ZS
Zscaler Inc.
Is ZS Halal?
Cloud-security SaaS is generally permissible, but April 2026 identifiable liquidity is above the examined one-third total-assets limit.
What You Should Know
Zscaler provides zero-trust and cloud-based security services, which are generally permissible defensive technology. Its April 30, 2026 filing shows debt at 23.95% of total assets and receivables plus cash at 24.13%, while cash plus short-term investments is 49.86%. Reported interest income was 4.00% of quarterly revenue, below the examined 5% income benchmark, but the liquidity result remains methodology-dependent.
⚠️ Concerns
- •Cash plus short-term investments were 49.86% of total assets at April 30, 2026
- •Convertible senior notes were 23.95% of total assets
- •Interest income was 4.00% of quarterly revenue
- •Cybersecurity, government use, surveillance, privacy, data handling, customer concentration and responsible AI require qualitative review
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-04-30; calculated 2026-07-14.
1,700 / 7,098
3,539 / 7,098
1,712 / 7,098
34 / 850
- Financial
- Fails
- Overall
- Fails
Liquidity/assets is 49.86%, above the examined 33.333% limit; debt/assets is 23.95%, receivables plus cash/assets is 24.13%, and disclosed interest income is 4.00%.
- Financial
- Fails
- Overall
- Fails
Liquidity/assets is 49.86%, above the examined 33.33% total-assets limit; debt and receivables plus cash pass. This is not an index-membership claim.
- Financial
- Fails
- Overall
- Fails
Identifiable liquidity/assets is 49.86%, above the examined 33% financial limit; this is a calculation against SAC ratios, not an official classification.
- Financial
- Not calculated
- Overall
- Not calculated
A properly licensed and reproducible historical market-cap series is not stored, so these methods are not estimated from a current spot price.
Business-activity disclosure
Zscaler provides cloud-delivered zero-trust, network, data, identity and security operations services. Defensive cybersecurity software is generally permissible.
Limitation: The filing does not classify customers, government use, surveillance context or downstream use; those issues remain qualitative rather than an invented prohibited-revenue percentage.
Purification
Disclosed interest income is 4.00% of quarterly revenue and remains below the examined income benchmark, but ZakatInvest does not prescribe a fixed purification percentage.
Inputs, assumptions and primary sources
- Amounts are USD millions from Zscaler's April 30, 2026 Form 10-Q and rounded to the nearest million.
- Debt is the reported $1,700 million carrying value of convertible senior notes; operating lease liabilities are excluded from conventional debt.
- Cash is $982 million and short-term investments are $2,557 million, principally corporate debt securities; these are treated as identifiable interest-bearing securities.
- Net accounts receivable is $730 million and quarterly revenue is $850 million.
- Reported interest income is $34 million for the three months ended April 30, 2026 and is treated as the disclosed income numerator.
- Zscaler reports cloud-security subscription revenue and no separately identified prohibited operating category in this filing; this is not a claim about every customer use.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
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