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Zscaler helps enterprises and government agencies secure access to the internet and their private applications. Its Zero Trust Exchange checks identity, device security and company policies before connecting users, devices and AI agents to authorized applications and data, rather than giving them access to the corporate network. It also offers data protection and security for AI systems.
Subscriptions to the platform and related support provide almost all revenue. Customers pay mainly according to user counts and metered usage, typically with annual advance billing. Zscaler expands customer spending by adding users and services or upgrading subscriptions. Most sales pass through channel partners that work with Zscaler’s sales teams, although Zscaler generally signs subscription agreements with the end customers. Its largest partners account for a substantial share of revenue, while no single end customer dominates.
The business depends on customers renewing and expanding subscriptions, partners continuing to sell the platform, and the service remaining continuously available. Cross-border data-transfer and data-residency rules constrain global service delivery, while export controls and sanctions can bar service to certain customers or locations.
The risk section is the longest, dullest part of the filing. This keeps only what can really hurt you: where it hits, how hard, when it plays out.
Every company claims an edge. Each one is checked against hard numbers like margins and returns: which hold, and which line gives way first.
Zscaler’s results hinge on enterprises adopting cloud-delivered zero-trust security, where privately held Cato Networks is another rival to watch.
Netskope, Inc. competes directly with Zscaler for enterprises’ subscriptions to cloud platforms that secure access to applications and data. Its Netskope One subscription revenue is the line to watch for demand in this market.
Palo Alto Networks and Zscaler compete for enterprise security budgets by combining multiple protections in integrated platforms. Watch Palo Alto Networks’ progress replacing customers’ separate security products—the same consolidation approach underpins Zscaler’s pitch.
Fortinet competes with Zscaler for enterprise deployments through services that combine networking with secure access, known as unified SASE, and tools for detecting and responding to threats. Those offerings, rather than Fortinet’s hardware business alone, are the ones to watch against Zscaler’s cloud security platform.
Check Point Software Technologies competes with Zscaler’s cloud-delivered protection by selling enterprises security gateways and threat-prevention subscriptions. Watch its security subscription revenue for demand for these protections, while customers’ existing appliance investments can slow a move to Zscaler.
Cisco competes with Zscaler for enterprises paying to secure application access and networks, offering hardware and software where Zscaler sells cloud security subscriptions. Cisco’s security offerings are the relevant comparison, rather than its broader networking, collaboration and observability businesses.
CrowdStrike Holdings and Zscaler both depend on enterprises expanding cloud-security subscriptions and consolidating security tools: Falcon protects devices, while Zscaler secures application access. Watch customers adding Falcon modules, which speaks to the appetite for buying more protection from an existing platform.
Microsoft competes for the enterprise spending behind Zscaler’s secure internet and private-application access subscriptions through its Entra Internet Access and Private Access products.
Okta and Zscaler both benefit when enterprises adopt identity-based zero-trust security and add employee users: Okta sells cloud identity subscriptions, while Zscaler checks identity to control application access. Watch Okta’s existing customers adding users or cutting managed identities as their workforces change.
SentinelOne and Zscaler draw on enterprise cybersecurity subscription budgets, with SentinelOne protecting devices and cloud environments while Zscaler protects application access. Watch demand for Singularity’s broader protection tiers, which extend beyond basic device protection into cloud, identity and security services.
Rubrik and Zscaler both depend on enterprises spending to prevent data compromise: Rubrik sells ransomware monitoring and recovery subscriptions, while Zscaler sells threat prevention and data security. Watch demand for Rubrik Security Cloud’s Business and Enterprise editions, which add ransomware monitoring and data-risk monitoring with coordinated recovery.
Fortinet, Inc. earningsFTNT
Fortinet’s report will show demand for its unified networking and secure-access offerings, the market where Fortinet and Zscaler compete.
Focus on Fortinet’s unified SASE and threat-detection and response offerings, not hardware sales alone. Strength in those areas would show that enterprises are still buying the secure access and protection that Fortinet and Zscaler both sell; weakness would point to less support for demand in that shared market.
Zscaler, Inc. earningsThis company
Zscaler sells cloud-security subscriptions to businesses, and this report will show whether existing customers are adding more and new customers are joining without service costs squeezing gross profit.
Read revenue and recurring-revenue growth alongside gross margin. Recurring revenue estimates the next 12 months of subscription revenue under contract; growth in both measures with a steady margin would suggest customer expansion and new subscriptions are turning into revenue without eroding the economics of serving them. Slower growth or a falling margin would put expansion or service costs in question. Because subscription revenue is recognized over contract terms, changes in sales or renewals may take time to show up in revenue.
