While the market showed strong momentum through much of 2024, Zscaler (ZS -0.36%) hasn't followed suit and struggled to gain traction in 2024. The latest evidence of this came as share prices fell after the cybersecurity company released its fiscal 2025 first-quarter results.
Zscaler NASDAQ: ZS shares tanked more than 7% in premarket trading following its FQ1/CQ3 earnings report, opening a textbook buy-the-dip opportunity. The results failed to impress the analysts, but that is the only thing wrong with the report.
Cloud cybersecurity developer Zscaler (ZS) outdid estimates for its fiscal first quarter, posting revenue of $627.96 million and adjusted earnings per share (EPS) of $0.77, while underwhelming on its second quarter guidance. Zscaler also announced the retirement of its CFO Remo Canessa.
Zscaler Inc ZS shares tanked in early trading on Tuesday, even after the company reported upbeat fiscal first-quarter results.
Zscaler, a leader in zero-trust security, reported better-than-expected earnings and raised its FY 2025 guidance, yet its stock dropped 8% pre-market. Despite the selloff, Zscaler appears undervalued at $190, with strong sales and profitability growth prospects, making it a compelling buy. Zscaler has consistently beaten consensus estimates, suggesting continued outperformance; potential EPS for 2026 could imply a forward P/E of 45.
In this video, I will cover Zscaler's (ZS -4.77%) recent earnings report and explain why the dip is worth buying. Watch the short video to learn more, consider subscribing, and click the special offer link below.
Zscaler (ZS) shares fell 5% Tuesday, a day after the cloud-based cybersecurity platform reported a slowdown in billings and issued underwhelming guidance. In addition, it announced the company's finance chief would be stepping down.
Zscaler's Q1 performance benefits from increasing customer interactions and effective sales execution supported by a robust AI portfolio.
Zscaler Inc (NASDAQ:ZS) stock is 4.8% lower to trade at $198.53 at last check, after the cloud company's dismal forecast for the fiscal second quarter overshadowed a fiscal first-quarter earnings and revenue beat.
Zscaler Inc ZS reported better-than-expected fiscal first-quarter financial results after the market close on Monday.
U.S. stock futures were mixed this morning, with the Dow futures falling around 0.1% on Monday.
Zscaler's fiscal 2025 guidance is marginally raised, leading to concerns given its high valuation of 36x forward free cash flow. Despite strong fundamentals and a solid balance sheet, ZS's 13% y/y billings growth is underwhelming for investors expecting consistent upgrades. The cybersecurity firm faces stiff competition and must prove its ability to reaccelerate growth to justify its premium valuation.