Zscaler Says Agentic AI Could Be Its Biggest Opportunity Ever
Key takeaways
- Zscaler’s reaffirmed guidance and AI focus bolster its growth narrative, lifting the stock and analyst sentiment.
- First‑quarter revenue guidance: $935‑$939 million
- First‑quarter non‑GAAP earnings: $1.15‑$1.16 per share
- Fiscal 2027 revenue guidance: $3.908‑$3.938 billion
What happened
Zscaler, Inc. (NASDAQ: ZS) reaffirmed its first‑quarter and fiscal‑2027 guidance at Investor Day, keeping revenue and earnings forecasts above analyst estimates. The company highlighted agentic artificial intelligence as a major long‑term growth driver and announced a partnership with IBM and Red Hat to protect private applications during patch windows.
Why it matters
The reaffirmation signals management confidence in continued revenue and margin growth, reinforcing an upbeat consensus. Highlighting agentic AI positions Zscaler at the forefront of a rapidly expanding security niche, potentially driving future top‑line expansion. The IBM/Red Hat collaboration expands Zscaler’s…
Short-term and longer-term
Short-term. In the next few days, Zscaler’s stock may react to the AI partnership announcement and the reaffirmed guidance.
Longer-term. Over the coming months, the AI focus and partnership with IBM/Red Hat could drive new customer acquisition and higher ARR, moving Zscaler toward its $10 billion ARR goal.