Zscaler, Inc. reported a 25% year-over-year revenue increase to $850.5 million for Q3 FY2026, alongside non-GAAP earnings per share of $1.08 and annual recurring revenues of $3.53 billion. Despite this growth, Zscaler’s growth rate is slowing, with projections of only 16% revenue growth for FY2027.
Conversely, Okta, Inc. experienced an 11% revenue rise to $765 million in Q1 FY2027, accompanied by a 6% increase in non-GAAP EPS to 91 cents. Okta is focusing on AI-agent security, launching products like Okta for AI Agents. While its growth rate is lower compared to Zscaler’s, analysts regard Okta’s business as more stable, with a valuation multiple of 35.09 compared to Zscaler’s 39.94.
Currently, Okta carries a Zacks Rank #2 (Buy) and is seen as a better investment option than Zscaler, which has a Zacks Rank #3 (Hold). Okta’s lower valuation, steadier growth outlook, and positioning in the AI market contribute to its favorable risk-reward profile.
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