Piper Jaffray analyst Andrew Nowinski raised his price target for Zscaler to $82 from $65 saying the company reported "solid" fiscal Q3 results, with revenue exceeding the high-end of guidance by 5.5%. Billings exceeded consensus by 17%, though the stock was trading down in after-hours, likely on concerns around the Q4 guidance, Nowinski tells investors in a research note. The analyst believes Zscaler's momentum is growing and he reiterates an Overweight rating on the shares. He notes that the company had a $16.5M deal in the prior year period and after excluding this large deal, billing guidance for Q4 equates to 46.8% year-over-year growth.

Zscaler announced innovations - ZDX Copilot, Hosted Monitoring, and Data Explorer - to its Zscaler Digital Experience service. The new ZDX Copilot, an AI assistant, instantly analyzes and harnesses knowledge from over 500 trillion data points daily across users, devices, networks, and applications, to provide IT operations, service desk, and security teams insights they need related to digital experience and performance. Teams can ask sequences of questions to effectively converse with Copilot, which uses Generative AI, to review high-level trends and progressively narrow results down to specific actionable insights.