Zscaler's ARR Growth on Focus at Upcoming Investor Day, Wedbush Says

12:12 PM EDT, 09/28/2026 (MT Newswires) -- Zscaler (ZS) is expected to provide clear view around its multi-year framework built on mid-to-high-teens annual recurring revenue growth and long-term margin forecast, Wedbush said in a note Monday. The company could set cautious growth targets at its Oct. 6 investor day, similar to its 2021 investor day, while keeping margin goals conservative as it invests more in its AI security products, Wedbush said. The investment firm expects fiscal 2027 ARR to rise about 17% to $4.41 billion, with a non-GAAP operating margin of 23.6%, followed by about 100 basis points of annual margin growth through fiscal 2029. The firm said it believes the company's long-term framework as the key catalyst for the stock, as its estimates are already at the guidance midpoint. Growth in non-seat-based contracts will also be important because faster adoption would show that Zscaler is expanding beyond user-based products into branches, workloads, AI applications and AI agents, according to the note. Wedbush maintained its outperform rating and $215 price target for Zscaler, saying it expects investors to focus on growth in Security for AI, Data Security and Zero Trust Everywhere, as companies and government agencies spend more on protecting AI systems. Price: 201.86, Change: +8.80, Percent Change: +4.56