Zscaler Takes Prudent Approach to Fiscal 2027 Outlook, Oppenheimer Says

10:59 AM EDT, 09/04/2026 (MT Newswires) -- Zscaler's (ZS) management has taken a prudent approach to its fiscal 2027 outlook by only marginally increasing expectations, Oppenheimer said in a Friday research note. The company expects fiscal 2027 annual recurring revenue between $4.40 billion and $4.43 billion, along with revenue in the range of $3.91 billion to $3.94 billion and adjusted net income per share of $4.86 to $4.90. Oppenheimer remains bullish on the company, expecting better execution against "achievable" fiscal 2027 targets, and said that Zscaler's new offerings like security for artificial intelligence, data security, and non-seat-based metered solutions are showing solid traction, while Z-Flex adoption is scaling. While the company finished fiscal 2026 well, limited visibility into factors like sales rep productivity through leadership changes, AI portfolio contribution to fiscal 2027, legacy Red Canary dynamics, and competition may limit investor confidence in the near term, the brokerage said. Oppenheimer maintained its outperform rating, with a $250 price target. Shares of Zscaler were down 4.1% in Friday trading. Price: 170.35, Change: -7.45, Percent Change: -4.19