Zscaler, Inc.
ZS Technology Software Infrastructure
Zscaler, Inc.’s revenue for fiscal 2026 (year ended July 2026) was $3.4 billion, up 25.4% from fiscal 2025. Revenue growth for ten consecutive years, operating cash flow growth for ten.
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Zscaler, Inc. (ZS) Altman Z-score
Zscaler, Inc.'s Altman Z-score for fiscal 2026 is 3.22, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2026 | 3.22 | (3.06) |
| FY2025 | 6.28 | 1.48 |
| FY2024 | 4.80 | (0.30) |
| FY2023 | 5.10 | (0.69) |
| FY2022 | 5.79 | (5.54) |
| FY2021 | 11.33 | 3.33 |
| FY2020 | 8.00 | (13.39) |
| FY2019 | 21.39 | 14.76 |
| FY2018 | 6.62 | — |
How fiscal 2026’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.26 | — | 0.32 | |
| Retained earnings / total assets | (0.16) | — | −0.22 | |
| EBIT / total assets | (0.02) | — | −0.06 | |
| Market value of equity / total liabilities | 4.60 | — | 2.76 | |
| Sales / total assets | 0.43 | — | 0.43 | |
| Altman Z-score | Safe zone | 3.22 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Grey zone | 1.61 | ||
Z and Z″ put Zscaler, Inc. in different zones: safe zone by Z, grey zone by Z″.
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| MDB MongoDB, Inc. compare | 23.0× |
| IOT Samsara Inc. compare | 8.6× |
| FFIV F5, Inc. compare | 6.0× |
| OKTA Okta, Inc. compare | 3.4× |
| ZS Zscaler, Inc. | 3.2× |
| NTAP NetApp, Inc. compare | 2.8× |
| CPAY Corpay, Inc. compare | 1.5× |
| RBRK Rubrik, Inc. compare | 0.9× |
| VRSN VeriSign, Inc. compare | −5.1× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets