11:08 AM EDT, 10/02/2025 (MT Newswires) -- Zscaler ( ZS ) could produce upside to its fiscal 2026 outlook amid demand for its cloud security platform, RBC Capital Markets said in a note Thursday.

"We believe Zscaler ( ZS ) is a unique software growth asset where AI can serve as an accelerant to growth vs. a headwind," RBC analysts said in the note.

"The company's Zero Trust Everywhere market, which could be over $100B, will continue to expand over time as we see multiple s-curve growth opportunities," they added.

The analysts said the company has set a "prudent" annual recurring revenue guidance of roughly 19% organic growth.

"We see upside to FY/26 guidance as likely," they said.

The analysts also said the market opportunity for Zscaler ( ZS ) is larger than investors anticipate, which should help the company drive durable growth and margin expansion.

RBC raised its price target on the stock to $350 from $335 while keeping its outperform rating.

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