Zscaler: Billings Jump Helps To Justify Big Rally

Zscaler's sales momentum and billings acceleration set it apart in a challenging software market, justifying my reiterated 'Buy' rating despite valuation concerns. AI-driven demand and a large, underpenetrated TAM support ZS's premium valuation and continued growth, with new products and pricing models fueling adoption. Q3 results showed 23% revenue growth, strong billings acceleration, and robust large-customer expansion, highlighting the company's execution and resilience amid macro uncertainty.