Zscaler Acquires SquareX to Advance Zero Trust Browser Security for the AI Era

Rhea-AI Summary

Zscaler (NASDAQ: ZS) acquired SquareX to extend Zero Trust browser security for the AI era, closing the transaction on February 5, 2026. The deal adds lightweight browser extensions that secure standard browsers (Google Chrome, Microsoft Edge) and aims to protect unmanaged or BYOD devices without third-party browsers or full agents.

The companies say the integration will secure SaaS and private apps across any device and embed Zscaler's Zero Trust Exchange Platform capabilities into standard browsers. Terms of the transaction were not disclosed.

Positive

• Acquisition closed on February 5, 2026
• Extends Zero Trust protection into standard browsers (Chrome, Edge)
• Enables security for unmanaged and BYOD devices without full agent deployment
• Aims to secure SaaS and private applications across any device

Negative

• Terms of the transaction were not disclosed

Key Figures

Acquisition close date: February 5, 2026

1 metrics

Acquisition close date February 5, 2026 Closing date of SquareX acquisition

Market Reality Check

Price: $167.33 Vol: Volume 2,393,547 is 25% a...

normal vol

$167.33 Last Close

Volume Volume 2,393,547 is 25% above the 20-day average of 1,914,392 shares. normal

Technical Price at 185.79 trades below the 200-day MA of 270.47, reflecting a pre-news downtrend.

Peers on Argus

ZS fell 1.2% while key peer FTNT appeared in momentum scanners, rising 9.4599999...

1 Up

ZS fell 1.2% while key peer FTNT appeared in momentum scanners, rising 9.459999948740004% without same-day ZS-like news, indicating today’s move was more company-specific than sector-driven.

Common Catalyst Fortinet’s strength is tied to earnings, whereas Zscaler’s move centers on an AI-focused acquisition.

Previous Acquisition,AI Reports

3 past events · Latest: Nov 03 (Positive)

Same Type Pattern 3 events

Date	Event	Sentiment	Move	Catalyst
Nov 03	AI acquisition	Positive	+1.6%	Acquisition of SPLX to extend Zero Trust AI asset discovery and governance.
Aug 01	AI acquisition close	Positive	-1.9%	Completion of Red Canary acquisition to enhance AI-driven SOC capabilities.
May 27	AI acquisition announce	Positive	-1.4%	Announcement to acquire Red Canary and build AI-powered security operations.

Pattern Detected

AI-focused acquisition news has produced mixed reactions, with an average move of -0.57%, including one modest gain and two declines.

Recent Company History

Over the past year, Zscaler has used acquisitions to deepen its AI security and operations stack. In May 27, 2025, it announced plans to acquire Red Canary to build an AI-powered SOC, followed by completion of that deal on Aug 01, 2025. On Nov 03, 2025, Zscaler acquired AI security pioneer SPLX. Today’s SquareX deal continues this pattern of AI- and Zero Trust-focused expansion.

Historical Comparison

acquisition,AI

-0.6 %

Average Historical Move

Historical Analysis

Across 3 prior AI-focused acquisitions, ZS averaged a -0.57% move, with reactions often muted or slightly negative to expansion news.

Typical Pattern

Zscaler has sequentially acquired AI-focused firms (Red Canary, SPLX, now SquareX) to expand Zero Trust, SOC, and browser-centric AI security capabilities.

Market Pulse Summary

This announcement adds SquareX to Zscaler’s series of AI-focused acquisitions, extending Zero Trust ...

Analysis

This announcement adds SquareX to Zscaler’s series of AI-focused acquisitions, extending Zero Trust protection directly into mainstream browsers on any device. It follows prior deals for Red Canary and SPLX, which broadened AI-driven security operations and governance. Investors may watch for concrete metrics on adoption, integration into the Zero Trust Exchange platform, and any impact on margins or cash usage, while considering recent net insider selling over the last 90 days.

Key Terms

zero trust, virtual private networks (VPN), virtual desktop infrastructure (VDI), saas, +1 more

5 terms

zero trust technical

"Zscaler extends zero trust browser capabilities to secure any browser"

Zero trust is a security approach that assumes no one, whether inside or outside an organization, should be automatically trusted. Instead, every access request is carefully verified before being granted, much like checking ID at every door rather than trusting someone just because they are known. For investors, it emphasizes the importance of protecting digital assets and data from potential breaches, reducing overall risk.

virtual private networks (VPN) technical

"Organizations have been using vulnerability-prone Remote Access Virtual Private Networks (VPN)"

A virtual private network (VPN) is a service that creates a secure, private “tunnel” for internet traffic between a user or device and another network, hiding data and location from outsiders. For investors, VPNs matter because they help protect corporate information and enable safe remote access, lowering the risk of costly data breaches and regulatory fines, and they signal demand for cybersecurity tools and services that can affect company costs and market opportunities.

virtual desktop infrastructure (VDI) technical

"or expensive Virtual Desktop Infrastructure (VDI) to extend productivity"

Virtual Desktop Infrastructure (VDI) delivers a computer desktop environment from centralized servers to users over a network, so each person accesses their desktop, apps and files from any device much like logging into a remote office. Investors care because VDI can cut hardware and IT support costs, improve security and make it easier for a company to scale or adapt its workforce; those operational changes affect profit margins, capital spending and business resilience.

saas technical

"enable organizations to secure SaaS and private applications across any device"

SaaS, or Software as a Service, is a way of delivering computer programs over the internet, allowing users to access and use them through a web browser without needing to install or maintain the software themselves. For investors, it highlights a business model where companies generate recurring revenue by providing ongoing access to their software, often leading to predictable income and growth potential.

byod technical

"applications across any device - managed or BYOD - without compromising productivity"

Bring Your Own Device (BYOD) is a workplace practice where employees use their personal phones, tablets or laptops to access company systems and data. For investors, BYOD matters because it can lower a business’s equipment costs and boost employee flexibility, but it also raises concerns about data security, regulatory compliance and potential extra spending on IT controls—similar to letting staff use their own cars for work instead of the company buying a fleet.

