Zscaler Stock Price, News & Analysis

Zscaler's (NYSE:ZS) Red Canary division has released its midyear 2025 Threat Detection Report, revealing significant cybersecurity trends. The report highlights a dramatic 500% increase in Cloud Account detections compared to 2024, driven by expanded identity-based threat detection capabilities.

Key findings include two new cloud techniques entering the top 10 detected threats: Data from Cloud Storage and Disable or Modify Cloud Firewall. Analysis of phishing emails revealed that only 16% of suspected phishing emails were actually malicious. The report also details the evolution of the Scarlet Goldfinch threat group, which has shifted to using fake CAPTCHA paste-and-run techniques.

Zscaler (NASDAQ: ZS) has completed its acquisition of Red Canary, marking a significant expansion in cloud security capabilities. Red Canary will initially operate as a separate business unit within Zscaler, leveraging Zscaler's resources while maintaining its innovative SOC capabilities.

The integration combines Red Canary's 10 years of threat intelligence and agentic AI technology with Zscaler's Data Fabric for Security, which processes 500 billion daily transactions through its Zero Trust Exchange platform. This merger aims to deliver one of the industry's most comprehensive SOC solutions, enabling more efficient security operations for both customers and partners.

The combined platform will unify Zero Trust capabilities with automated security operations, spanning communications, exposure management, and threat detection, investigation, and response. Red Canary will continue operating under the brand "Red Canary, a Zscaler company."

Zscaler (NASDAQ: ZS) has released its annual ThreatLabz 2025 Ransomware Report, revealing a dramatic 146% surge in ransomware attacks blocked by their cloud platform. The report highlights a significant shift in attack strategies, with threat actors increasingly focusing on data extortion over encryption. Key findings show that ransomware groups stole 238 TB of data, representing a 92% increase year-over-year.

The report identifies Manufacturing, Technology, and Healthcare as the most targeted sectors, with the Oil & Gas industry experiencing a remarkable 935% increase in attacks. The United States remains the primary target, accounting for 50% of all attacks with 3,671 incidents. RansomHub emerged as the most active group with 833 publicly named victims, followed by Akira (520) and Clop (488).

Zscaler (NASDAQ:ZS) has announced the launch of Zscaler Cellular, extending its AI-powered Zero Trust Exchange platform. This innovative solution enables Zero Trust communication for IoT and OT devices using only a cellular SIM card, eliminating the need for VPNs or additional software.

The solution provides resilient connectivity by allowing IoT/OT devices to automatically connect to any cellular network globally while maintaining security by isolating each device on its own private network. All connections are securely routed through the Zscaler platform, creating zero attack surface.

Launching globally in August 2025, Zscaler Cellular is already being utilized by organizations like Sandvik and Maverick Transportation. The company is partnering with leading telecommunications companies to integrate Zero Trust security with cellular networks at scale.

Zscaler (Nasdaq: ZS) has announced the pricing of $1.5 billion in 0.00% convertible senior notes due 2028 in a private offering to qualified institutional buyers. The notes, maturing on July 15, 2028, will have an initial conversion rate of 2.2752 shares per $1,000 principal amount, equivalent to a conversion price of $439.52 per share, representing a 40% premium over the closing price.

The company expects net proceeds of approximately $1.48 billion (or $1.70 billion if the initial purchasers exercise their additional notes option). Zscaler will use $171.0 million for capped call transactions and the remainder for general corporate purposes. The capped call transactions, with an initial cap price of $784.85 per share, are designed to reduce potential dilution and offset cash payments upon note conversion.

Initial purchasers have a 13-day option to purchase up to an additional $225 million in notes. The offering is expected to close on July 3, 2025, subject to customary conditions.

Zscaler (Nasdaq: ZS) has announced plans to offer $1.5 billion in convertible senior notes due 2028 through a private offering to qualified institutional buyers. The company will also grant initial purchasers a 13-day option to buy up to an additional $225 million in notes.

The notes will be senior unsecured obligations maturing on July 15, 2028, with interest payable semiannually. They will be convertible into cash, Zscaler common stock, or a combination of both at Zscaler's discretion under certain circumstances. The company plans to use part of the proceeds to fund capped call transactions to reduce potential dilution, with the remainder allocated for general corporate purposes, including potential acquisitions.

In connection with the offering, Zscaler will enter into capped call transactions with financial institutions to cover the number of shares underlying the notes, aimed at reducing potential dilution and offsetting cash payments above the principal amount of converted notes.

Zscaler (NASDAQ: ZS) has released a report analyzing cyber insurance claims data from Marsh McLennan's Cyber Risk Intelligence Center, revealing that implementing zero trust security architecture could potentially reduce cyber losses by up to 31%, translating to $465 billion in prevented global annual economic losses. The study found that North America faced 4x more cyber incidents than Europe, though European events were more preventable through zero trust (41% vs 31%). Companies with over $1B in annual revenue could benefit most, with 60% of attacks deemed mitigable. The research noted a 126% year-over-year increase in ransomware incidents, highlighting the growing importance of zero trust implementation. Zscaler's Risk360, part of their Zero Trust Exchange platform, helps organizations quantify cyber risks and streamline insurance applications using data from over 50 million devices.

Zscaler (NASDAQ: ZS) has unveiled advanced AI security capabilities to enhance data protection and combat cyberattacks. The company's platform, which processes over 500 trillion security signals daily, introduced several key innovations: AI-powered data security classification with over 200 categories for sensitive content identification, enhanced generative AI protections with expanded prompt visibility for applications like Microsoft CoPilot, AI-powered segmentation for streamlined app management, and AI-powered Network Intelligence for improved performance monitoring and ISP issue detection. These new features aim to help organizations adopt AI technologies securely while maintaining regulatory compliance and protecting proprietary information.

Zscaler (NASDAQ: ZS) has unveiled new Zero Trust solutions to enhance cybersecurity across branches, multi-cloud environments, and remote settings. The company introduced four key innovations: (1) Unified Appliance for Zero Trust Branch - a solution that secures communications between branches and segments OT/IoT devices, (2) Zero Trust Gateway for Cloud Workloads - a cloud-native service for AWS that secures workload communications, (3) Zscaler Microsegmentation for Cloud Workloads - an AI-driven segmentation service for granular host and process level security, and (4) Zero Trust Exchange for B2B - a platform for secure partner collaboration. These solutions aim to strengthen security, reduce complexity, eliminate lateral threat movement, and enable secure scaling in today's distributed business environment.