10:53 AM EDT, 06/10/2026 (MT Newswires) -- Zscaler ( ZS ) is still seeing strong demand for its cloud and AI products even as investor sentiment around the company has turned negative following its recent earnings report, Wedbush said in a note Wednesday.

The analysts said they recently attended Zscaler's ( ZS ) annual user conference in Las Vegas, where product managers, clients, and channel partners provided "strong feedback" around the company's new AI security products.

Zscaler ( ZS ) launched a "strong portfolio" of AI-backed cybersecurity tools during the event designed to provide guardrails for AI agentic deployments, Wedbush said.

Zscaler ( ZS ) is "still in the early stages of capitalizing on the $120 billion serviceable addressable market opportunity," the note said, adding that figure includes over $16 billion in AI security, $20 billion for data security everywhere, and $19 billion for AI agentic operations.

The investment firm said it has a "bullish stance" on Zscaler ( ZS ) as the company is "taking a methodical approach to deploying advanced AI cyber tools that directly address customers' key concerns around agentic deployments that have held them back."

Wedbush maintained Zscaler's ( ZS ) outperform rating and the company's $220 price target.

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