Goldman Sachs analyst Brian Essex initiated coverage of Zscaler with a Neutral rating and $45 price target. The analyst started the Security Software sector with an attractive view, believing IT Security offers "attractive levels of exposure to growth technology," and that profitable companies with this exposure could outperform the market. He views Zscaler as a leading provider of web security technology well positioned to take advantage of a shift in security spending. However, the stock's current multiple is "elevated," contends Essex.

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.