Cowen analyst Nick Yako said the weakness in Zscaler following strong Q2 results would be a buying opportunity. The analyst noted management raised guidance and he expects the significant increase in sales capacity combined with new products in Q4 to drive upside further. Yako reiterated his Outperform rating and $70 price target on Zscaler shares.

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.