← Zscaler overview

Zscaler vs Fortinet: why the prices moved differently

Weekly · monthly · quarterly news summaries, side by side in time

Zscaler Inc (ZS)

Q3 2026
▼3▲1

AI security demand strong, but growth slowdown and cost cuts weigh

  • AI security momentum and strong Q4 results Zscaler's AI security bookings surpassed $100 million, up over 50% from the prior quarter, and Q4 EPS of $1.19 on $898 million revenue beat estimates. A partnership with Schwarz Digits for a European sovereign cloud platform also expanded its reach.

    This shows the company is capitalizing on AI-driven demand, a key growth driver for the stock.

  • Growth slowdown and margin pressure Fiscal 2027 revenue growth is guided to slow to about 17% from 25%, and free cash flow margin was cut to roughly 23% from 27% due to higher capital spending. This signals weaker future profitability and growth.

    Guidance cuts directly impact investor expectations for future earnings and cash flow.

  • Workforce reduction and executive departure Zscaler announced a 3% workforce reduction and its Chief Revenue Officer exited. These moves raised concerns about execution and morale, weighing on investor sentiment.

    Management changes and layoffs can signal internal challenges and affect future performance.

  • AI supply-chain exposure and shelf filing Zscaler was among 2,500+ firms potentially exposed in the LiteLLM AI supply-chain incident, and it filed a $1.69 billion shelf offering. These raised concerns about security risks and potential share dilution.

    Supply-chain incidents can damage reputation, and shelf filings often precede equity issuance, diluting existing shares.

September 2026
▲2▼2

Zscaler's strong Q4 overshadowed by slowing growth outlook and executive exit

  • Q4 earnings beat and strong guidance Zscaler reported Q4 EPS of $1.19 and revenue of $898M, beating estimates, and issued above-consensus guidance for fiscal 2027. The stock initially rose 11% on the news.

    This was a major positive event that initially lifted the stock.

  • AI security bookings surge AI security bookings exceeded $100M, up over 50% sequentially, with Zero Trust Everywhere customers reaching 950 and record $1M deals. The Agentic SOC launch with Anthropic and OpenAI expands its AI security platform.

    Highlights strong demand for Zscaler's AI security offerings.

  • Fiscal 2027 revenue growth slowdown Fiscal 2027 revenue growth is guided to ~17%, down from 25%, raising concerns about demand and longer sales cycles. The stock fell 7.8% on this news.

    This was a key negative driver that pulled the stock down.

  • Workforce reduction and shelf filing A 3% AI-focused workforce reduction and a $1.69B shelf filing added dilution worries. The Chief Revenue Officer's exit also weighed on the stock, which fell 4%.

    These events contributed to negative sentiment and stock decline.

Latest
▲2▼1

AI security bookings surge, but growth slowdown and CRO exit weigh on Zscaler

  • AI security bookings top $100M, up 50% sequentially Zscaler's AI security bookings crossed $100 million over the past year and grew over 50% in the latest quarter. Customers using its Zero Trust Everywhere product jumped to 950 from 300, and it closed a record number of $1 million deals. This shows its AI bet is gaining real traction, supporting the stock.

    This is the core new evidence that Zscaler's AI security products are selling, directly addressing the growth question.

  • Agentic SOC launch deepens AI security platform Zscaler launched Agentic SOC, an AI-powered security operations platform co-developed with Anthropic and OpenAI. It uses AI agents and over 750 billion daily zero trust transactions to automate threat response. This expands its product lineup and could drive future demand, supporting the stock.

    The new product launch is a fresh catalyst that could become a second growth engine, directly relevant to the AI security narrative.

  • Chief Revenue Officer steps down, successor named Zscaler appointed Ross Tackett as Chief Revenue Officer effective October 1, 2026, succeeding Mike Rich, who is stepping down for personal reasons. Leadership changes in sales can create uncertainty about execution, and the stock fell 4% on the news.

    A CRO transition is a new event that adds execution risk and weighed on the stock, providing a fair counterweight.

