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    Is Zscaler's (ZS) Deeper Peraton Tie-Up Quietly Reframing Its Zero Trust Platform Ambitions?

    Simply Wall St·12/18/2025 10:17:39
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    • Earlier this month, Peraton announced an expanded partnership with Zscaler to combine its hybrid multicloud platform with Zscaler’s cloud-native Zero Trust Exchange, aiming to secure mission-critical government and enterprise environments while simplifying network and security architectures.
    • This collaboration highlights how Zscaler’s Zero Trust and AI-driven security stack is becoming embedded in large-scale digital modernization projects across national security and defense-related operations.
    • Next, we’ll examine how this deepened Peraton partnership may influence Zscaler’s investment narrative, particularly around Zero Trust adoption and platform demand.

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    Zscaler Investment Narrative Recap

    To own Zscaler, you need to believe cloud-delivered Zero Trust and AI security will keep gaining share as organizations modernize away from legacy appliances. The expanded Peraton alliance reinforces that thesis by anchoring Zscaler inside complex, mission-critical environments, but it does not materially change the key near term catalyst, which remains broader Zero Trust platform adoption, or the biggest risk, which is intensifying competition and bundled offerings from large cloud and security vendors.

    Among recent developments, Mizuho’s upgrade to “Outperform” with a US$310 price target stands out in this context, since it explicitly ties its view to Zscaler’s position in Secure Access Service Edge and Zero Trust. That aligns closely with what partnerships like Peraton, HCLTech, and T-Mobile are signaling about demand for unified cloud security, even as questions remain about competition, valuation, and the path from strong revenue growth to sustained profitability.

    Yet beneath these encouraging signals, one risk investors should be aware of is how aggressively bundled security from hyperscale cloud providers could...

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

    Zscaler's narrative projects $4.7 billion revenue and $139.8 million earnings by 2028.

    Uncover how Zscaler's forecasts yield a $328.22 fair value, a 45% upside to its current price.

    Exploring Other Perspectives

    ZS 1-Year Stock Price Chart
    ZS 1-Year Stock Price Chart

    Ten fair value estimates from the Simply Wall St Community range from US$89.53 to US$328.22, underscoring how far apart investors can be. Against that wide spread, Zscaler’s growing role in Zero Trust partnerships may support the bullish camp, but you should weigh it carefully against competitive and margin risks before forming your own view.

    Explore 10 other fair value estimates on Zscaler - why the stock might be worth less than half the current price!

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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.