02:33 PM EST, 02/27/2026 (MT Newswires) -- Zscaler ( ZS ) reported a "solid" quarter, with the company's revenue and annual recurring revenue beating consensus by 2.2% and 0.4%, respectively, as demand was broad-based across its portfolio, RBC said in a Friday note.

While the company's organic growth remains an investor question, RBC said that Secure Access Service Edge, or SASE, and Zero Trust are large and growing markets and despite higher competition, Zscaler ( ZS ) can grow its portfolio with artificial intelligence as a tailwind to the business.

Noting the company's quarterly results, RBC said that Zscaler ( ZS ) saw record pipeline conversion for a Q2 and that Z-Flex continues to track well with $290 million total contract value in Q2, among others.

RBC adjusted its price target on Zscaler ( ZS ) to $205 from $250 and maintained its outperform rating.

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