Zscaler acquires Red Canary to enhance cloud security through unified operations and advanced AI-driven threat management.
Quiver AI Summary
Zscaler, Inc. has completed the acquisition of Red Canary, aiming to enhance cloud security through a unified Security Operations approach that combines advanced exposure management and AI-driven threat management. Initially, Red Canary will function as a separate business unit under Zscaler, leveraging its scale and resources to innovate its Security Operations Center capabilities. The integration of Red Canary’s AI technology with Zscaler's Data Fabric for Security will create a comprehensive SOC solution, enabling customers to operate their own SOCs more effectively and assisting partners in providing robust managed SOC services. This acquisition is expected to improve threat detection and response efficiency, as Red Canary's expertise in security operations will complement Zscaler’s Zero Trust Exchange platform. Both companies expressed optimism about the potential to enhance cybersecurity operations for their customers and the broader security community. Red Canary will continue to operate under its brand as a Zscaler company.
Potential Positives
- Zscaler's acquisition of Red Canary enables the integration of advanced AI-driven threat management with its existing Zero Trust security platform, enhancing its overall security offerings.
- The acquisition allows Zscaler to provide one of the industry's most comprehensive Security Operations Center (SOC) solutions, improving customer capabilities in threat detection and response.
- Combining Red Canary’s capabilities with Zscaler’s extensive threat intelligence from 500 billion daily transactions positions the company to significantly improve customers' cyber defense strategies.
- Red Canary will continue to innovate and expand its advanced SOC capabilities while benefiting from Zscaler's resources, ensuring continuity and growth for both organizations.
Potential Negatives
- The acquisition of Red Canary highlights potential integration challenges, as Zscaler may struggle to successfully incorporate Red Canary's technology into its cloud platform.
- The company acknowledges risks related to the potential impact on Red Canary's existing business and the retention of its employees, suggesting possible instability post-acquisition.
- The forward-looking statements warn that actual results could differ materially from what is projected, indicating uncertainty regarding the anticipated benefits of the acquisition.
FAQ
What did Zscaler announce on August 1, 2025?
Zscaler announced its acquisition of Red Canary, enhancing its cloud security offerings.
How will Red Canary operate after the acquisition?
Red Canary will initially operate as a separate business unit within Zscaler.
What benefits will the acquisition provide to customers?
The acquisition will deliver unified Security Operations and enhance threat detection capabilities.
What technology will Zscaler integrate with Red Canary's offerings?
Zscaler will integrate Red Canary’s agentic AI technology with its Data Fabric for Security.
What impact will this acquisition have on cybersecurity practices?
This acquisition aims to simplify and unify security operations, improving threat detection and response times.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$ZS Insider Trading Activity
$ZS insiders have traded $ZS stock on the open market 61 times in the past 6 months. Of those trades, 0 have been purchases and 61 have been sales.
Here’s a breakdown of recent trading of $ZS stock by insiders over the last 6 months:
- AJAY MANGAL has made 0 purchases and 24 sales selling 310,480 shares for an estimated $74,334,707.
- CHARLES H GIANCARLO has made 0 purchases and 8 sales selling 67,824 shares for an estimated $20,416,445.
- SYAM NAIR (CTO) has made 0 purchases and 3 sales selling 36,364 shares for an estimated $9,138,732.
- ANDREW WILLIAM FRASER BROWN has made 0 purchases and 3 sales selling 30,333 shares for an estimated $8,093,118.
- ROBERT SCHLOSSMAN (Chief Legal Officer) has made 0 purchases and 12 sales selling 21,617 shares for an estimated $5,683,048.
- MICHAEL J. RICH (CRO and President of WW Sales) has made 0 purchases and 3 sales selling 17,853 shares for an estimated $5,039,983.
- ADAM GELLER (Chief Product Officer) has made 0 purchases and 4 sales selling 6,671 shares for an estimated $2,037,037.
- JAGTAR SINGH CHAUDHRY (CEO & Chairman) has made 0 purchases and 2 sales selling 5,004 shares for an estimated $1,294,407.
- RAJ JUDGE (EVP, Corp. Strategy & Ventures) sold 2,957 shares for an estimated $898,047
- REMO CANESSA (Chief Financial Officer) sold 3,721 shares for an estimated $741,019
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$ZS Hedge Fund Activity
We have seen 471 institutional investors add shares of $ZS stock to their portfolio, and 335 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- T. ROWE PRICE INVESTMENT MANAGEMENT, INC. added 2,603,675 shares (+inf%) to their portfolio in Q1 2025, for an estimated $516,621,193
- MARSHALL WACE, LLP added 1,054,589 shares (+266.3%) to their portfolio in Q1 2025, for an estimated $209,251,549
- WELLINGTON MANAGEMENT GROUP LLP added 1,031,462 shares (+488.0%) to their portfolio in Q1 2025, for an estimated $204,662,690
- VIKING GLOBAL INVESTORS LP removed 914,969 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $181,548,148
- HSBC HOLDINGS PLC added 617,319 shares (+79.0%) to their portfolio in Q1 2025, for an estimated $122,488,435
- GOLDMAN SACHS GROUP INC added 568,183 shares (+22.9%) to their portfolio in Q1 2025, for an estimated $112,738,870
- UBS AM, A DISTINCT BUSINESS UNIT OF UBS ASSET MANAGEMENT AMERICAS LLC added 527,041 shares (+20.3%) to their portfolio in Q1 2025, for an estimated $104,575,475
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
$ZS Analyst Ratings
Wall Street analysts have issued reports on $ZS in the last several months. We have seen 25 firms issue buy ratings on the stock, and 0 firms issue sell ratings.
