09:19 AM EDT, 05/30/2025 (MT Newswires) -- Zscaler's ( ZS ) fiscal third-quarter results marked another "breakout" moment for the company as it continues to see strong demand for its artificial intelligence security offerings and zero trust platform, Wedbush Securities said in a Friday note.

The cloud security company said late Thursday that it now expects calculated billings to be in a range of $3.18 billion to $3.19 billion for fiscal 2025, up from its previous projections of $3.15 billion to $3.17 billion. The current consensus on FactSet is for $3.18 billion.

Increased sales productivity through the firm's new account-centric sales go-to-market team is attracting large enterprise customers, with AI providing demand and new product tailwinds, Wedbush said. The brokerage maintained its outperform rating on Zscaler's ( ZS ) stock and lifted the price target to $300 from $240.

Zscaler ( ZS ) shares were up 4.9% in Friday's premarket activity.

"Overall, we continue to believe that (Zscaler ( ZS )) is a top name in this space to own as this cloud cyber security shift further accelerates," Wedbush analysts led by Daniel Ives wrote in the note.

For its fiscal third quarter ended April, the company reported adjusted earnings of $0.84 a share versus $0.71 the year before, ahead of the Street's view of $0.76. Revenue advanced 23% to $678 million, beating the market's view of $666.5 million. Calculated billings grew 25% to $784.5 million.

Unscheduled billings increased in the high-20% range on an annual basis, as new products continued to see substantial growth and made up a larger portion of billings, Wedbush said.

Zscaler ( ZS ) also announced Thursday that it appointed Kevin Rubin as chief financial officer. Rubin will succeed Remo Canessa, who announced his intention to retire last year.