Zscaler, Inc. (NASDAQ: ZS) is a prominent player in the cloud security industry, providing solutions that help businesses secure their digital environments. The company is known for its Zero Trust and AI security solutions, which are increasingly important in today's digital landscape. Zscaler competes with other cybersecurity firms like Palo Alto Networks and Fortinet.
On September 2, 2025, Zscaler reported earnings per share (EPS) of $0.89, surpassing the estimated $0.80. This represents an earnings surprise of +11.25%, as highlighted by Zacks. The company has consistently outperformed consensus EPS estimates over the past four quarters, demonstrating its strong financial performance.
Zscaler's revenue for the quarter ending in July 2025 was approximately $719.2 million, exceeding the estimated $706.9 million. This marks a significant 21% increase from the $592.87 million reported in the same period last year. The company has consistently surpassed consensus revenue estimates in the last four quarters, showcasing its robust growth in the cloud-based information security sector.
Despite a GAAP net loss of $17.6 million, Zscaler reported a non-GAAP net income of $146.7 million, up from $115.8 million the previous year. The company's Annual Recurring Revenue (ARR) rose by 22% to over $3 billion, and calculated billings grew by 32% to $1.2 billion. These figures highlight Zscaler's strong financial health and growth potential.
Zscaler's stock experienced an increase following the announcement of its fiscal Q4 earnings, which surpassed expectations. The company's revenue and billings exceeded estimates, contributing to the positive market response. Additionally, Zscaler provided a sales guidance for fiscal 2026 that was above analysts' projections, further boosting investor confidence.
