Zscaler’s (ZS) Growth Momentum Intact, Says Robert Baird

On June 2, Shrenik Kothari of Robert W. Baird reiterated his Buy rating on Zscaler Inc. (NASDAQ:ZS) with an unchanged price target of $315. Kothari’s view is underpinned by strong performance, as indicated by key revenue metrics and ongoing customer expansion.

The analyst points to the more than 30% year-over-year growth in remaining performance obligations (RPO) in Q3 2025 as supportive to long-term revenue visibility. He notes that a substantial share of these obligations is expected to convert into revenue over the next 12 months, signaling healthy near-term demand.

A computer engineer analyzing a server network for cyber security threats.

Zscaler has also continued to grow its top line at a strong pace, supported by both new customer additions and increased spend from existing clients. According to Kothari, the company’s customer count expanded by 10% year-over-year, while direct customer revenue jumped nearly 58%, highlighting strong product adoption and upsell activity.

The analyst also highlights the company’s recent partnerships and foreign exchange gains as additional tailwinds, further reinforcing the company’s near-term financial position. Together, these elements support the analyst’s constructive stance on the stock.

Zscaler is a U.S.-based cloud security company that offers cloud-based services to protect enterprise networks and data.

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Disclosure: None.