Zscaler Strengthens Market Position Through Strategic AI Security Acquisition

Cybersecurity leader Zscaler is reinforcing its standing in the rapidly expanding artificial intelligence security sector following its recent purchase of SPLX. This strategic move aims to enhance the company's Zero-Trust platform capabilities and strengthen protection for corporate AI assets—a development that has garnered positive reactions from financial analysts.

Market experts at Barclays have increased their price target for Zscaler from $320 to $350 while maintaining their "Overweight" recommendation. This vote of confidence comes as the company's shares demonstrated stability, closing at $331.51 with a 0.68 percent daily gain.

The acquisition of SPLX, recognized as an innovative pioneer in AI security, represents a significant advancement in securing the complete AI lifecycle. By integrating SPLX's technology, Zscaler expects to deliver enhanced capabilities in AI asset detection, automated red teaming, and comprehensive governance frameworks.

This purchase continues Zscaler's strategic expansion following its August 2025 acquisition of Red Canary, an AI-powered threat management firm. The timing appears well-calculated, with the agentic AI market projected to experience substantial growth—escalating from $13.81 billion in 2025 to an estimated $140.80 billion by 2032.

Wedbush Securities has similarly demonstrated confidence in Zscaler's direction, raising its price objective from $330 to $350 and issuing an "Outperform" rating. This collective analyst optimism signals strong market belief in Zscaler's strategic initiatives and execution capabilities.

Should investors sell immediately? Or is it worth buying Zscaler?

Solid Financial Performance Amid Market Volatility

Zscaler has consistently delivered robust financial results, outperforming the S&P 500 with impressive year-to-date returns of 76.22 percent through 2025. The company's fourth quarter 2025 financial report highlighted several key achievements:

• Annual recurring revenue exceeding $3 billion
• ARR growth of 22 percent year-over-year
• Calculated billings expanding 32 percent to reach $1.2 billion

The company's security platform currently protects approximately 40 percent of Global 2000 enterprises, underscoring its extensive penetration within large-scale corporate security operations.

Future Outlook and Market Expectations

Market participants are anticipating Zscaler's first quarter 2026 earnings release, scheduled for announcement after market close on November 25. Financial experts project earnings per share of $0.85 and revenue of $773.35 million for the quarter ending in October.

Zscaler's stock is trading near its 52-week peak of $336.99, achieved on November 3. This technical strength, combined with strategic acquisitions and favorable analyst sentiment, positions the company for continued market attention in the coming quarters.