Here are some recent analyst ratings:
- JMP Securities issued a "Market Outperform" rating on 07/01/2025
- UBS issued a "Buy" rating on 06/27/2025
- JP Morgan issued a "Overweight" rating on 06/16/2025
- Wells Fargo issued a "Overweight" rating on 06/13/2025
- Cantor Fitzgerald issued a "Overweight" rating on 06/11/2025
- B of A Securities issued a "Buy" rating on 06/09/2025
- Scotiabank issued a "Sector Outperform" rating on 06/06/2025
To track analyst ratings and price targets for $ZS, check out Quiver Quantitative's $ZS forecast page.
$ZS Price Targets
Multiple analysts have issued price targets for $ZS recently. We have seen 30 analysts offer price targets for $ZS in the last 6 months, with a median target of $307.5.
Here are some recent targets:
- Trevor Walsh from JMP Securities set a target price of $355.0 on 07/01/2025
- Roger Boyd from UBS set a target price of $365.0 on 06/27/2025
- Brian Essex from JP Morgan set a target price of $348.0 on 06/16/2025
- Andrew Nowinski from Wells Fargo set a target price of $385.0 on 06/13/2025
- Jonathan Ruykhaver from Cantor Fitzgerald set a target price of $340.0 on 06/11/2025
- Tal Liani from B of A Securities set a target price of $340.0 on 06/09/2025
- Patrick Colville from Scotiabank set a target price of $360.0 on 06/06/2025
Full Release
SAN JOSE, Calif., Aug. 01, 2025 (GLOBE NEWSWIRE) -- Zscaler, Inc. (NASDAQ: ZS), the leader in cloud security, today announced it has completed its acquisition of Red Canary. Together, the companies will deliver unified Security Operations, combining sophisticated exposure management with agentic AI-driven threat management.
To ensure continuity for its customers, Red Canary will initially operate as a separate business unit within Zscaler. It will benefit from Zscaler's scale and resources while continuing to innovate its advanced Security Operations Center (SOC) capabilities. Zscaler will integrate Red Canary’s agentic AI technology with its Data Fabric for Security to deliver one of the industry’s most comprehensive SOC solutions—enabling customers to run their own SOCs more efficiently and allowing partners to offer powerful managed SOC services based on this foundation.
“We’re delighted to officially welcome Red Canary to the Zscaler family,” said Jay Chaudhry, CEO, Chairman, and Founder of Zscaler. “By combining Red Canary’s domain expertise in advanced SOC operations with detections, signals, and context from 500 billion daily transactions in the Zscaler Zero Trust Exchange TM platform, we will deliver solutions that help customers strengthen their cyber defenses and efficiently advance their security operations. Following the successful integration, Zscaler will offer the industry’s most robust security platform that combines the power of Zero Trust with automated security operations, and provides protection that spans communications, exposure management, and threat detection, investigation, and response.”
Zscaler’s security operations solutions streamline detection and remediation of exposures and threats. The 10 years of threat intelligence Red Canary has amassed, along with its automated runbooks and agentic AI operations, will yield combined solutions that enable organizations to confidently detect, triage, investigate, and respond to cyber threats faster and with greater precision.
“This is a massive step forward in our mission to improve security operations, not just for our customers, but for the entire cybersecurity community,” said Brian Beyer, CEO of Red Canary. “As part of Zscaler, we’re bringing together Red Canary’s proven AI-powered threat detection and deep security operations expertise with Zscaler’s leading zero trust platform. Together, we will empower customers and partners to find and stop threats faster—dramatically reducing investigation and response times. By simplifying and unifying security operations, we’re setting a new standard for protecting against threats in an ever-changing landscape."
Following the close of the acquisition, Red Canary will be branded as Red Canary, a Zscaler company.
Forward-Looking Statements
This press release contains forward-looking statements that are based on our management's beliefs and assumptions and on information currently available to our management. These forward-looking statements include the expected benefits and impacts of the proposed acquisition to Zscaler and its customers and plans regarding Red Canary’s capabilities. These forward-looking statements are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. A significant number of factors could cause actual results to differ materially from statements made in this press release, including those factors related to Zscaler’s ability to successfully integrate Red Canary technology into our cloud platform, the potential impact of the acquisition to the existing Red Canary business and the retention of Red Canary’s employees.
Additional risks and uncertainties are set forth in our most recent Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (“SEC”) on May 29, 2025, which is available on our website at ir.zscaler.com and on the SEC's website at www.sec.gov. Any forward-looking statements in this release are based on the limited information currently available to Zscaler as of the date hereof, which is subject to change, and Zscaler will not necessarily update the information, even if new information becomes available in the future.
About Zscaler
Zscaler (NASDAQ: ZS) accelerates digital transformation so customers can be more agile, efficient, resilient, and secure. The Zscaler Zero Trust Exchange™ platform protects thousands of customers from cyberattacks and data loss by securely connecting users, devices, and applications in any location. Distributed across more than 160 data centers globally, the SASE-based Zero Trust Exchange™ is the world’s largest in-line cloud security platform.
Media Contact:
Nick Gonzalez
[email protected]