Zscaler (ZS) Valuation Reset After Tariff And AI Jitters In Cybersecurity Sector
Zscaler (ZS) Valuation Reset After Tariff And AI Jitters In Cybersecurity Sector
Publish Date: 2026-02-25 06:43:00
Source Domain: simplywall.st
Zscaler (ZS) has been caught up in a wider tech sell-off after the White House floated a move to lift global tariffs to 15%, with investors also reevaluating cybersecurity stocks in light of rapid AI advances.
See our latest analysis for Zscaler.
At a share price of US$149.36, Zscaler’s recent moves have been sharp, with a 1 day share price return of 4.24% coming after a 30 day share price return of a 28.75% decline and a year to date share price return of a 32.28% decline. The 1 year total shareholder return of a 22.63% decline contrasts with a 3 year total shareholder return of 13.88%, suggesting shorter term momentum has weakened even as longer term holders still sit on gains overall.
If AI driven security and tariff headlines have you reassessing the sector, it could be worth scanning 33 AI infrastructure stocks as a way to find other companies exposed to the build out behind these trends.
With Zscaler trading around US$149.36, roughly 49% below one estimate of intrinsic value and at a steep discount to the current analyst price target, investors may need to consider whether this represents a reset opportunity or whether the market is already factoring in future growth.
Most Popular Narrative: 13.5% Undervalued
According to one widely followed narrative, Zscaler’s fair value sits at $172.68, compared with the last close of $149.36, putting its current reset in a different light.
Zscaler is revolutionizing cloud security with the industry’s first Security as a Service platform. Their solutions are used by more than 5,000 leading organizations, including 50 of the Fortune 500. Key products and services include Zscaler Zero Trust Exchange, Secure Web Gateways, Zero Trust Network Access, Cloud Application Security Broker, and Secure Access Service Edge. Zscaler also offers professional services to accelerate digital transformation and enhance security.
Read the complete narrative.
Want to see what is sitting behind that valuation gap? The narrative leans…
