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CYBR vs. ZS: Which Cybersecurity Stock is the Better Buy Now?
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Key Takeaways
CYBR is gaining from AI-driven identity security, with machine identities now outnumbering human ones 80 to 1.
CYBR's Secure AI Agents and CORA AI tools strengthen its platform, supported by acquisitions like Venafi.
ZS expands via Zero Trust and agentic SecOps but faces margin pressure from rising S&M and R&D expenses.
CyberArk Software (CYBR - Free Report) and Zscaler (ZS - Free Report) are two key players in the cybersecurity space, serving different areas of the security stack. CyberArk primarily specializes in privileged access management and identity security, while Zscaler has its edge in secure access service edge and cloud security. However, both CYBR and ZS overlap with zero-trust architecture.
Both CyberArk and Zscaler are capitalizing on the rapid growth of the cybersecurity market, driven by the rise of advanced attacks and AI proliferation. Per a Mordor Intelligence report, the cybersecurity market is projected to witness a CAGR of 12.63% from 2025 to 2030.
As the cybersecurity market grows at a rapid pace, the question remains: Which stock has more upside potential? Let us break down their fundamentals, growth prospects, market challenges and valuation to determine which offers a more compelling investment case.
The Case for CyberArk Stock
CyberArk is experiencing a shift in its identity security offerings due to the momentum in machine identities outnumbering human identities, which now stands at more than 80 to 1, up from a 45 to 1 ratio just a year ago. The traction in machine identities will keep growing as automated systems, AI agents, and workload-based architectures gain adoption. During first-quarter 2025, CyberArk reported that machine identity products featured in nine of the 10 largest deals in the quarter.
CYBR is not only riding the AI proliferation passively, but it is also bringing innovation by implementing AI-based products like Secure AI Agents and CORA AI. While CYBR’s Secure AI Agent solution is designed to protect the AI Agents deployed by CyberArk’s enterprise customers from prompt injection, credential leakage, and permission abuse, CORA AI serves as the intelligence engine embedded inside the Secure AI Agent solution.
CORA AI and Secure AI Agents integration within CyberArk’s identity security platform enables it to secure a full spectrum of identities, including human, AI and machine. Furthermore, CYBR is also expanding its capabilities through inorganic growth. CYBR’s acquisitions of Zilla Security and Venafi have expanded its expertise in identity governance and machine identity. The acquisitions also enhanced its recurring revenues and market share.
These emerging opportunities provide ample space to grow in the cybersecurity space. The Zacks Consensus Estimate for CYBR’s 2025 and 2026 revenue growth rate indicates 31% and 19% rise, respectively. The Zacks Consensus Estimates for CYBR’s bottom line suggests growth rates of 26.4% and 25%, respectively.
Image Source: Zacks Investment Research
The Case for Zscaler Stock
Zscaler is employing multiple strategies to capitalize on the growing cybersecurity market. Zscaler’s latest bets include Zero Trust Everywhere, Zero Trust for Cloud workloads, Zero Trust for Branches and agentic SecOps, which might prove to be a wildcard for the company’s rapid growth in the future.
In the third quarter of fiscal 2025, Zscaler reported more than 210 Zero Trust Everywhere enterprises, representing sequential growth of 60%. Zscaler aims to exceed 390 customers by the end of fiscal 2026. In the ITOps and SecOps business, Zscaler rolled out ZDX Copilot, Risk360, Business Insights, Unified Vulnerability Management, Identity Threat Detection, and Cyber Asset Attack Surface Management. These features provide ZS opportunities to grow in multiple directions.
However, since ZS operates in a highly competitive cybersecurity space, the company has to invest heavily in sales and marketing (S&M) and research and development (R&D), squeezing near-term profitability. Over the past few years, Zscaler’s S&M and R&D expenses have both been in double digits.
While S&M expenses were mainly driven by increasing the sales force, investment in R&D remained a top priority for Zscaler. Over the past couple of years, it has almost doubled its R&D expenses to improve the design, architecture, operation and quality of its cloud platform. Zscaler’s fiscal 2026 earnings have been pegged at $3.08, indicating a year-over-year decline of 3.5%.
Image Source: Zacks Investment Research
CYBR vs. ZS: Price Performance & Valuation
Year to date, CyberArk shares have jumped 19.6% and shares of Zscaler have surged 74.4%.
Image Source: Zacks Investment Research
CyberArk is trading at a forward sales multiple of 13.6X, higher than Zscaler’s 6.65X. CyberArk does seem pricey compared with Zscaler. However, CYBR’s valuations also reflect higher growth expectations for the company.
Image Source: Zacks Investment Research
Conclusion: Buy CyberArk Stock Right Now
Both Zscaler and CyberArk are key players in the cybersecurity space, but Zscaler is facing near-term challenges, including rising operating expenses and shrinking margins. In contrast, CyberArk is delivering robust growth, expanding through acquisitions, and innovating in identity and AI security.
