$ZS Posts 25.9% Revenue Growth, ACCE Score Stays at 42
Zscaler reported earnings on May 26, 2026. Revenue grew 25.9% YoY, forward P/E sits at 39.8, and the ACCE score holds at 42/100. Here's what the numbers say.
$ZS reported earnings on May 26, 2026. The headline number: revenue grew 25.9% year over year. That is a meaningful clip for a company with a $29.32B market cap, and it confirms that demand for Zscaler's cloud security platform has not stalled.
EPS comparisons are not available in this report, so we cannot say whether the bottom line kept pace with the top line. The forward P/E stands at 39.8, which prices in continued growth but leaves little room for execution misses. The stock was priced at $182.37 as of May 25, 2026, the day before the print. Analysts carry a consensus target of $223.39, implying roughly 22% upside from that pre-earnings level.
The ACCE score for $ZS sits at 42 out of 100. That score reflects our multi-factor model across momentum, quality, and valuation signals. A 42 is below the midpoint, meaning the model sees more caution than conviction at this stage despite the strong revenue line.
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$ZS pays no dividend, so total return depends entirely on price appreciation.
What it means
The 25.9% revenue growth rate is the strongest data point in this report. For a cybersecurity company operating in a crowded zero-trust market, sustaining that pace matters. It suggests $ZS is still taking share or expanding wallet within existing accounts, though without segment-level detail we cannot pinpoint where the growth is coming from.
The forward P/E of 39.8 is not cheap. At that multiple, the market is already paying for growth to continue. If the next quarter shows any deceleration, the valuation has limited cushion.
The gap between the ACCE score of 42 and the analyst target of $223.39 is worth noting. Sell-side targets tend to weight revenue momentum heavily. The ACCE model pulls in a broader set of signals, and right now those signals are mixed enough to keep the score below neutral.
We do not have guidance commentary from this report. Management's forward outlook, billings growth, and any commentary on federal or enterprise spending would all shift the picture. Check acceinvestments.com/stocks/ZS for updates as that information becomes available.
Bottom line: $ZS delivered a strong revenue quarter. The valuation and the ACCE score both say the market needs more than revenue growth to re-rate the stock higher from here.
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