Quick Read – ZS posted its ninth straight EPS beat with 25% revenue growth, yet trades 42% lower year to date while PANW surged 48% on the same AI security demand thesis. – Chaudhry warns AI agents will replace humans as cybersecurity’s weakest link, operating at machine speed…
th minimal oversight and enabling data theft within minutes. – Zscaler’s AI Protect product crossed $100 million in bookings, though management expects no meaningful agent-driven revenue until fiscal 2027 and has guided for growth of 16 to 17 percent. – Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Palo Alto Networks didn’t make the cut. Grab the names FREE today
Zscaler (NASDAQ: ZS) founder and CEO Jay Chaudhry used the company’s latest earnings call to sharpen a thesis becoming the bull case for cybersecurity: autonomous AI agents will soon outnumber human users on corporate networks, and each needs security. On a recent Motley Fool Money segment titled The Invisible Layer Protecting the World’s Biggest Companies, the host framed it directly: “Today we protect more than 50 million users, and tomorrow that could be millions or billions of agents that are doing work on behalf of organizations.” Chaudhry tightened the timeline during the Q3 FY2026 call. “We expect it will not be long before millions of AI agents have access to organizations’ mission-critical applications and sensitive data,” he said. “Today, users are the weakest link in cybersecurity. But soon, AI agents will be the weakest link, because they operate at far greater speed and have far less oversight.
Even a single compromised agent can move to data theft in minutes.” Why the “billions of agents” framing matters now Zscaler reported fiscal Q3 results on May 26, 2026, posting revenue of $850.48 million, up 25.43% year over year, with non-GAAP EPS of $1.08, the company’s ninth consecutive EPS beat. Annual recurring revenue reached $3.525 billion on 25% growth, and management raised…