Key insights
- Zscaler launched new security products for AI agents, including Zscaler AI Broker and Zscaler Endpoint AI Security, aimed at protecting enterprise data. These innovations, integrated with their Zero Trust Exchange platform, address growing AI security concerns. The company's strong fundamentals and recent upward earnings revisions by analysts suggest potential positive sentiment for Zscaler and the broader cybersecurity sector, though the direct market impact is moderate.
LAS VEGAS - Zscaler Inc. (NASDAQ:ZS) announced Tuesday new security products designed to protect autonomous AI agents as they access enterprise data and systems, according to a company press release. The $20.2 billion cybersecurity company has seen revenue grow 25% over the last twelve months, maintaining a gross profit margin of 77%.
The cybersecurity firm introduced two main products at its Zenith Live 2026 conference. Zscaler AI Broker secures communications between AI agents through what the company calls MCP and A2A brokers, with an Agent Registry to control access permissions. Zscaler Endpoint AI Security detects threats on employee devices, including risks in browsers, plugins and extensions.
The company also unveiled Zscaler AI Access Graph, which maps connections between identities, applications and data sources across an enterprise. This technology stems from Zscaler’s acquisition of Symmetry Systems and integrates with the company’s Zero Trust Exchange platform.The product launches come as 41 analysts have recently revised their earnings estimates upward for Zscaler, according to InvestingPro data. The platform currently indicates the stock is undervalued, with shares trading well below Fair Value despite the company’s strong fundamentals. Investors can access detailed analysis through Zscaler’s comprehensive Pro Research Report, available for this and 1,400+ other US equities.
Zscaler expanded its AI Protect product, which launched in January 2026, with new features across three areas. AI Asset Management now discovers embedded AI in software-as-a-service and internet traffic, identifies AI agents in public cloud environments, and scans code for risks. Secure Access to AI adds prompt extraction across more than 250 generative AI applications and includes conversational views and support for Anthropic and OpenAI compliance interfaces. Secure AI Infrastructure and Apps introduces red teaming for MCP servers and compliance heat maps.
"Traditional security was never designed for millions of autonomous agents that act and reach sensitive data at machine speed," said Jay Chaudhry, chairman and chief executive of Zscaler.
John Israel, global chief information security officer at KPMG, spoke at the event about data security challenges as businesses deploy AI agents.
The press release included forward-looking statements subject to the Private Securities Litigation Reform Act of 1995, noting that actual results could differ materially from expectations.
In other recent news, Zscaler reported strong fiscal third-quarter 2026 results, surpassing FactSet consensus estimates for revenue, annual recurring revenue, and earnings per share. Despite this performance, the company adjusted its full-year fiscal 2026 revenue guidance upwards while lowering its free cash flow guidance due to increased capital expenditures for data-center equipment. Cantor Fitzgerald responded by lowering its price target for Zscaler to $225, citing concerns about these capital expenditures, though it maintained an Overweight rating. Guggenheim upgraded Zscaler to a Buy rating from Neutral, setting a price target of $214, following a significant drop in the company’s stock after the earnings report. Freedom Broker also adjusted its price target to $230 from $270, maintaining a Buy rating, and highlighted strong performance in areas like AI Protect and cloud marketplace. FBN Securities, however, lowered its price target to $175, expressing concerns over new logo growth and revenue guidance for the coming year. These developments reflect a mixed sentiment among analysts regarding Zscaler’s future prospects.
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