What changed
$ZS — HOLD 📊 | 6 MONTHS THESIS
🧭 Conviction: MED
Zscaler, Inc. operates as a cloud security company worldwide.
🎯 FQ3 FY2026 (ends Apr) | reported May 26 | Rev $850M | EPS $1.08 vs $1.01 🟢 | Margin -3.5%
💡 The consensus already expects 30%+ revenue growth, and the EPS beat was modest. The market may be overlooking that GAAP profitability is still distant, and any deceleration would compress the multiple. No clear variant view justifies a long here.
🏢 Business Quality: 7/10
📊 Valuation: fair — 31.9x trailing non-GAAP P/E, 28–35x range given peer SaaS multiples, with no discount for negative GAAP margins
🔮 Catalyst: Q4 FY2026 earnings report (est. September 2026)
⚖️ Hold or watchlist: ZS delivers steady beats but lacks a catalyst for re-rating; wait for a pullback below $125 or clear signs of accelerating growth before adding.
📊 Our read: HOLD. Full analysis →
https://stockduty.xyz/s/ZS0630
Also in play: $NVDA $AAPL $MSFT $AVGO $MU