Better Cybersecurity Stock: Okta vs. Zscaler
Better Cybersecurity Stock: Okta vs. Zscaler
https://www.fool.com/investing/2026/03/21/better-cybersecurity-stock-okta-vs-zscaler/
Publish Date: 2026-03-21 22:52:00
Source Domain: www.fool.com
If you spend your workdays in front of a computer, there’s a solid chance you’re required to keep your company safe from bad actors through either Okta (OKTA 2.91%) or Zscaler (ZS 2.53%). Both cybersecurity businesses are pure-play leaders in a growing market. They technically serve different niches, but which one is the stronger long-term investment?
Is Okta undervalued?
At the beginning of March, Okta released its full results for the 2026 fiscal year. The cybersecurity company saw a 12% year-over-year increase in revenue. Subscriptions reached nearly $3 billion. Okta also turned operating income from a net loss to a net gain in its latest fiscal year.
Okta’s guidance for 2027 is solid, but it shows a declining growth rate, with only 9% revenue growth expected in the coming year. Where remaining performance obligations (RPOs) grew 15% in fiscal 2026, Okta expects that growth to slow to 10% in fiscal 2027.
Image source: Getty Images.
The numbers are positive, but there’s a real slowdown happening with Okta’s revenue. The stock has dropped 30% in the past 12 months. This drawdown potentially makes Okta undervalued right now. The company is facing headwinds as artificial intelligence (AI) poses a significant threat, yet it continues to grow and maintains a strong industry position.
Today’s Change
(-2.91%) $-2.35
Current Price
$78.41
Key Data Points
Market Cap
$14B
Day’s Range
$78.19 – $80.36
52wk Range
$68.77 – $127.57
Volume
6.6M
Avg Vol
3M
Gross Margin
77.36%
Zscaler’s impressive growth
Zscaler’s stock is also down over 20% in the past year, but the company’s financials are quite promising. In the second quarter of fiscal 2026, Zscaler reported revenue of $815.8 million, an impressive 26% year-over-year increase. Annual recurring revenue also grew 25% to $3.3 billion.
Zscaler revised its full-year 2026 guidance upward and now expects 24% revenue growth. The company’s stock is still trading at a premium, as its forward P/E ratio sits above 40. Yet, the decline in the…
