Zscaler vs. Fortinet: Which Cybersecurity Stock Is the Better Buy?
Zscaler vs. Fortinet: Which Cybersecurity Stock Is the Better Buy?
Publish Date: 2026-05-19 10:46:00
Source Domain: www.theglobeandmail.com
Zscaler, Inc.ZS and Fortinet, Inc.FTNT are among the biggest beneficiaries of the growing need for cloud and network security as enterprises accelerate artificial intelligence (AI) adoption and digital transformation.
Both companies are gaining from the rising popularity of zero-trust security and SASE architectures, but they approach the market differently. Zscaler focuses on a cloud-native zero-trust platform, while Fortinet combines firewall dominance with integrated networking and security offerings.
As enterprises increase spending to secure AI workloads, cloud applications and distributed networks, investors might be wondering which stock offers the stronger long-term opportunity at current levels.
The Case for Zscaler Stock
Zscaler continues to strengthen its position as a leading zero-trust cybersecurity provider. The company delivered solid fiscal second-quarter 2026 results, with revenues rising nearly 26% year over year to $815.8 million, and non-GAAP earnings per share (EPS) soaring 29.5% to $1.01. The company also reported strong demand for AI-security offerings, Zero Trust Everywhere and Data Security Everywhere solutions and led annual recurring revenues, climbing 25% year over year to $3.4 billion.
During the last earnings release, management noted that AI adoption is significantly expanding cybersecurity demand because enterprises need to secure AI agents, applications and machine-to-machine communication. Zscaler’s Zero Trust Exchange platform is emerging as a key differentiator. The company processed nearly 1 trillion AI transactions in calendar year 2025 and highlighted rapid growth in AI Protect solutions.
Zscaler is also seeing healthy customer expansion. The number of “Zero Trust Everywhere” enterprise customers increased to more than 550 from around 130 a year ago. The company continues to win large deals from financial services, semiconductor and retail customers, showing that enterprises are increasingly replacing traditional…
