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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.

While we acknowledge the potential of ZS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ZS and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

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In fact, Verge argues this company’s supercheap AI technology should concern rivals.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

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