Needham analyst Alex Henderson raised his price target on Zscaler to $89 and kept his Strong Buy rating after its "exceptionally strong" Q3 results that showed revenue growth of 61 and billings growth of 55% along with "sharp" margin improvement in spite of the management's focus on growth over margins. The analyst is positive on the company's execution and technology adoption dynamics, with broader deal size and platform adoption driving its performance. Henderson adds that the company has no "meaningful competition" and offers "unique" capabilities in the market.

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.