May. 26 at 6:53 PM
$ZS Revenue is growing 26% year-over-year, trailing 12-month revenues are expected to hit
$3.32 billion, and free cash flow margins are running at roughly 27%. With ~
$1 billion in NTM free cash flow and nearly 24% expected YoY FCF growth, this may well become a cash compounding machine, and the
$1.7 billion in net cash means no lurking balance sheet land mines. The Zero Trust Exchange platform is the linchpin for AI security, and that’s not marketing language — it’s architecture. When every enterprise AI agent needs a secure, inspectable pathway to cloud resources, Zscaler’s inline proxy model is structurally positioned in a way that legacy firewall vendors simply cannot replicate. Palo Alto and Fortinet are retrofitting on-premise mindsets onto a cloud-native problem. ZS was born in the cloud, which is one reason why this is a SaaS business that can succeed in an AI world.
