Zscaler’s All-In on Zero Trust: Cloud-Native, AI-Backed, and Built for What’s Next
Zscaler is no longer just offering security products it’s helping companies rethink how security should work in a world where data, users, and applications move freely across borders, clouds, and devices. FY2024 made that clear.
With $2.16 billion in revenue, is now positioned among high growth stocks, having closed the year with a 34% annual growth rate, despite posting a net loss of $57.7 million. That might raise eyebrows at first glance, but when you look deeper, the company’s strategy is anything but short-sighted.
Why Perimeter Security Is Dead
Zscaler built its name on a simple truth: the old perimeter-based model doesn’t hold up anymore. As more business apps move to SaaS and users go remote or hybrid, trying to secure everything behind a firewall has become impractical.
That’s where Zscaler’s Zero Trust Exchange steps in. Instead of putting users “inside” a network, it treats every access request like a potential risk inspecting, authorizing, and connecting based on policy, not location. This setup isn’t theoretical; it processes over 500 billion transactions a day and blocks around 150 million threats daily.
Security That Adapts with the Data
One area seeing particularly sharp traction is Zscaler’s push toward context-aware data protection across all business environments. Originally, these controls were most vital in data-intensive sectors like banking and healthcare. But today, with the explosion of SaaS platforms and enterprise GenAI tools, sensitive data is moving across industries faster than ever and Zscaler is scaling protection to meet it.
The company’s approach is to embed intelligent policy controls that travel with the data, rather than relying on traditional on-prem barriers. This shift aligns perfectly with how modern businesses work decentralized, mobile, and constantly online.
Global Reach, Real Customers
With more than 8,650 customers including about 35% of the Forbes Global 2000 Zscaler’s platform isn’t a niche product anymore. It serves a wide mix of industries, from finance and healthcare to manufacturing and education, all through its 160+ global data centers.
The model works especially well for companies that want to streamline IT, cut hardware costs, and enable secure access for remote workers, contractors, and connected devices all without sacrificing performance or control.
Losses Continue, But the Bet Is Clear
While Zscaler has reported net losses every year and accumulated a deficit of over $1.1 billion it’s not without a clear reason. The company is pouring money into R&D ($499.8 million in FY24) and expanding its engineering and sales teams globally, especially in India, Canada, and Israel.
Zscaler’s focus right now isn’t short-term margin it’s market capture. And considering the rate at which companies are moving away from appliance-based security toward cloud-native platforms, the window to lead is open.
As more companies rethink their security models, Zscaler looks increasingly like the blueprint, not the alternative.
Oracle Goes All-In on AI Cloud: AMD GPUs, & a $25B Infrastructure Blitz
Oracle isn’t just modernizing its repositioning itself at the heart of enterprise AI. With fresh momentum in cloud consumption, strategic investments in cutting-edge hardware, and a growing cash cushion, the company’s transformation is getting harder to ignore.
AMD Chips Powering the Next Wave
In a move that signals serious AI intent, Oracle has started deploying AMD’s Instinct MI355X GPUs into its Oracle Cloud Infrastructure. The chips promise over 2x improvement in price-performance over the prior generation a major gain for clients running large-scale AI models.
The goal? Make OCI not just competitive but preferred for training and inference workloads especially as demand spikes for agentic and generative AI capabilities. This isn’t just hardware it’s positioning.
Cloud Footprint Expands as Capex Surges
Oracle, one of the best growth stocks to buy now, isn’t only upgrading tech it’s aggressively building out global reach. With 23 cloud regions live and 47 more in development, the company is scaling at a hyperscaler’s pace. OCI’s growth story is now backed by real numbers: in Q3 FY25 alone, cloud services and license support brought in over $11 billion, a clear leap from last year.
To support the surge, Oracle poured $9.1 billion into infrastructure in Q4, pushing FY25 capital expenditure to $21.2 billion. It doesn’t stop there another $25 billion is earmarked for FY26. This level of reinvestment signals confidence in long-term cloud demand, especially in AI-native workloads.
Strong Financial Core, Bigger Bets Ahead
Oracle’s financial backbone remains solid. The company generated $14.6 billion in operating cash flow across nine months, while maintaining $17.4 billion in cash reserves. Despite heavy investments, liquidity has strengthened up significantly from $10.4 billion at the end of May 2024.
The company’s recent extension of server life cycles added an unexpected boost: $136 million in net income in a single quarter a subtle but smart operational call that padded profits while reducing replacement costs.
Looking Forward
Oracle’s pivot to AI-ready cloud is no longer just a roadmap it’s happening. With rising OCI revenues, deeper GPU integration, and bold forward investment, the company is aligning itself with where enterprise computing is headed.
So far, the market’s buying in, and Oracle’s 25% YTD rally might just be the beginning of a bigger re-rating story
(Source: Company Announcements)
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