Canadian Halal Investor.

NASDAQ Shariah screener · October 2026

Is Zscaler, Inc. (ZS) Halal?

PASS

Zscaler, Inc. · NASDAQ: ZS · Technology

The short answer

Yes - Zscaler passes all three Shariah gates in this screen. Its business is a permissible one: a cloud-native zero trust cybersecurity platform (founded 2007, San Jose; ~11,000 customers) with no haram segments. Its only debt is the 0.0% convertible senior notes due 2028, carried at $1,696.4M against a ~$31.58B market cap (Finnhub, October 2, 2026) - about 5.37%, well under the ~33% ceiling. Its separately disclosed interest income of $136.1M is about 4.06% of its $3,352.5M FY2026 revenue, under the 5% ceiling (close enough to watch in future periods). Zoya rates ZS Shariah-compliant (September 2026) and Musaffa rates it halal (October 2026).

Gate 1 — Business activity: PASS

Gate 1 — business activity: PASS. Zscaler, Inc. (NASDAQ: ZS), headquartered in San Jose, California, describes itself in its FY2026 Form 10-K (Item 1, Business) as "the cybersecurity platform for the AI era," delivering "a comprehensive, cloud-native zero trust platform that minimizes the attack surface of an enterprise and eliminates lateral threat movement, enabling security at the scale and speed of AI." Founded in 2007, it serves about 11,000 customers including over 40% of the Forbes Global 2000, processing more than 750 billion transactions per day through over 200 global data centers.

Business screen (factual, from the filing): Zscaler is a software and services business — subscriptions to a cloud security platform. It is not an interest-based lender and its segments show no involvement in tobacco, gambling, alcohol or pork production. Gate 1 passes. Facts only.

Gate 2 — Debt and cash: PASS

Gate 2 — interest-bearing debt: PASS (5.37%, ceiling ~33%). Per Zscaler's FY2026 Form 10-K (consolidated balance sheet at July 31, 2026), the company's only debt is its 0.0% Convertible Senior Notes due 2028: $1,725 million in aggregate principal issued in July 2025, carried at $1,696.4 million net of debt issuance costs and fair value hedge adjustments (Note 10, Convertible Senior Notes). The earlier 2025 Notes ($1,150 million, 0.125%) were repaid during FY2025. Operating lease liabilities ($159.5 million total) are excluded — they are not interest-bearing debt.

$1,696.4 million of interest-bearing debt against a market capitalization of about $31.58 billion (Finnhub, October 2, 2026; $198.78 per share) is 5.37%, well under the ~33% ceiling. Cash and cash equivalents of $928.4 million plus short-term investments of $2,545.8 million total about $3,474.2 million, or about 11.00% of market cap. Gate 2 passes. Facts only.

Gate 3 — Non-compliant income: PASS

Gate 3 — non-compliant income: PASS (4.06%, ceiling 5%). Zscaler's FY2026 Form 10-K income statement separately discloses interest income of $136.1 million for the fiscal year ended July 31, 2026, against revenue of $3,352.5 million — about 4.06% of revenue, under the 5% non-compliant income ceiling. Interest expense was $11.8 million for the year.

Note: at 4.06% this ratio sits close to the 5% ceiling and bears watching in future periods. Gate 3 passes. Facts only.

Key figures used

Frequently asked questions

What does Zscaler do?

Zscaler, Inc. (NASDAQ: ZS) is a cybersecurity company headquartered in San Jose, California. Per its FY2026 Form 10-K (Item 1, Business), it describes itself as 'the cybersecurity platform for the AI era,' delivering a cloud-native zero trust platform that minimizes the attack surface of an enterprise and eliminates lateral threat movement. Founded in 2007 on the vision that the internet would become the new corporate network, its platform is distributed across more than 160 public exchanges globally, blocking over 225 million threats per day. It serves about 11,000 customers, including over 40% of the Forbes Global 2000, and reported fiscal 2026 revenue of $3,352.5 million, up 25% year over year.

Is Zscaler's business Shariah compliant?

Yes. Zscaler operates a cloud-based zero trust cybersecurity platform - a software and services business with no interest-based lending and no involvement in tobacco, gambling, alcohol or pork production - so it passes this screener's business-activity gate. The FY2026 Form 10-K shows no haram revenue segments; revenue comes from subscriptions to its security platform. This is a factual screen, not a religious ruling - consult a qualified scholar for personal rulings.

How much interest-bearing debt does Zscaler have?

Per Zscaler's FY2026 Form 10-K (consolidated balance sheet at July 31, 2026), the company's only debt is its 0.0% Convertible Senior Notes due 2028: $1,725 million in aggregate principal issued in July 2025, carried at $1,696.4 million net of debt issuance costs and fair value hedge adjustments (Note 10, Convertible Senior Notes). The earlier 2025 Notes ($1,150 million, 0.125%) were repaid during FY2025. Operating lease liabilities ($159.5 million total) are excluded as they are not interest-bearing debt. $1,696.4 million against a market cap of about $31.58 billion (Finnhub, October 2, 2026; $198.78 per share) is about 5.37% - well under the ~33% ceiling. Gate 2 passes.

How much interest income does Zscaler earn?

Zscaler's FY2026 Form 10-K income statement separately discloses interest income of $136.1 million for the fiscal year ended July 31, 2026, against revenue of $3,352.5 million - about 4.06% of revenue, under the 5% non-compliant income ceiling. Interest expense was $11.8 million for the year. This ratio is close to the ceiling, so it bears watching in future periods. Gate 3 passes.

Do Zoya, Musaffa, or ShariaPortfolio cover Zscaler?

Zoya covers ZS and flags it as Shariah-compliant as of September 2026 (zoya.finance/stocks/zs) - it rates Zscaler halal, citing the same FY2026 figures ($3,352,523,000 revenue and $136,132,000 interest income, 4.06%). Musaffa covers ZS and classifies it as halal as of October 2026 under its AAOIFI methodology (musaffa.com/stock/ZS/). I could not verify a ShariaPortfolio screener page for ZS from public sources. All coverage statements that could be verified are consistent with this page's own PASS outcome. Third-party screeners apply different assumptions and update on different schedules - always check the latest screening before investing.

Sources

Screened 2026-10-02 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.

Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).