AI-generated analysis. Not financial advice.

Zscaler extends zero trust browser capabilities to secure any browser on any device

SAN JOSE, Calif., Feb. 05, 2026 (GLOBE NEWSWIRE) -- Zscaler, Inc. (NASDAQ: ZS), the leader in cloud security, today announced it has acquired SquareX, to further extend Zero Trust capabilities into the browser for the AI era. This acquisition will help redefine browser security, allowing organizations to embed lightweight extensions into any browser, providing increased security and eliminating the need for third-party browsers.

Organizations have been using vulnerability-prone Remote Access Virtual Private Networks (VPN) or expensive Virtual Desktop Infrastructure (VDI) to extend productivity to unmanaged, third-party devices. Zscaler disrupted the market with the introduction of Zscaler Private Access™ (ZPA™), leading a global shift away from traditional VPNs and toward a true Zero Trust architecture. By utilizing a lightweight agent, Zscaler continues to deliver unmatched security and critical device posture checks to tens of millions of users, setting the standard for secure enterprise connectivity.

As organizations' needs evolve and cyberthreats increase, Zscaler is advancing its Zero Trust leadership to address the emerging requirements of the modern, distributed enterprise. With SquareX, Zscaler will extend the same level of uncompromising security to unmanaged devices, enabling organizations to secure users within their preferred browser - such as Google Chrome and Microsoft Edge - without the need for a full agent or the limitations of a separate, third-party browser.

“Enterprises have historically relied on legacy VPNs and VDIs, but these technologies are fundamentally flawed and laden with security risks,” said Jay Chaudhry, CEO, Chairman, and Founder of Zscaler. “With SquareX, Zscaler is deepening our Zero Trust Exchange™ Platform’s capabilities in standard browsers, such as Google Chrome or Microsoft Edge, to stop threats without having to deploy a third-party enterprise browser. Zscaler continues to set the standard as we evolve into an increasingly powerful platform for global enterprise security.”

“By integrating with Zscaler, we will enable organizations to secure SaaS and private applications across any device - managed or BYOD - without compromising productivity,” said Vivek Ramachandran, founder of SquareX. “This approach allows IT leaders to replace expensive, insecure legacy access tools with precise Zero Trust policies that protect data and AI interactions based on an organization’s specific risk profile.”

The acquisition closed on February 5, 2026. Terms of the transaction have not been disclosed.

You can find more information via the blog: Zscaler Acquires SquareX

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Forward-Looking Statements
This press release contains forward-looking statements that are based on our management's beliefs and assumptions and on information currently available to our management. These forward-looking statements include the expected benefits of the proposed acquisition to Zscaler and its customers and plans regarding SquareX’s capabilities. These forward-looking statements are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. A significant number of factors could cause actual results to differ materially from statements made in this press release, including those factors related to our ability to successfully integrate SquareX’s technology into our cloud platform, the potential impact of the acquisition to the existing SquareX business and the retention of SquareX employees. Additional risks and uncertainties are set forth in our most recent Annual Report on Form 10-Q filed with the Securities and Exchange Commission (“SEC”) on November 25, 2025, which is available on our website at ir.zscaler.com and on the SEC's website at www.sec.gov. Any forward-looking statements in this release are based on the limited information currently available to Zscaler as of the date hereof, which is subject to change, and Zscaler will not necessarily update the information, even if new information becomes available in the future.

About Zscaler
Zscaler (NASDAQ: ZS) accelerates digital transformation so customers can be more agile, efficient, resilient, and secure. The Zscaler Zero Trust Exchange™ platform protects thousands of customers from cyberattacks and data loss by securely connecting users, devices, and applications in any location. Distributed across more than 160 data centers globally, the SASE-based Zero Trust Exchange is the world’s largest in-line cloud security platform.

Media Contact
Taylor Dunton, Senior Director, Global Public Relations, press@zscaler.com

FAQ

What did Zscaler (ZS) announce on February 5, 2026 regarding SquareX?

Zscaler announced it acquired SquareX to extend Zero Trust browser security on February 5, 2026. According to Zscaler, the acquisition will embed lightweight browser extensions into standard browsers to secure unmanaged devices and reduce reliance on third-party browsers or full agents.

How will the SquareX acquisition affect Zscaler's Zero Trust capabilities for browsers?

The acquisition extends Zero Trust protection into standard browsers like Chrome and Edge without requiring a full agent. According to Zscaler, this enables organizations to apply Zero Trust policies and device posture checks directly within users' preferred browsers.

Will Zscaler (ZS) require a third-party enterprise browser after acquiring SquareX?

No, Zscaler says the SquareX integration removes the need for a separate third-party enterprise browser. According to Zscaler, lightweight extensions will allow organizations to secure SaaS and private apps within standard browsers while preserving user productivity.

Does the SquareX acquisition change how Zscaler secures unmanaged or BYOD devices?

Yes, the deal aims to secure unmanaged and BYOD devices without expensive VDI or legacy VPNs. According to Zscaler, organizations can enforce precise Zero Trust policies and protect data and AI interactions across any device.

Were financial terms of Zscaler's purchase of SquareX disclosed for ZS shareholders?

No, financial terms were not disclosed in the announcement. According to Zscaler, the acquisition closed on February 5, 2026, but the company did not provide transaction value or detailed financial terms.