Zscaler Inc. sees a significant boost in its stock price as investors respond to impressive AI-related growth metrics.
Zscaler Inc. (NASDAQ:ZS) is rising today, gaining 3.56% to close at CA$204.32. This uptick follows the company's announcement of a remarkable 50% increase in AI-related bookings, signaling strong demand for its security solutions in the rapidly evolving AI landscape.
Investor takeaway: Investors are optimistic about Zscaler's ability to capitalize on the growing need for AI security, which could drive future revenue growth despite recent challenges.
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Zscaler Inc
ZS.US
ZS.US
Zscaler Inc
WealthAwesomeMarket cap
$31.24B
52W high
$336.99
52W low
$114.63
1W change
+15.34%
Beta
0.95
Analyst Price Targets
Based on 46 analysts covering ZS · as of Sep 17, 2026
Wall Street analysts forecast ZS stock price to rise 8.1% over the next 12 months.
Consensus
Buy4.17 / 5.00
Avg. Target
C$207.18
+8.1% Upside
Current Price
C$191.58
Last close
Analyst Breakdown (46 analysts)
Targets are snapshotted when they change. Unchanged figures keep their original date. Not financial advice.
Wealth Awesome Price Forecast
WA ModelStatistical 90-day price range based on ZS's historical volatility
30-Day Vol
71.4%
Annualized
90-Day Vol
59.4%
Annualized
Trend (90d)
+50.0%
Annualized drift
90d Mean
C$235.89
Expected price
| Horizon | Expected | 68% Range (1σ) |
|---|---|---|
| 30 trading days | C$209.41 | C$163.70 – C$267.89 |
| 60 trading days | C$222.25 | C$156.89 – C$314.86 |
| 90 trading days | C$235.89 | C$153.97 – C$361.37 |
Methodology: Range is calculated using 30-day realized volatility via geometric Brownian motion (log-normal model). 68% band = ±1σ, 95% band = ±2σ. This is a statistical model, not a prediction. Past volatility does not guarantee future results. Not financial advice.
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50% increase in AI-related bookings
Zscaler's Security for AI platform is gaining traction, with AI Protect bookings surpassing $100 million over the past year, highlighting the company's growth potential in this emerging market.
Bull case
Zscaler's AI-related bookings surged by 50% sequentially, showing strong demand for its innovative security solutions. The company is well-positioned to leverage its AI portfolio, with annual recurring revenues rising to $3.77 billion, showcasing its strong market presence.
Bear case
Despite the positive momentum, Zscaler's fiscal 2027 revenue guidance suggests a slowdown to 17% growth, significantly lower than the 25% growth seen in fiscal 2026. Ongoing losses and increased competition in the cybersecurity space may pose risks to its valuation.
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Strong Demand for AI Security Solutions
Zscaler's recent performance highlights a growing trend in the cybersecurity sector, particularly concerning AI security. The company's AI-related bookings saw a remarkable 50% increase, indicating that businesses are increasingly prioritizing security measures as they adopt AI technologies. This trend is expected to continue driving Zscaler's growth as more enterprises recognize the need for robust security frameworks.
Market Response and Future Outlook
The stock's rise today reflects investor confidence in Zscaler's ability to harness the growing demand for AI security. However, the company faces challenges, including a projected slowdown in revenue growth. As Zscaler navigates this competitive landscape, its ability to convert rising interest in AI into sustainable revenue will be critical for its long-term success.
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