Zscaler (ZS) traded higher after Evercore ISI raised its price target to $290 from $245 and reiterated an Outperform rating, giving investors a fresh catalyst following recent volatility across high-multiple software names. The target hike added to a growing narrative that the selloff earlier this month may have overshot fundamentals, pulling in dip buyers and short covering.

The analyst optimism plugs into momentum from Zscaler’s fiscal second-quarter 2026 update released February 26, 2026, when the company posted 26% revenue growth to $815.8 million and said ARR rose 25% year over year to $3.359 billion. Management also raised full-year fiscal 2026 ARR guidance to $3.730–$3.745 billion, implying 24% growth, and lifted full-year revenue guidance to about $3.309–$3.322 billion.

The next major near-term catalyst is the fiscal Q3 earnings report, scheduled for May 28, 2026 (after the close), which could confirm whether the raised ARR trajectory is holding and whether profitability remains resilient. Investors will also track competitive dynamics in secure access and zero-trust networking, especially after the April 9, 2026 downgrade-driven drawdown that pressured the group earlier this month.