Zscaler Inc (ZS) Financial Analysis — Fisclear

Valuation

IT Services

Live · Yahoo Finance

Price

$164.54

52-Week Range

$114.63$164.54 now$336.99

Decision Context

Altman Z-Score indicates financial distress risk. Review debt levels and cash runway before any position sizing decision.

Based on filing period ending Jul 2026

FisclearScore is a quantitative model using public financial data and sector median benchmarks (refreshed monthly). Not financial advice. Always conduct independent due diligence.

ZS vs

Macro Context

Fed Funds Rate

3.63%

Accommodative

10-Year Treasury

4.68%

2026-08-01

Unemployment

4.1%

Near full employment

CPI Index

332.8

2026-07-01

M2 Money Supply

$23.2T

2026-07-01

The Federal Funds rate stands at 3.63% — a moderately elevated rate environment that raises borrowing costs across the economy; 10-year Treasury yields are at 4.68%, setting the benchmark for long-term corporate borrowing; Unemployment stands at 4.1%; Industrial production index is at 103.0; M2 money supply is $23.2T; CPI index stands at 332.8.

SWOT Analysis — ZS

Inflationary Boom

Macro lens (Inflationary Boom): Rising costs and tighter margins amplify financial risks in this regime.

✦

Strengths

Revenue: $3.4B (+25.4% YoY) — Revenue grew 25% — the company sold more goods or services than the prior year.
Gross Profit: $2.6B (+25.3% YoY) — Gross profit rose 25% — the spread between revenue and direct costs improved.
Total Assets: $7.9B (+22.5% YoY) — Total assets grew 23% — the company's resource base expanded.

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Weaknesses

Net Income: -$63.2M (-52.3% YoY) — The company posted a net loss — total expenses exceeded total revenue.
EPS (Diluted): $-0.39 (-44.4% YoY) — Negative EPS — the company recorded a loss on a per-share basis.
R&D spending is 27% of revenue — heavy investment in future growth, but also a drag on current profitability.

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Opportunities

No clear opportunities identified at this time.

⚠

Threats

Net loss of $63.2M — the company spent more than it earned. Investors should monitor the path to profitability.

Financial Charts

Revenue vs Net Income

Gross Profit vs Operating Income

Margin Trend

Operating Cash Flow

Quarter-over-Quarter Comparison

2026-04-30 → 2026-07-31

Metric	2026-04-30	2026-07-31	Change
Revenue	$2.7B	$3.4B	▲25.4%
Gross Profit	$2.1B	$2.6B	▲25.3%
Operating Income	$-128M	$-133M	▼3.7%
Net Income	$-41M	$-63M	▼52.3%
EPS (diluted)	$-0.27	$-0.39	▼44.4%
Operating CF	$972M	$1.1B	▲16.2%

Risk factor changes vs prior filing

NEW

Net loss of $63.2M — the company spent more than it earned. Investors should monitor the path to profitability.

NEW

R&D spending is 27% of revenue — heavy investment in future growth, but also a drag on current profitability.

REMOVED

Net loss of $41.5M — the company spent more than it earned. Investors should monitor the path to profitability.

REMOVED

R&D spending is 25% of revenue — heavy investment in future growth, but also a drag on current profitability.

Year-over-Year Changes

Net Income

-$63.2M

was -$41.5M

−52.3%

The company posted a net loss — total expenses exceeded total revenue.

EPS (Diluted)

$-0.39

was $-0.27

−44.4%

Negative EPS — the company recorded a loss on a per-share basis.

Revenue

$3.4B

was $2.7B

+25.4%

Revenue grew 25% — the company sold more goods or services than the prior year.

Gross Profit

$2.6B

was $2.1B

+25.3%

Gross profit rose 25% — the spread between revenue and direct costs improved.

Total Assets

$7.9B

was $6.4B

+22.5%

Total assets grew 23% — the company's resource base expanded.

Risk Flags

1 high · 0 medium · 1 low

⚠ High
Net loss of $63.2M — the company spent more than it earned. Investors should monitor the path to profitability.
○ Low
R&D spending is 27% of revenue — heavy investment in future growth, but also a drag on current profitability.