What's behind Zscaler's latest stock surge?

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Zscaler rises 3.08% today on guidance

Highlights

Zscaler projects first quarter fiscal 2027 revenue of $935 million to $939 million and full-year revenue of $3.908 billion to $3.938 billion.
For fiscal 2027, non-GAAP operating income is forecast between $924 million and $932 million, with free cash flow margin of 23.0% to 23.5%.
Shares of Zscaler show a strong bullish trend with robust momentum, an 80% probability of further upside, and a projected five-day range of $203.05 to $220.01.

Guidance reaffirmed amid new partnerships and AI security push

Zscaler held its 2026 Investor Day in New York City, where the company reaffirmed its financial guidance for Q1 and full fiscal year 2027. The company projects Q1 FY27 revenue between $935 million and $939 million and expects full-year FY27 revenue of $3.908 billion to $3.938 billion, with annual recurring revenue anticipated at $4.396 billion to $4.426 billion. Non-GAAP operating income is forecast at $924 million to $932 million, and non-GAAP earnings per share are expected to be $4.86 to $4.90, with a free cash flow margin of 23.0% to 23.5%. Zscaler also highlighted ongoing investments and new partnerships, such as its collaboration with IBM and Red Hat to strengthen application security with AI-powered defenses.

Anton Kharitonov, expert at Traders Union, takes a cautious stance despite the recent rally in Zscaler. He notes management's reaffirmed guidance and partnerships, but warns that the bullish momentum may not be sustainable. Kharitonov highlights the risk of possible reversal if support at $203.05 breaks. He sees overbought conditions and consolidation, which could precede a correction if enthusiasm wanes. "I would stay vigilant here, as strong technicals can quickly lose ground when sentiment fades or earnings disappoint."

Viktoras Karapetjanc, expert at Traders Union, sees upside in Zscaler's outlook after the Investor Day. He views the reaffirmed revenue and EPS forecasts, along with new strategic partnerships, as supporting continued investor confidence. Karapetjanc believes that the bullish structure remains intact across all major technical levels. He expects the market to favor Zscaler given its growth narrative and strong guidance. "Further growth is likely, and I expect new highs if resistance at $215.53 is cleared."

Sholanke Dele, market strategist, remains skeptical about the sustainability of Zscaler’s recent move. He questions whether ongoing investments can support profit targets in a changing macro environment. Dele is unconvinced by short-term optimism, spotlighting the dependence on strong guidance for sentiment. "Without fresh catalysts, I see upside limited and would not rule out a fast pullback if the market mood shifts."

Bullish momentum confirmed as support levels anchor uptrend

ZS is trading above its 20-day ($193.16), 50-day ($180.29), and 200-day ($166.27) moving averages, confirming a strong bullish structure in the short, medium, and long term. The Ichimoku Kijun ($188.02) provides additional technical support, and the bullish alignment between the MA-50 and MA-200 moving averages further reinforces the uptrend. Key technical levels are marked by support at $205.69 and resistance at $215.53. Momentum is strong, with the MACD signaling a 'Strong Buy' and the RSI at 57.82, indicating ongoing buying interest. The ADX and Awesome Oscillator are neutral, while the Stochastic RSI points to further upside potential. Bull/Bear Power highlights dominant intraday buying and signals an overbought condition, with the session characterized by consolidation above support and a sustained positive trend.

Earlier, analysts noted that secular growth drivers and resilient business models in cloud and cybersecurity supported the bullish outlook for sector leaders despite broader market volatility. The reaffirmation of Zscaler's multiyear guidance, coupled with ongoing technical strength and a clear volatility band, suggests traders should closely monitor the $215.53 resistance for signs of a breakout or a potential upside extension.

Source of Data: ZS Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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