Zscaler Stock: Zscaler Earnings, Top Revenue Estimates. Guidelines meet views.

Zscaler (ZS) said fiscal third-quarter earnings, revenue and billings beat Wall Street targets amid lowered expectations. The cybersecurity company’s earnings outlook for Zscaler stock met expectations.

Reported after the market closed on Thursday, Zscaler’s earnings rose 83% to 88 cents a share from a year earlier on an adjusted basis. Revenue rose 32% to $553.2 million, the San Jose, California-based company said.

Zscaler stock analysts expected earnings of 66 cents per share on sales of $536 million.

Additionally, billings increased 30% to $628 million compared to estimates of $583.7 million.

“While sales momentum was particularly driven by continued demand for the Zero Trust Exchange platform, we expect demand to remain strong over the coming months. “Zscaler is seeing growing customer interest in its new products and continued interest from the federal government,” TD Cowen analyst Shaul Eyal said in the report.

Zscaler Stocks: Selling Tips Meet Opinions

Zscaler said it expects revenue of $566 million in the current quarter ending in July, at the midpoint of guidance, in line with estimates.

“We are encouraged by increasing revenue diversification, which we believe will help drive sustained growth through upsells, cross-sells and larger land (deals),” BMO Capital Markets analyst Keith Bachman said in the report.

On the stock exchange today, Zscaler shares rose 11.9% to 175.31 in the morning.

Before Zscaler’s earnings release, the cybersecurity company’s stock was down 27% in 2024. Additionally, ZS stock had a relative strength rating of just 22 out of a best-possible 99, according to IBD Stock Checkup.

Zscaler provides cloud-based cybersecurity services through 150 data centers around the world. Zscaler network security gateways check customer data traffic for malware.

Moreover, the Zscaler Private Access cloud service replaces virtual private networks and supports remote work.

Zscaler competes with Palo Alto Networks (PANW) i Microsoft (MSFT), as well as the well-funded startup Wiz. In February, Zscaler COO Dali Rajic left to join Wiz in the same position.

Zscaler stock is included in the IBD Computer-Software Security group, which ranks 87th out of 197 groups monitored.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.

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