Image: Bigstock
CYBR vs. ZS: Which Cybersecurity Stock is the Better Buy Now?
Key Takeaways
CyberArk Software (CYBR - Free Report) and Zscaler (ZS - Free Report) are two key players in the cybersecurity space, serving different areas of the security stack. CyberArk primarily specializes in privileged access management and identity security, while Zscaler has its edge in secure access service edge and cloud security. However, both CYBR and ZS overlap with zero-trust architecture.
Both CyberArk and Zscaler are capitalizing on the rapid growth of the cybersecurity market, driven by the rise of advanced attacks and AI proliferation. Per a Mordor Intelligence report, the cybersecurity market is projected to witness a CAGR of 12.63% from 2025 to 2030.
As the cybersecurity market grows at a rapid pace, the question remains: Which stock has more upside potential? Let us break down their fundamentals, growth prospects, market challenges and valuation to determine which offers a more compelling investment case.
The Case for CyberArk Stock
CyberArk is experiencing a shift in its identity security offerings due to the momentum in machine identities outnumbering human identities, which now stands at more than 80 to 1, up from a 45 to 1 ratio just a year ago. The traction in machine identities will keep growing as automated systems, AI agents, and workload-based architectures gain adoption. During first-quarter 2025, CyberArk reported that machine identity products featured in nine of the 10 largest deals in the quarter.
CYBR is not only riding the AI proliferation passively, but it is also bringing innovation by implementing AI-based products like Secure AI Agents and CORA AI. While CYBR’s Secure AI Agent solution is designed to protect the AI Agents deployed by CyberArk’s enterprise customers from prompt injection, credential leakage, and permission abuse, CORA AI serves as the intelligence engine embedded inside the Secure AI Agent solution.
CORA AI and Secure AI Agents integration within CyberArk’s identity security platform enables it to secure a full spectrum of identities, including human, AI and machine. Furthermore, CYBR is also expanding its capabilities through inorganic growth. CYBR’s acquisitions of Zilla Security and Venafi have expanded its expertise in identity governance and machine identity. The acquisitions also enhanced its recurring revenues and market share.
These emerging opportunities provide ample space to grow in the cybersecurity space. The Zacks Consensus Estimate for CYBR’s 2025 and 2026 revenue growth rate indicates 31% and 19% rise, respectively. The Zacks Consensus Estimates for CYBR’s bottom line suggests growth rates of 26.4% and 25%, respectively.
Image Source: Zacks Investment Research
The Case for Zscaler Stock
Zscaler is employing multiple strategies to capitalize on the growing cybersecurity market. Zscaler’s latest bets include Zero Trust Everywhere, Zero Trust for Cloud workloads, Zero Trust for Branches and agentic SecOps, which might prove to be a wildcard for the company’s rapid growth in the future.
In the third quarter of fiscal 2025, Zscaler reported more than 210 Zero Trust Everywhere enterprises, representing sequential growth of 60%. Zscaler aims to exceed 390 customers by the end of fiscal 2026. In the ITOps and SecOps business, Zscaler rolled out ZDX Copilot, Risk360, Business Insights, Unified Vulnerability Management, Identity Threat Detection, and Cyber Asset Attack Surface Management. These features provide ZS opportunities to grow in multiple directions.
However, since ZS operates in a highly competitive cybersecurity space, the company has to invest heavily in sales and marketing (S&M) and research and development (R&D), squeezing near-term profitability. Over the past few years, Zscaler’s S&M and R&D expenses have both been in double digits.
While S&M expenses were mainly driven by increasing the sales force, investment in R&D remained a top priority for Zscaler. Over the past couple of years, it has almost doubled its R&D expenses to improve the design, architecture, operation and quality of its cloud platform. Zscaler’s fiscal 2026 earnings have been pegged at $3.08, indicating a year-over-year decline of 3.5%.
Image Source: Zacks Investment Research
CYBR vs. ZS: Price Performance & Valuation
Year to date, CyberArk shares have jumped 19.6% and shares of Zscaler have surged 74.4%.
Image Source: Zacks Investment Research
CyberArk is trading at a forward sales multiple of 13.6X, higher than Zscaler’s 6.65X. CyberArk does seem pricey compared with Zscaler. However, CYBR’s valuations also reflect higher growth expectations for the company.
Image Source: Zacks Investment Research
Conclusion: Buy CyberArk Stock Right Now
Both Zscaler and CyberArk are key players in the cybersecurity space, but Zscaler is facing near-term challenges, including rising operating expenses and shrinking margins. In contrast, CyberArk is delivering robust growth, expanding through acquisitions, and innovating in identity and AI security.
Currently, CyberArk carries a Zacks Rank #2 (Buy), making the stock a stronger pick compared with Zscaler, which has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.