▲2▼2

Zscaler's strong Q4 offset by slower 2027 growth outlook

  • Q4 beat and strong guidance Zscaler reported Q4 EPS of $1.19 and revenue of $898 million, beating estimates, and issued Q1 and full-year 2027 guidance above consensus. Shares initially jumped 11% after hours, showing the market rewarded the results.

    This is the core new event that drove the stock up initially.

  • Slower 2027 growth outlook Fiscal 2027 revenue growth is guided to about 17%, down from 25% in 2026, and ARR growth also slows. This step-down raised concerns about cooling demand and longer sales cycles, pulling the stock down 7.8% after the initial pop.

    This is the main reason the stock reversed and fell, a key new negative driver.

  • AI restructuring and shelf filing Zscaler announced a 3% workforce reduction to focus on AI and filed a $1.69 billion shelf registration for ESOP-related stock. The restructuring and potential dilution added to investor worries, contributing to the sell-off.

    These are new negative events that weighed on sentiment.

  • New Agentic SOC product launch Zscaler launched Agentic SOC, an AI-powered security operations solution using zero trust telemetry and partnerships with Anthropic and OpenAI. This expands its AI security offerings and could drive future demand, supporting the stock.

    This is a new product that shows innovation and potential growth.

August 2026
▲2▼2

Zscaler's AI Security Demand Grows, But Costs and a Supply-Chain Scare Weigh

  • European sovereign cloud partnership expands reach Zscaler teamed with Schwarz Digits to launch a sovereign cloud security platform in Europe, combining its Zero Trust Exchange with Germany-hosted STACKIT infrastructure. This opens a new regulated-market sales channel, supporting future revenue and giving the stock a demand-side lift.

    A concrete new growth avenue that directly supports Zscaler's revenue outlook.

  • AI supply-chain exposure flags Zscaler among 2,500 firms CloudSEK said Zscaler is among 2,500-plus organizations potentially exposed in the LiteLLM AI supply-chain incident, with credentials and secrets possibly accessible. Appearing on the list doesn't prove a breach, but it raises reputational and cleanup risk, a modest drag on sentiment.

    A new negative headline naming Zscaler directly, which can pressure the stock.

  • CapEx raised, free cash flow margin guidance cut Zscaler lifted its fiscal 2026 CapEx outlook to high-single-digit percent of revenue and cut its free cash flow margin guidance to about 23% from 27%, pulling forward equipment buys to beat rising memory and processor prices. Higher spending and thinner cash generation weigh on the stock.

    A direct hit to profitability and cash flow expectations, a core valuation driver.

  • Peer results confirm AI-driven security demand Palo Alto Networks posted its strongest network security quarter in years on AI and cloud spending, and Salesforce's surge showed AI is lifting software demand. Analysts expect Zscaler's coming earnings to benefit from the same trend, supporting the stock ahead of its report.

    Sector-wide evidence that AI security spending is accelerating, a key support for Zscaler's growth story.

▲2▼2

Zscaler's AI Security Demand Grows, But Costs and a Supply-Chain Scare Weigh

  • European sovereign cloud partnership expands reach Zscaler teamed with Schwarz Digits to launch a sovereign cloud security platform in Europe, combining its Zero Trust Exchange with Germany-hosted STACKIT infrastructure. This opens a new regulated-market sales channel, supporting future revenue and giving the stock a demand-side lift.

    A concrete new growth avenue that directly supports Zscaler's revenue outlook.

  • AI supply-chain exposure flags Zscaler among 2,500 firms CloudSEK said Zscaler is among 2,500-plus organizations potentially exposed in the LiteLLM AI supply-chain incident, with credentials and secrets possibly accessible. Appearing on the list doesn't prove a breach, but it raises reputational and cleanup risk, a modest drag on sentiment.

    A new negative headline naming Zscaler directly, which can pressure the stock.

  • CapEx raised, free cash flow margin guidance cut Zscaler lifted its fiscal 2026 CapEx outlook to high-single-digit percent of revenue and cut its free cash flow margin guidance to about 23% from 27%, pulling forward equipment buys to beat rising memory and processor prices. Higher spending and thinner cash generation weigh on the stock.

