Zscaler Partners with IBM and Red Hat for Enhanced Application Security

Zscaler Inc (NASDAQ: ZS) has entered a strategic partnership with IBM and Red Hat to bolster the security of private applications. Announced on October 05, 2026, the collaboration integrates Zscaler’s Autonomous Application Shield with IBM and Red Hat’s Lightwell platform. This aims to provide customized protection and validated software remediation during the critical gap between vulnerability disclosures and patch deployments, a period often targeted by cyber threats.

The partnership leverages Zscaler’s Zero Trust Exchange framework, designed to enhance security for enterprises relying on private applications. Zscaler specializes in zero-trust security solutions, offering services like Zscaler Internet Access and Zscaler Private Access, which secure access to external and internal applications without traditional VPNs. The company serves various sectors globally, with a market capitalization of $32.06 billion as of October 2026.

Zscaler’s financial metrics show a Price-to-Sales (P/S) ratio of 9.41, significantly below its historical median of 18.94, indicating cautious market expectations. The company remains unprofitable, making earnings-based metrics like P/E irrelevant. GuruFocus’ GF Score™ rates Zscaler at 76 out of 100, highlighting strong growth potential but weak profitability. Insider activity has been predominantly negative, with $17.8 million in shares sold over the past year.

Analysts note that while the GF Value™ metric suggests the stock is 33.6% undervalued, this should be viewed with caution due to Zscaler’s loss-making status. Guru ownership trends are mixed, with some adding positions while others trim holdings. This reflects uncertainty about Zscaler’s near-term prospects, balanced against its long-term growth potential.