NEW YORK, July 4, 2026, 18:04 (EDT)
- Zscaler gained 11.4% over four active U.S. sessions. Invesco QQQ Trust was up 0.9% in the same stretch.
- Nasdaq stayed closed on July 3 for Independence Day observed. U.S. equity markets reopen for trading Monday.
- Zscaler’s market cap stands at $23.68 billion, putting the stock at roughly 6.3x the mid-range of its 2026 ARR target.
U.S. stock trading is paused for the July 4 weekend, with Nasdaq marking Friday, July 3, as closed for Independence Day observed. Normally, Nasdaq runs from 9:30 a.m. to 4 p.m. Eastern, Monday to Friday.
Zscaler, Inc. NASDAQ:ZS finished Thursday at $147.33, gaining 0.6%. Around 2.56 million shares changed hands, less than the 3.69 million shares on July 1 and 3.26 million on June 29, according to .
Zscaler outperformed the Nasdaq-100 by over 10 percentage points from June 26 to July 2, as cloud-security stocks faced a holiday test. Still, it didn’t catch Palo Alto Networks, Inc. NASDAQ:PANW, which was the top name in the group.
| Stock/ETF | June 26 close | July 2 close | Move | July 2 volume |
|---|---|---|---|---|
| Zscaler, Inc. NASDAQ:ZS | $132.26 | $147.33 | up 11.4% | 2.56 million |
| Palo Alto Networks, Inc. NASDAQ:PANW | $304.20 | $348.06 | gained 14.4% | 7.70 million |
| CrowdStrike Holdings, Inc. NASDAQ:CRWD | $175.27 | $193.98 | rose 10.7% | 10.43 million |
| Fortinet, Inc. NASDAQ:FTNT | $151.35 | $156.25 | added 3.2% | 4.49 million |
| Invesco QQQ Trust NASDAQ:QQQ | $706.52 | $712.60 | up 0.9% | 51.09 million |
This matters as Zscaler is trading on a revenue multiple, not last quarter’s numbers alone. Zscaler is valued at $23.68 billion now. The company forecasted ARR for fiscal 2026 between $3.740 billion and $3.749 billion, with revenue seen at $3.3295 billion to $3.3325 billion.
| Valuation base | Input used | Implied multiple |
|---|---|---|
| Market cap over FY26 ARR midpoint guide | $23.68 bln on $3.7445 bln | 6.3x |
| Market cap over FY26 revenue midpoint guide | $23.68 bln on $3.331 bln | 7.1x |
| Enterprise value to FY26 ARR midpoint guide | $21.84 bln and $3.7445 bln | 5.8x |
| Enterprise value to FY26 revenue midpoint guide | $21.84 bln on $3.331 bln | 6.6x |
Some of Zscaler’s own numbers may give investors pause. The company said fiscal Q3 revenue climbed 25% to $850.5 million. Annual recurring revenue was up 25% at $3.525 billion. Without Red Canary, ARR was up 21% and net new ARR up 14%. Zscaler, Inc. Zscaler’s shareholder materials showed it finished Q3 with 748 customers paying over $1 million in ARR, 4,003 customers above $100,000 and about $6.5 billion in remaining performance obligations.
Zscaler CEO Jay Chaudhry said the company’s setup “hides applications from attackers,” linking it to risks around AI agents and new models. CFO Kevin Rubin called out “record profitability,” saying non-GAAP operating margin hit a new peak at 23%. Zscaler, Inc.
Pushback is still there. Evercore ISI downgraded Zscaler to In Line from Outperform and dropped its price target to $155 from $225 after the May report. The firm cited changes in the sales leadership and a softer fiscal 2027 outlook. Management set guidance for fiscal 2027 ARR and revenue growth at 16%-17%, which came in below consensus of 18.6% and 19.5%.
Wedbush’s Dan Ives said Zscaler needs to “show better execution” to get out of what he called the investor penalty box. Andrew DeGasperi at BNP Paribas said the outlook was “clearly designed to reset expectations,” according to MarketWatch after the May results. MarketWatch
Stocks were mixed before the long weekend. Reuters said the Dow ended up 1.1% at a record close Thursday, the S&P 500 ended flat, and the Nasdaq Composite dropped 0.8% on weakness in chip names. The Nasdaq still finished the week up 2.1%. That’s well behind Zscaler’s 11.4% four-day gain.
Zscaler traded in a narrow range after the holiday. The stock hit $149.58 on July 1, up 1.5% from the prior close. The low on Thursday was $145.00, 1.6% under the last close.