    A direct hit to profitability and cash flow expectations, a core valuation driver.

  • Peer results confirm AI-driven security demand Palo Alto Networks posted its strongest network security quarter in years on AI and cloud spending, and Salesforce's surge showed AI is lifting software demand. Analysts expect Zscaler's coming earnings to benefit from the same trend, supporting the stock ahead of its report.

    Sector-wide evidence that AI security spending is accelerating, a key support for Zscaler's growth story.

Q2 2026
▲3▼1

Zscaler's strong demand and partnerships offset competitive and legal worries

  • Z-Flex program drives strong demand Zscaler's Z-Flex program generated over $480 million in total contract value in the third quarter, up more than 60% from the prior quarter. Annual recurring revenue rose 25% to over $3.5 billion. This shows customers are committing more, which supports future revenue and should lift the stock.

    This is a new positive demand signal that directly boosts Zscaler's growth outlook.

  • Aston Martin F1 cybersecurity deal Zscaler announced a multi-year partnership with the Aston Martin Aramco Formula One Team to protect its car design, race strategy, and real-time data. The stock jumped 6% on the news. This high-profile deal validates Zscaler's technology and could attract more customers.

    It's a new contract win that signals demand and boosts investor confidence.

  • CIO survey shows solid spending plans A Jefferies survey of 40 CIOs found that 43% plan to increase spending on Zscaler in 2026, even as cybersecurity budgets grow in line with IT. This indicates steady demand, though the pace of budget increases may be gradual.

    It provides forward-looking demand evidence that supports Zscaler's growth narrative.

  • Pomerantz investigation into possible securities fraud Pomerantz LLP is investigating Zscaler for possible securities fraud after the company's revenue guidance missed expectations, causing a 31% stock drop. Legal uncertainty can weigh on the stock and distract management, though the investigation is at an early stage.

    It's a new legal risk that could pressure the stock and investor sentiment.

June 2026
▲3▼1

Zscaler's strong demand and partnerships offset competitive and legal worries

  • Z-Flex program drives strong demand Zscaler's Z-Flex program generated over $480 million in total contract value in the third quarter, up more than 60% from the prior quarter. Annual recurring revenue rose 25% to over $3.5 billion. This shows customers are committing more, which supports future revenue and should lift the stock.

    This is a new positive demand signal that directly boosts Zscaler's growth outlook.

  • Aston Martin F1 cybersecurity deal Zscaler announced a multi-year partnership with the Aston Martin Aramco Formula One Team to protect its car design, race strategy, and real-time data. The stock jumped 6% on the news. This high-profile deal validates Zscaler's technology and could attract more customers.

    It's a new contract win that signals demand and boosts investor confidence.

  • CIO survey shows solid spending plans A Jefferies survey of 40 CIOs found that 43% plan to increase spending on Zscaler in 2026, even as cybersecurity budgets grow in line with IT. This indicates steady demand, though the pace of budget increases may be gradual.

    It provides forward-looking demand evidence that supports Zscaler's growth narrative.

  • Pomerantz investigation into possible securities fraud Pomerantz LLP is investigating Zscaler for possible securities fraud after the company's revenue guidance missed expectations, causing a 31% stock drop. Legal uncertainty can weigh on the stock and distract management, though the investigation is at an early stage.

    It's a new legal risk that could pressure the stock and investor sentiment.

▲3▼1

Zscaler's strong demand and partnerships offset competitive and legal worries

  • Z-Flex program drives strong demand Zscaler's Z-Flex program generated over $480 million in total contract value in the third quarter, up more than 60% from the prior quarter. Annual recurring revenue rose 25% to over $3.5 billion. This shows customers are committing more, which supports future revenue and should lift the stock.

    This is a new positive demand signal that directly boosts Zscaler's growth outlook.

  • Aston Martin F1 cybersecurity deal Zscaler announced a multi-year partnership with the Aston Martin Aramco Formula One Team to protect its car design, race strategy, and real-time data. The stock jumped 6% on the news. This high-profile deal validates Zscaler's technology and could attract more customers.

