Zscaler Stock Up Nearly 7% Following Positive Earnings from Atlassian, Twilio

TLDR

• Zscaler (ZS) increased by up to 6.99% on May 1, buoyed by robust earnings and upgraded projections from SaaS counterparts like Atlassian and Twilio.
• Citizens reduced its price target for ZS from $290 to $210 yet maintained an Outperform rating.
• ZS is currently trading at $139.58, marking a 36.7% decline year-to-date and sitting 58.5% below its 52-week peak of $336.27.
• A KeyBanc survey of CIOs identified growing cybersecurity budgets linked to AI implementation as a favorable driver for cybersecurity platforms.
• Over the past year, the stock has experienced 18 fluctuations of more than 5%, indicating persistent volatility.

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(SeaPRwire) –   Zscaler (ZS) rose by up to 6.99% on May 1, capitalizing on a surge of positive sentiment that swept the software industry following strong performance reports from several major peers.

Zscaler, Inc. (ZS)

Heading into the trading session, the stock was priced at $139.58 — a figure that’s 58.5% lower than its 52-week high of $336.27, which was reached in November 2025.

The direct trigger wasn’t specific to Zscaler. Atlassian raised its annual outlook, pushing its own stock up and dragging other companies like Salesforce and ServiceNow along with it.

Twilio further boosted the positive atmosphere by reporting first-quarter revenue that exceeded expectations and updating its own forecast, with its CEO citing AI as a critical factor.

This type of momentum from peers often lifts the entire sector, and ZS was not left out.

Citizens Cuts Target But Stays Bullish

May 1 wasn’t all good news for Zscaler. Citizens cut its price target for the stock from $290 to $210.

The reduction stemmed from worries that cutting-edge AI might escalate cyber risks and necessitate a reevaluation of cybersecurity valuations across the industry.

Nevertheless, Citizens retained its Outperform rating — an indication that the firm still anticipates growth from current prices, even as the valuation landscape becomes more complex.

According to Citizens, demand for zero-trust and SASE solutions — which are central to Zscaler’s operations — remains strong.

AI and Cyber Budgets in Focus

Approximately ten days prior to the May 1 increase, ZS rose by 4.1% following a KeyBanc survey of CIOs that highlighted expanding cybersecurity budgets tied to AI adoption.

The survey identified Anthropic’s Mythos AI model as a factor expected to boost enterprise security spending over the coming year.

The logic is simple: increased AI usage expands the attack surface, so companies are projected to invest more in protection.

This favorable trend has helped mitigate some of the challenges Zscaler has encountered in 2026.

ZS has been among the most affected stocks in the cybersecurity sector this year, with a 36.7% drop since January 1.

Over the past year, the stock has seen 18 changes of more than 5%, underscoring its reactivity to both industry news and wider market fluctuations.

An investor who invested $1,000 in Zscaler five years ago would now have approximately $772.93.

The stock’s average daily trading volume is just over 3 million shares, and its current market capitalization is $21.01 billion.

Citizens’ updated price target of $210 still suggests significant potential growth from the $139.58 price at which ZS was trading on May 1.