Zscaler Likely to See Balanced Fiscal Q3 Results, Oppenheimer Says

MT Newswires Live05-20 23:32

Zscaler's (ZS) upcoming fiscal Q3 results will likely show in line to moderately above-plan performance as well as some divergence between strong performance in the US and mixed performance in Europe, Oppenheimer said in a note Wednesday.

The investment firm noted Zscaler's competitors like Palo Alto (PANW) and Netskope (NTSK) are "increasingly aggressive" in the Secure Access Service Edge, or SASE, market, which "deserves monitoring, but we see faster market expansion rather than share rotation."

Oppenheimer also said consensus estimates for the company's 2027 net new annual recurring revenue seasonal patterns seem to not be aligned with recent low Q1 and higher H2 patterns which should make for a "front-loaded setup and a tougher [fiscal Q1] bar."

Meanwhile, the company may also benefit from product launch catalysts at its Zenith event, which may support the platform narrative into fiscal 2027, the note said.

Oppenheimer kept its outperform rating and $250 price target on Zscaler.

Price: 172.49, Change: -2.76, Percent Change: -1.57

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