What's Driving Zscaler Stock Higher Wednesday?
Key takeaways
- Zscaler’s NVIDIA partnership and upbeat outlook are driving a 7% rally, keeping the stock well above its moving averages and near a key resistance level.
- Zscaler shares up 7.40% to $230.38
- NVIDIA partnership announced
- Q1 revenue guidance $935‑$939 million
What happened
The collaboration aims to secure autonomous AI agents in enterprise environments. Zscaler also reaffirmed its fiscal 2027 outlook, projecting revenue of $3.908‑$3.938 billion and ARR of $4.396‑$4.426 billion, both slightly above consensus estimates.
Why it matters
The NVIDIA partnership positions Zscaler at the forefront of AI‑agent security, a growing market as enterprises deploy more autonomous agents. The reaffirmed guidance signals confidence in continued growth toward a $10 billion ARR target, supporting the company’s valuation.
Short-term and longer-term
Short-term. Over the next few days, Zscaler’s price may test the $237 resistance; a break could signal a new rally, while a pullback to the $187.50 support could indicate short‑term consolidation.
Longer-term. For investors, the partnership with NVIDIA and the reaffirmed fiscal outlook suggest a continued upward trajectory toward a $10 billion ARR target.