    It's a new contract win that signals demand and boosts investor confidence.

  • CIO survey shows solid spending plans A Jefferies survey of 40 CIOs found that 43% plan to increase spending on Zscaler in 2026, even as cybersecurity budgets grow in line with IT. This indicates steady demand, though the pace of budget increases may be gradual.

    It provides forward-looking demand evidence that supports Zscaler's growth narrative.

  • Pomerantz investigation into possible securities fraud Pomerantz LLP is investigating Zscaler for possible securities fraud after the company's revenue guidance missed expectations, causing a 31% stock drop. Legal uncertainty can weigh on the stock and distract management, though the investigation is at an early stage.

    It's a new legal risk that could pressure the stock and investor sentiment.

Fortinet Inc (FTNT)

Q3 2026
▲3▼1

Fortinet Q3: AI Launches, Chip Deal, Record Results; Valuation and Cisco Risks

  • Record Q2 results and strong growth Fortinet reported Q2 revenue of $2.05B, up 20-26%, with product revenue up 52% and billings up 33%. Margins hit record levels, showing robust demand for its cybersecurity products.

    This point explains the strong financial performance that drove positive sentiment and stock gains.

  • AI security platform and strategic partnerships Fortinet launched FortiSOC, an AI security platform, acquired Virtue AI, and partnered with Intel Foundry for its next-gen SP6 chip. These moves expand its technology and diversify supply.

    These strategic actions highlight innovation and supply chain improvements that support future growth.

  • Analyst upgrades and 52-week high Analysts raised price targets to $170-$215, Morgan Stanley upgraded the stock, and shares hit a 52-week high of $175.23. FortiGate also earned a 'Recommended' rating in cloud firewall testing.

    This point captures the positive market reaction and validation from analysts and testing.

  • High valuation and competitive pressures The stock trades at roughly 60x earnings and 16-18x sales, well above fair value, leaving little room for disappointment. Cisco's expanded NVIDIA alliance and strong firewall growth intensify competition.

    This point highlights the key risks that could limit upside or pressure the stock.

September 2026
▲4

Fortinet's AI Security Demand Drives Guidance Raise, Price Target Hikes

  • Fortinet Raises Full-Year 2026 Guidance on Strong Q2 Fortinet raised full-year 2026 guidance after Q2 revenue grew 26% to $2.05B and product revenue surged 52%. Billings rose 33%. This signals robust demand for its security platform, boosting investor confidence and pushing the stock up.

    This is the core positive fundamental news that directly lifts FTNT's price.

  • Analysts Raise Price Targets and Fair Value on AI Demand Analysts lifted FTNT price targets to $170-$215 and fair value to $163.13, citing strong Q2 results and AI-related demand. Morgan Stanley upgraded the stock. This validates the growth story and attracts buyers, pushing the price up.

    Analyst upgrades and target hikes directly influence investor sentiment and buying pressure.

  • Fortinet Hits 52-Week High on AI Security Platform Demand FTNT hit a 52-week high of $175.23 as demand for its unified security platform accelerated. New products like FortiSOC and FortiEndpoint with AI capabilities drove billings up 33% and product revenue up 52%, fueling the rally.

    This shows the market's positive reaction to Fortinet's AI-driven product momentum.

  • Fortinet Earns Recommended Rating in Cloud Firewall Test Fortinet's FortiGate NGFW earned a Recommended rating with 99.7%+ security effectiveness in a 2026 cloud firewall test. This independent validation strengthens its competitive position and supports pricing power, positively impacting the stock.

    Third-party validation reinforces Fortinet's technology leadership, a key driver for future sales.

Latest
▲4

Fortinet's AI Security Demand Drives Guidance Raise, Price Target Hikes

  • Fortinet Raises Full-Year 2026 Guidance on Strong Q2 Fortinet raised full-year 2026 guidance after Q2 revenue grew 26% to $2.05B and product revenue surged 52%. Billings rose 33%. This signals robust demand for its security platform, boosting investor confidence and pushing the stock up.

