Zscaler, Inc.
Zscaler is a U.S.-based cloud security company that delivers security services through its cloud platform rather than through on-premises appliances. Its core offerings help enterprises secure internet access, private application access, and user-to-application connections across distributed workforces and branch locations.
Fiscal year 2026 · change from previous year
Development 2021–2026
Business
Share of revenueSubscription access to Zscaler's cloud platform, including ZIA, ZPA and related security functionality.
Ongoing customer support tied to subscription deployments and platform usage.
Implementation, mapping, network design and training services sold alongside subscriptions.
Customers
Zscaler sells to enterprises of all sizes, with a strong concentration in large global organizations and public-sector users. Customers buy the platform to route internet traffic and private application access through a cloud-delivered security layer, often starting with one use case and expanding over time. The company serves a broad mix of industries, including financial services, healthcare, manufacturing, technology, telecommunications, public sector and education.
Buy ZIA, ZPA and premium bundles to secure large user bases and complex networks; strategically critical.
Adopt the cloud platform for internet and private access security as they modernize IT environments.
Use the platform to secure access for distributed users and sensitive data environments.
Add users, modules and higher-tier bundles after initial deployment; a key growth engine.
Strategy
Zscaler's strategy centers on expanding its customer base, deepening adoption within existing accounts, and extending its platform with new security capabilities. It also relies on channel partners and global cloud marketplaces to broaden reach, while continuing to invest in product development and international expansion.
Expands the installed base and creates future renewal and expansion opportunities.
Raises revenue per customer by adding users, solutions and premium bundles.
Extends market reach and accelerates customer fulfillment through third parties.
Keeps the platform differentiated and broadens the addressable market.
Geography
Zscaler operates globally, with users in over 185 countries and customers across major geographies. Approximately 49% of revenue comes from customers outside the United States, showing meaningful international exposure even though contracts are largely denominated in U.S. dollars. The company is also targeting expansion in Asia Pacific, Latin America and the Middle East, which broadens its addressable market and increases exposure to local procurement and regulatory conditions.
Risks
Zscaler faces execution risk in converting enterprise demand into new wins and renewals, especially when customers delay large purchases. The company also operates in a highly competitive security market where large cloud and telecom players, as well as startups, can pressure pricing and product differentiation. Because the business depends on continuous cloud service delivery and global infrastructure, outages, supply-chain issues, and regulatory changes can directly affect customer trust and operating performance.
- Customer adoption and renewal riskImpact: HighLikelihood: Medium
Revenue depends on enterprises adopting the platform and expanding usage over time.
Exposure - Intense competitionImpact: HighLikelihood: Medium
Security vendors, cloud providers and telecom partners can offer competing solutions.
Exposure - Service availability riskImpact: HighLikelihood: Medium
The platform must operate continuously to protect customer traffic and maintain trust.
Exposure - Macroeconomic purchasing delaysImpact: MediumLikelihood: High
Large enterprise deals can be slowed by customer scrutiny and approval processes.
Exposure - Geopolitical and supply-chain exposureImpact: MediumLikelihood: Medium
Data-center components and third-party services may be affected by trade or conflict.
Exposure
Accounting
Judgemental itemsSubscription and support revenue is recognized ratably, so billing timing affects deferred revenue and comparability.
Impact: Deferred revenue, quarterly revenue timing
Annual in-advance invoicing can cause billings to move ahead of revenue recognition.
Impact: Short-term and long-term deferred revenue
The company references legal matters and related accruals that depend on estimates.
Impact: Operating expenses and liabilities
Potential business acquisitions and strategic transactions may require fair value judgments.
Impact: Intangible assets, goodwill, future impairment risk
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Last updated: 24/09/2026