Zscaler's (ZS) fiscal 2027 outlook topped its preliminary range, yet still carried a cautious tone amid a sales-leadership transition and slower-than-expected uptake of a new security product, even as AI momentum builds across its platform, RBC Capital Markets said Thursday in a report.

The company expects fiscal 2027 annual recurring revenue of $4.40 billion to $4.43 billion, revenue of $3.91 billion to $3.94 billion, and adjusted EPS of $4.86 to $4.90, the report said.

Zscaler's growing use of AI and the rollout of its new Agentic SecOps tools, designed to automate parts of security operations, may help results H2 2027, RBC said. Additional hiring, stronger partner activity and continued traction in its Z-Flex and data-security offerings might also support upside to estimates, the report said.

RBC raised its price target on Zscaler stock to $210 from $200 and maintained its outperform rating.

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