    This is the core positive fundamental news that directly lifts FTNT's price.

  • Analysts Raise Price Targets and Fair Value on AI Demand Analysts lifted FTNT price targets to $170-$215 and fair value to $163.13, citing strong Q2 results and AI-related demand. Morgan Stanley upgraded the stock. This validates the growth story and attracts buyers, pushing the price up.

    Analyst upgrades and target hikes directly influence investor sentiment and buying pressure.

  • Fortinet Hits 52-Week High on AI Security Platform Demand FTNT hit a 52-week high of $175.23 as demand for its unified security platform accelerated. New products like FortiSOC and FortiEndpoint with AI capabilities drove billings up 33% and product revenue up 52%, fueling the rally.

    This shows the market's positive reaction to Fortinet's AI-driven product momentum.

  • Fortinet Earns Recommended Rating in Cloud Firewall Test Fortinet's FortiGate NGFW earned a Recommended rating with 99.7%+ security effectiveness in a 2026 cloud firewall test. This independent validation strengthens its competitive position and supports pricing power, positively impacting the stock.

    Third-party validation reinforces Fortinet's technology leadership, a key driver for future sales.

August 2026
▲3▼1

Fortinet's AI-Driven Demand and Intel Deal Fuel Growth

  • Intel Foundry Partnership Diversifies Chip Supply Fortinet signed Intel Foundry as its manufacturing partner for the next-gen Security Processor 6, reducing reliance on TSMC. This secures supply and supports future product launches, which can lift revenue and investor confidence.

    New partnership directly addresses supply chain and technology, a fresh positive catalyst.

  • CFO Details Broad-Based Demand and SASE Momentum Fortinet's CFO highlighted accelerating hardware sales, 52% product revenue growth, and unified SASE growing 35% to a quarter of sales. This shows strong demand across AI infrastructure, OT, and SASE, supporting the raised outlook and stock price.

    Provides concrete demand metrics that explain the raised guidance and stock strength.

  • Virtue AI Acquisition Bolsters AI Security Fortinet acquired Virtue AI to add AI runtime protection and agentic system security. This enhances its Security for AI strategy, potentially opening new revenue streams and keeping it competitive in AI security.

    New acquisition expands technology portfolio and addresses growing AI security market.

  • Cisco-NVIDIA Alliance Intensifies Competition Cisco expanded its Secure AI Factory with NVIDIA, embedding security into AI infrastructure to counter Fortinet. Cisco's security revenue rose 14% and firewall orders grew over 30%, posing a competitive threat that could pressure Fortinet's market share.

    New competitive development that could limit Fortinet's growth and is a real counterweight.

▲3▼1

Fortinet's AI-Driven Demand and Intel Deal Fuel Growth

  • Intel Foundry Partnership Diversifies Chip Supply Fortinet signed Intel Foundry as its manufacturing partner for the next-gen Security Processor 6, reducing reliance on TSMC. This secures supply and supports future product launches, which can lift revenue and investor confidence.

    New partnership directly addresses supply chain and technology, a fresh positive catalyst.

  • CFO Details Broad-Based Demand and SASE Momentum Fortinet's CFO highlighted accelerating hardware sales, 52% product revenue growth, and unified SASE growing 35% to a quarter of sales. This shows strong demand across AI infrastructure, OT, and SASE, supporting the raised outlook and stock price.

    Provides concrete demand metrics that explain the raised guidance and stock strength.

  • Virtue AI Acquisition Bolsters AI Security Fortinet acquired Virtue AI to add AI runtime protection and agentic system security. This enhances its Security for AI strategy, potentially opening new revenue streams and keeping it competitive in AI security.

    New acquisition expands technology portfolio and addresses growing AI security market.

  • Cisco-NVIDIA Alliance Intensifies Competition Cisco expanded its Secure AI Factory with NVIDIA, embedding security into AI infrastructure to counter Fortinet. Cisco's security revenue rose 14% and firewall orders grew over 30%, posing a competitive threat that could pressure Fortinet's market share.

