Zscaler stock advanced Tuesday after the cybersecurity company reaffirmed its outlook for the fiscal first quarter and fiscal 2027, citing growing demand for its Zero Trust platform.

Zero Trust is Zscaler's signature cloud-based security platform, which protects systems from hackers and stops malware from spreading. Companies have been increasingly seeking such protections as artificial-intelligence develops and spreads.

The platform has brought a substantial amount of growth to Zscaler's earnings. In the company's fiscal fourth-quarter report, released Sept. 3, Zscaler's annual recurring revenue grew 25% to $3.77 billion from a year before.

For the fiscal first quarter ending Oct. 31, the company continues to expect revenue to range from $935 million to $939 million, up 19% from the year before. Zscaler also projects adjusted earnings to range from $1.15 to $1.16 a share during that period, management said at its investor day Tuesday.

Zscaler anticipates adjusted earnings to range from $4.86 and $4.90 a share and projects revenue to land between $3.91 billion and $3.94 billion for its fiscal year ending July 31, 2027.

Zscaler previously outlined this guidance when it released its earnings for the fiscal fourth quarter and fiscal 2026, which topped Wall Street's estimates for both revenue and earnings. Investors were pleased with the earnings, sending shares up 19% since that date.

Zscaler stock rose 2.9% to $207.79 Tuesday. The boost comes as shares have declined 5.8% this year, with the stock heading for its worst year since 2024, according to Dow Jones Market Data.

Nearly two weeks ago, Zscaler said Ross Tackett would take over as chief revenue officer, replacing Mike Rich, who left for "personal reasons." The executive shake-up triggered a 10% drop in shares, its worst single-day drop since May 27 at the time, according to Dow Jones Market Data. Tackett officially assumed the role on Oct. 1.

Wall Street analysts, however, considered the transition as a positive shift for the company. Mizuho analyst Gregg Moskowitz previously raised his Zscaler price target to $220 from $210, calling the executive management shift "continuity" instead of a "disruption." Since the announcement, shares have risen 9.5%.