10 Stocks With Explosive Growth Potential

2. Zscaler Inc. (NASDAQ:ZS)

Zscaler Inc. (NASDAQ:ZS) is one of the stocks with explosive growth potential. On February 26, Zscaler reported FQ2 2026 financial results, with revenue reaching $816 million, a 26% year-over-year increase that exceeded market expectations. The company’s ARR grew 25% to $3.4 billion, driven by momentum in large-scale enterprise deals. Notably, the number of customers contributing over $1 million in ARR rose 18% year-over-year, while the Americas region remained the primary growth engine, accounting for 57% of total revenue.

The company is heavily positioning itself as a leader in the AI security space, having processed nearly 1 trillion AI transactions in 2025. CEO Jay Chaudhry highlighted the launch of ‘AI Protect,’ which is a solution designed to manage shadow AI and prevent data leaks or prompt-injection attacks. Zscaler is also shifting its business model toward metered, non-seat-based usage, which now accounts for over a quarter of new annual contract value.

This shift is supported by the Z-Flex program, which allows large enterprises to swap or activate security modules without new procurement cycles, generating over $290 million in contract value this quarter alone. Strategic acquisitions continue to expand Zscaler Inc.’s (NASDAQ:ZS) platform, including the recent purchase of SquareX to secure unmanaged devices via browser extensions and the integration of Red Canary to support agentic security operations.

Zscaler Inc. (NASDAQ:ZS) operates as a cloud security company worldwide. The company offers cyberthreat protection products, including Zscaler Internet Access, Zscaler Private Access solution, Zero Trust Firewall, Cloud Sandbox, and Zero Trust Browser.