler would need to beat expectations with faster enterprise adoption or stronger monetization of new products like AI-driven security tools. Without that, returns may be steady but not spectacular.
For investors, Zscaler looks like a compelling long-term growth story, but the path to outsized gains depends on the company continuing to outperform already ambitious forecasts. Patience and tolerance for volatility may be key for those considering an investment.
AI Compounders With Massive Upside That Wall Street Is Overlooking
Everyone wants to cash in on AI. But while the crowd chases the obvious names benefiting from AI like NVIDIA, AMD, or Taiwan Semiconductor, the real opportunity may lie on the AI application layer where a handful of compounders are quietly embedding AI into products people already use every day.
TIKR just released a new free report on 5 undervalued compounders that analysts believe could deliver years of outperformance as AI adoption accelerates.
Inside the report, you’ll find:
- Businesses already turning AI into revenue and earnings growth
- Stocks trading below fair value despite strong analyst forecasts
- Unique picks most investors haven’t even considered
If you want to catch the next wave of AI winners, this report is a must-read.
Click here to sign up for TIKR and get your free copy of TIKR’s 5 AI Compounders report today.
