Zscaler's Z-Flex Surges: Can Flexible Deals Boost Customer Adoption?
Zscaler's Z-Flex flexible contract offering generated over $770 million in Q4 TCV with 60% sequential growth, driving 30% average ARR uplift for customers. However, the company expects slower fiscal 2027 revenue growth of 16.6%-17.5%, and its stock has declined 24.9% year-to-date while trading at a significant valuation discount. Competitors Palo Alto Networks and CrowdStrike are also leveraging platform strategies to drive customer adoption.