IBM
ZS
Investor Day came with a pep talk
Zscaler stepped onto the stage and kept the optimism flowing. The cybersecurity company reaffirmed its first-quarter outlook and its fiscal 2027 targets, with revenue and non-GAAP earnings both coming in above Street estimates. That’s the kind of message that tends to wake up analysts and make them reach for the price-target calculator.
Wall Street heard the message
Needham, Morgan Stanley, Cantor Fitzgerald, Baird, Wedbush, Guggenheim, and Evercore all tweaked their price targets higher, while mostly keeping their existing ratings in place. The headline move: Needham went from $215 to $255 with a Buy rating, which is basically the analyst version of, ‘I brought you a bigger vote of confidence.’
Why investors should care
Zscaler’s guidance suggests the growth story still has legs, with first-quarter revenue expected around $935 million to $939 million and fiscal 2027 revenue projected between $3.908 billion and $3.938 billion. In a market that loves a good growth narrative almost as much as a free lunch, that matters.
And then there’s the IBM and Red Hat collaboration, which adds another shiny object for investors to watch. Partnerships don’t always move the stock, but they do help tell the story that Zscaler is trying to become more than just a standalone security vendor.
Big picture: when a company says growth is on track and Wall Street responds by lifting targets, that’s usually not a subtle signal.