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Is Zscaler’s Expanding AWS and Zero Trust Ecosystem Altering The Investment Case For Zscaler (ZS)?

Simply Wall St · 1d ago
  • In recent weeks, Peraton, Orca Security, and TPx have each announced expanded collaborations with Zscaler, while Zscaler also received major AWS Marketplace Partner of the Year honors tied to more than US$1.00 billion in AWS Marketplace sales.
  • Together, these developments highlight how Zscaler’s Zero Trust and cloud-native security platform is increasingly embedded in critical infrastructure, multicloud, and managed SASE offerings across government and enterprise customers.
  • We’ll now examine how Zscaler’s deepening AWS and Zero Trust partnerships, particularly the Peraton alliance, affect its existing investment narrative.

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Zscaler Investment Narrative Recap

To own Zscaler, you need to believe its Zero Trust cloud platform will keep winning share as organizations re-architect security around cloud and AI, while the biggest near term risk remains intensifying competition and bundled offerings from hyperscalers and large security vendors. The recent Peraton, Orca, TPx, and AWS Marketplace milestones support the core growth story but do not materially change that core catalyst or the competitive risk profile in the short term.

Among the recent updates, the expanded Peraton partnership stands out, because it embeds Zscaler directly into hybrid multicloud and mission critical government environments, where Zero Trust adoption can translate into larger, multi-year platform deals and higher ARR per customer. For investors focused on whether Zscaler can extend its Zero Trust Everywhere and Data Security Everywhere momentum, this kind of integration into national security and defense workloads is especially relevant.

Yet even with these wins, investors should be aware that growing integration of security capabilities by hyperscale cloud providers could still...

Read the full narrative on Zscaler (it's free!)

Zscaler's narrative projects $4.7 billion revenue and $139.8 million earnings by 2028. This requires 20.5% yearly revenue growth and a $181.3 million earnings increase from $-41.5 million today.

Uncover how Zscaler's forecasts yield a $328.22 fair value, a 35% upside to its current price.

Exploring Other Perspectives

ZS Community Fair Values as at Dec 2025
ZS Community Fair Values as at Dec 2025

Nine Simply Wall St Community fair value estimates span roughly US$90 to US$328 per share, showing how far apart individual views can be. When you set that against the thesis that public cloud providers might gradually integrate more security in house, it underlines why exploring several independent viewpoints on Zscaler’s long run competitive position matters.

Explore 9 other fair value estimates on Zscaler - why the stock might be worth less than half the current price!

Build Your Own Zscaler Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.