Zscaler, Inc. (NASDAQ:ZS) is one of them Cheapest AI Stocks to Buy in 2026.
On March 3, 2026, Wells Fargo initiated coverage on Zscaler with an Overweight rating and a $200 price target. The Wells Fargo analyst sees a reasonable entry point after the recent “noise” associated with Red Canary, while Zscaler’s core business is expected to remain stable and new growth areas such as zero-trust exchanges, data security, and AI will help sustain nearly 20% growth. The memo also highlighted the company’s view that Zscaler is deeply entrenched in large enterprises, with meaningful influence across the Fortune 500 and Global 2000, and argued that concerns about logo-based saturation were overblown.
The rating followed the company’s fiscal second quarter 2026 results released on February 26, 2026 for the quarter ending January 31, 2026. Revenue increased 26% year over year to $815.8 million, while ARR rose 25% to $3.359 billion. Zscaler also reported non-GAAP EPS of $1.01 and non-GAAP operating income of $181.0 million, or a margin of 22%. Management said demand remained strong across its three growth pillars, which it identified as AI security, zero trust everywhere, and data security, and raised its full-year fiscal 2026 ARR growth guidance to 24%.
Zscaler, Inc. (NASDAQ:ZS) is an AI-powered cloud security company focused on a zero-trust architecture. Its platform secures users, workloads and devices by directly connecting applications and services without relying on traditional network parameter tools.
While we acknowledge the potential of ZS as an investment, we believe that some AI stocks offer higher potential and lower risk. If you’re looking for the most undervalued AI stocks that stand to benefit significantly from Trump-era tariffs and the offshore trend, check out our free report Best short-term AI stocks.
Read more: Read more: 30 stocks that should double in 3 years and 11 hidden AI stocks to buy right now.
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