    New competitive development that could limit Fortinet's growth and is a real counterweight.

July 2026
▲3▼1

Fortinet surges on AI platform, strong Q2, raised outlook

  • AI security platform launch Fortinet launched FortiSOC, an AI-powered security platform, strengthening its product lineup and appeal to customers adopting AI-driven security tools.

    New product launch that could drive future demand and competitive positioning.

  • Strong Q2 results and raised guidance Q2 revenue of $2.05 billion beat estimates, with 20% growth and record margins. Fortinet raised its 2026 outlook, sending shares up over 11%.

    Directly drove the stock's sharp rise in late July.

  • Analyst upgrades and Intel partnership Barclays and BofA lifted price targets on steady firewall demand. Intel named Fortinet its first outside foundry customer for the next-gen SP6 security chip.

    Boosted investor confidence and highlighted strategic validation.

  • Valuation and demand pull-forward risks Some firewall demand may be pulled forward, and the stock trades at roughly 60x earnings and 16–18x sales, well above fair value, leaving little room for disappointment.

    Provides a balanced view of potential downside risks despite strong momentum.

▲3

Fortinet Raises Outlook on Strong Billings; New Products Boost SASE Push

  • Fortinet raises full-year revenue and profit forecast Fortinet lifted its 2026 revenue outlook to $8.02–$8.18 billion and EPS to $3.41–$3.47, after Q2 revenue of $2.05 billion and EPS of 90 cents beat estimates. Strong billings signal robust customer demand, pushing the stock up over 11%.

    This is the main new event that directly answers why FTNT is moving right now.

  • New FortiGate 1200G and FortiSASE Outpost expand product line Fortinet launched the FortiGate 1200G firewall and FortiSASE Outpost, offering faster speeds and cloud-delivered security on customer premises. This strengthens its competitive position in the growing SASE market, supporting future revenue growth.

    A new product launch that shows innovation and addresses demand for unified security platforms.

  • Fortinet gains ground in SASE against Palo Alto Networks Palo Alto Networks faces margin pressure from acquisitions, while Fortinet sees stronger adoption of its unified SASE platform. This competitive win could lead to more customers and revenue, lifting investor sentiment.

    Highlights a competitive shift that benefits Fortinet's market share and pricing power.

  • High valuation leaves little room for error Fortinet trades at about 60 times earnings and 16–18 times sales, well above a fair value estimate of $125.56. While AI security optimism is high, any disappointment could quickly pressure the stock, making it a risk to watch.

    Provides a balanced view of the risk that could reverse recent gains.

▲4

Fortinet's AI Security Push and Firewall Demand Drive Positive Momentum

  • AI-Driven FortiSOC Launch and Strong Q1 Results Fortinet launched FortiSOC, an AI-powered security operations platform, after reporting 20% revenue growth, record margins, and raised full-year guidance. This shows the company is innovating and executing well, which supports a higher stock price.

    New product and strong financials directly boost investor confidence and future earnings potential.

  • Analyst Price Target Hikes on Steady Demand Barclays and BofA raised their price targets for Fortinet, citing steady demand and no inventory issues. Higher targets from respected analysts can attract more buyers and lift the stock.

    Analyst upgrades often influence market sentiment and can drive short-term price increases.

  • Enterprise Firewall Buying Surge and Cybersecurity Spending Shift Barclays noted enterprises are aggressively buying firewalls to beat price hikes, and IBM's warning about spending shifts highlighted sustained cybersecurity demand. This benefits Fortinet as a major firewall vendor, though some demand may be pulled forward.

    Directly addresses current demand drivers for Fortinet's core products and broader sector tailwinds.

  • Intel Foundry Partnership for Next-Gen Security Chip Intel named Fortinet as its first outside foundry customer to manufacture Fortinet's next-gen SP6 security chip. This secures advanced manufacturing and validates Fortinet's technology, potentially boosting future product competitiveness.

    New strategic partnership enhances supply chain and innovation, a positive for long-term growth.

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