Zscaler: AI Tailwinds Appear To Be Mostly Priced In

Zscaler is rated 'Hold' due to a diminished margin of safety and reliance on an upside scenario for market-beating returns. Management targets 17–22% revenue CAGR to FY2031, driven by AI tailwinds and new product expansion, but faces near-term growth deceleration. ZS's platform expansion into SASE, Data Security, and Security for AI offers upsell and new logo opportunities, yet competition and high SBC remain key risks.