Zscaler Stock Climbs on Strong Q4 Earnings and Upbeat Guidance
Cybersecurity firm beats revenue and profit estimates, forecasting significant growth for fiscal year 2026 as demand for its AI-powered security solutions grows.
Shares of Zscaler, Inc. (ZS) gained over 4% in after-hours trading after the cybersecurity company that surpassed Wall Street expectations and issued a bullish forecast for the upcoming fiscal year.
The San Jose-based firm reported non-GAAP earnings of 89 cents per share on revenue of $719.2 million for the quarter ending July 31, 2025. These figures comfortably beat analyst consensus estimates, which projected 80 cents per share on $706.9 million in revenue. The company's performance was bolstered by a 32% year-over-year increase in calculated billings, a key indicator of future revenue growth.
Zscaler provided a robust outlook, projecting first-quarter revenue between $772 million and $774 million, well ahead of the anticipated $750.5 million. For the full fiscal year 2026, the company expects revenue to be in the range of $3.27 billion to $3.28 billion, significantly higher than the current consensus estimate of $2.66 billion. suggests that corporate demand for robust cybersecurity measures remains high.
"We believe Zscaler’s Zero Trust and AI security solutions are imperative in today’s world and are driving robust demand," said Jay Chaudhry, Chairman and CEO of Zscaler. He noted the company's recent expansion of its AI security portfolio to address emerging risks from artificial intelligence models and applications.
The positive results and forward-looking statements underscore Zscaler's strong position in the cybersecurity market. The company's focus on cloud-native security architecture continues to resonate with businesses undergoing digital transformation, a trend that appears poised to fuel further growth.