Zscaler shares gain more than 3% after unveiling new AI security offerings and strong enterprise momentum

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Zscaler rises 3.15% today to $232.89

Highlights

Zscaler stock is supported by a 25% increase in fiscal 2026 revenue to $3.35 billion and $3.77 billion in annual recurring revenue.
The company expanded AI-driven security offerings with Zero Trust Exchange and the Agentic SOC initiative, and remained active with share repurchases among Fortune 500 clients.
Shares of Zscaler trade in a bullish structure above key moving averages, with a projected range of $219.22 to $246.55, and most momentum indicators support further gains.

Enterprise adoption expands amid new AI security product rollout

Zscaler Inc reported a 25% rise in revenue for fiscal 2026, reaching $3.35 billion along with $3.77 billion in annual recurring revenue. The company introduced new AI security offerings, such as the Zero Trust Exchange and Agentic SOC initiative, to capture enterprise business and address advanced threats. Zscaler continued share repurchases and maintained a significant presence among large enterprise customers, including over half of the Fortune 500.

Anton Kharitonov, expert at Traders Union, highlights the overbought signals despite Zscaler's strong price action. He observes that rapid revenue growth and AI-driven initiatives attract investor interest, yet cautions that stretched momentum indicators and volatility raise the risk of sharp reversals. Kharitonov stresses that share repurchases and expanding enterprise exposure do not eliminate downside if sentiment shifts. He notes persistent overbought technical readings as a warning sign. "While bulls remain in control now, I see a high probability of mean reversion if Zscaler fails to break through immediate resistance."

Viktoras Karapetjanc, expert at Traders Union, views Zscaler's results as a clear signal of sustained demand in enterprise cybersecurity. He sees robust revenue increases, growing Fortune 500 penetration, and AI-powered offerings as catalysts for further gains. Karapetjanc believes the bullish structure remains intact, reinforced by confident institutional flows and buy signals from key momentum indicators. "Given the upward momentum and innovation pipeline, I expect further growth as the market offers multiple setups for Zscaler bulls."

Jainam Mehta, market strategist, notes that technical momentum favors Zscaler but points to elevated volatility and mixed oscillator readings. He observes that the upside scenario is supported as long as the price stays above $223.75, while a move below could quickly open the lower end of the range. Mehta suggests traders watch for a potential breakout above $235.2 or prepare for tactical entries if the stock pulls back within the projected band. "With sentiment stretched, I'd look for short-term overextension to fade or a clean breakout to confirm bullish continuation."

Sustained uptrend as momentum indicators diverge near resistance

ZS is trading above its 20-day, 50-day, and 200-day moving averages ($205.88, $187.3, $166.03), which reinforces bullish momentum in short, medium, and long-term timeframes. Immediate resistance is seen at $235.2, with support at $223.75, and the alignment of the 50-day above the 200-day moving average confirms a sustained bullish structure. Most momentum indicators are supportive: the MACD, ADX, and RSI (66.08) all indicate a buy, but CCI (173.87) and BBP (26.33) warn of overbought conditions, while the Stochastic RSI points to a strong sell. The Awesome Oscillator aligns with the ongoing uptrend. Intraday volatility registered at 5.12%, with the price holding near session highs and buyers dominating short-term action.

Previously it was reported that Zscaler maintained a strong bullish technical setup supported by reaffirmed long-term guidance and sector resilience. The latest results and persistent momentum reinforce this positive scenario, with traders advised to monitor potential breakouts above $235.2 for signs of further upside.

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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