Zscaler (ZS) is expected to deliver a slight upside to fiscal Q4 results while the setup for fiscal 2027 is favorable, Oppenheimer said in a Wednesday note. The Q4 results are due Sept. 3.

The report said checks showed mixed results for the July-quarter but broadly tracking in line/better versus partner plans.

Initial fiscal 2027 guidance is also expected to be consistent with the company's early outlook for 16% to 17% annual recurring revenue and revenue growth, the note said.

The outlook would imply 2.3% organic revenue growth deceleration and just 4% net new annual recurring revenue from a year ago, it added.

While a staggered AI rollout, sales leadership departures, and potential Red Canary churn warrant caution, estimates appear de-risked, the report said.

"Investor sentiment remains negative, with competitor rhetoric and sales turnover weighing on the narrative, but low expectations create favorable risk/reward," the note said.

Oppenheimer kept its outperform rating and a $250 price target.

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