ZS Q3 EPS beats by 12% with 23% revenue growth and raises FY25 guidance as Zero Trust and AI demand fuel 39% YTD stock surge.
The cybersecurity stock rose early Friday, making it an outlier in what's been a tough earnings season for the sector.
Zscaler, Inc. (NASDAQ:ZS ) Q3 2025 Earnings Conference Call May 29, 2025 4:30 PM ET Company Participants Ashwin Kesireddy - VP, IR and Strategic Finance Jay Chaudhry - Chairman and CEO Remo Canessa - CFO Kevin Rubin - Incoming CFO Conference Call Participants Ittai Kidron - Oppenheimer & Company Mike Cikos - Needham Brad Zelnick - Deutsche Bank Saket Kalia - Barclays Shrenik Kothari - Baird Roger Boyd - UBS Tal Liani - Bank of America Andrew DeGasperi - BNP Paribas Andrew Nowinski - Wells Fargo Shaul Eyal - TD Cowen Mike Richards - RBC Capital Markets Gray Powell - BTIG Operator Thank you for standing by, and welcome to Zscaler's Third Quarter Fiscal Year 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode.
Although the revenue and EPS for Zscaler (ZS) give a sense of how its business performed in the quarter ended April 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Zscaler (ZS) came out with quarterly earnings of $0.84 per share, beating the Zacks Consensus Estimate of $0.75 per share. This compares to earnings of $0.88 per share a year ago.
Federal bookings and large enterprise deal size under the microscope. Net revenue retention and margin stability drive bullish setup.
ZS forecasts solid revenue growth in the third quarter, but profit pressures and deal delays prompt a cautious hold recommendation for ZS stock.
Evaluate the expected performance of Zscaler (ZS) for the quarter ended April 2025, looking beyond the conventional Wall Street top-and-bottom-line estimates and examining some of its key metrics for better insight.
Zscaler (ZS) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Zscaler's accelerating sales pipeline, margin expansion, and strong customer adoption now justify a BUY rating, upgrading from my previous HOLD stance. Zero Trust Everywhere and AI-powered ZDX Advance Plus drive platform differentiation, customer efficiency, and recurring revenue growth, supporting long-term upside. Financials show robust 23% YoY revenue growth, expanding operating margins, and increasing large customer deals, highlighting strong operating leverage and scalability.
In the most recent trading session, Zscaler (ZS) closed at $252.57, indicating a +0.43% shift from the previous trading day.
Recently, Zacks.com users have been paying close attention to Zscaler (ZS). This makes it worthwhile to examine what the stock has in store.