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Stock Comparison · Industry comparison · Software - Infrastructure

Confluent vs Zscaler: Which Stock Looks Stronger in 2026?

Zscaler holds the cleaner structural position, with profitability as the main driver and valuation adding further support. Confluent still has the edge on growth, which keeps the comparison from looking entirely one-sided. In the market, Confluent carries the stronger setup — intact trend against Zscaler's broken trend. That leaves a split case: the structural lead stays with Zscaler, but the market is not currently confirming it.

The comparison is based on similar long-term financial trajectories, not sector labels. Both peer scores are relative to the Russell 1000 universe, making them directly comparable.

Updated 2026-05-17

The lead is spread across profitability and valuation, rather than sitting in one isolated gap. The overall score gap is 17 points in favour of Zscaler, Inc..

INDUSTRY COMPARISON

Both operate in: Software - Infrastructure

This comparison is based on industry proximity, not on functional trajectory similarity. CFLT and ZS share the same industry classification.

For a similarity-based comparison, see how Confluent and Zscaler each position within their functional peer groups in AssetNext.

Peer-Relative Score
CFLT
Confluent, Inc.
30
Peer-Score
Signal qualityHigh
Peer basis: Russell 1000
vs
ZS
Zscaler, Inc.
47
Peer-Score
Signal qualitylow
Peer basis: Russell 1000

Scores reflect position relative to comparable companies with similar long-term financial trajectories.

The largest gaps do not all point in the same direction.

Dimension spread: CFLT vs ZS Profitability 9 44 Stability 21 40 Valuation 45 66 Growth 50 32 CFLT ZS
Gap Ranking
#1 Profitability +35
#2 Valuation +21
#3 Stability +19
#4 Growth +18
Price Setup

Left means cheaper relative valuation. Higher means stronger structure.

Price setup map for CFLT and ZS Stronger + cheaper Stronger + richer Weaker + cheaper Weaker + richer CFLTZS Relative valuation Structural strength

Zscaler, Inc. looks stronger both structurally and on relative valuation.

Valuation position uses Forward P/E where available.

Entry today — historical context

Where CFLT and ZS each sit in their own 4.8-year price and valuation history.

BASED ON 4.8-YEAR HISTORY CFLT Elevated · below norm 0th 50th 100th 41 pct gap ZS Lower · below norm 0th 50th 100th 70th 30th
Today ZS sits in the lower-middle of its own 5-year history (30th percentile), while CFLT sits higher in its own history (70th). Within each stock's own 5-year context, ZS is at a historically more favourable entry position than CFLT. This reflects entry timing, not which company is structurally stronger — peer-relative analysis is a separate question addressed above.

Describes historical entry positioning only. Descriptive — not investment advice.

Relative Position vs Comparable Companies
Profitability
Zscaler, Inc. sits higher in the group on profitability, adding to the overall structural advantage.
Valuation
Both rank well on valuation, but Zscaler, Inc. still holds a clear edge.
Profitability — Dominant Gap
CFLT
9
ZS
44
Gap+35in favour of ZS

The profitability lead is mainly driven by a 21.3-point operating margin advantage.

What keeps the gap from being one-sided

Growth still leans toward Confluent, Inc., so the lead is real without reading as one-way.

What this means for the comparison

Profitability is the clearest driver of the lead, with valuation adding further support — though growth still provides a real counterweight.

Explore full peer positioning in AssetNext

Break down the CFLT vs ZS comparison across all dimensions with the full interactive tool.

Explore full breakdown →
Similar profitability-and-valuation comparisons

Explore how CFLT and ZS each compare against other companies in their peer groups.

Rule-based, descriptive analysis only. Derived from peer percentile dimensions. Not investment advice. Peer groups are determined algorithmically based on structural similarity — not by sector classification alone.

How AssetNext Peer Scores Work

AssetNext scores reflect each company's structural position within its functional peer group — not a ranking against all stocks simultaneously. Peers are identified by similarity across eight financial dimensions, including revenue growth trajectory, margin structure, capital intensity, and earnings stability. A score of 75 means the company ranks in the top quartile within its own peer group, not the entire market.

Four dimension scores drive the overall peer score: Growth (revenue trajectory and expansion dynamics), Quality (margin structure and capital efficiency), Valuation (peer-relative pricing on standard multiples), and Stability (earnings consistency and financial predictability). Each dimension is scored 0–100 relative to the peer group, then combined into an overall peer score using equal weighting.

Because scores are peer-relative, the same company can have slightly different scores in different index universes. On comparison pages, both companies are shown within their shared peer universe wherever possible — so the scores are directly comparable. The peer basis is stated on each score card.

Scores are recalculated periodically as underlying financial data is updated. All analysis is descriptive and rule-based — AssetNext describes structural realities and never issues buy, sell or hold recommendations.