Core Viewpoint - Zscaler's share price is projected to reach $360 due to positive technical price action, favorable analyst sentiment, and strong business fundamentals, indicating a breakout from a long-term trading range [1][2][5]. Group 1: Business Fundamentals - The recent breakout in Zscaler's stock price is attributed to business fundamentals catching up to valuation concerns, leading to an improved outlook for sustainable 20% growth and increasing shareholder value [2][10]. - Zscaler reported a solid fiscal Q3 2025, with revenue exceeding analyst forecasts and growth remaining above 20%, supported by accelerated gains in billings and deferred revenue [10][11]. - The company has a robust balance sheet with over $3 billion in cash and equivalents, a 21% increase in net income, and an 18% free cash flow margin [11]. Group 2: Analyst Sentiment - Analyst activity shifted positively following Zscaler's fiscal Q3 results, with a 17% increase in the consensus price target and no decreases tracked among 36 analysts [5][6]. - The consensus price target reflects a 25% increase compared to the previous year, indicating strong analyst confidence in the company's performance [6][11]. - The stock currently has a Moderate Buy rating, with a high forecast of $320 and an average forecast of $277.32 [11][15]. Group 3: Market Dynamics - The market is experiencing a recovery rally, with projections suggesting potential new all-time highs in the range of $375 to $403 [4]. - Institutional investors own 41% of Zscaler's stock and have been buying on balance throughout the year, providing a solid support base for price action [13]. - Short interest was at 9% ahead of the release, setting the stage for a potential short-covering rally [14]. Group 4: Product Development - Zscaler's new product, Z-Flex, is designed to streamline security stack adjustments for businesses, enhancing flexibility and scalability while reducing costs [9][8].

Key Takeaways ZS stock jumped 46.1% in 3 months, outpacing peers like PANW, CRWD, and CYBR. Zscaler expanded through new AI tools, key acquisitions, and deeper federal government integration.Zscaler, Inc. (ZS) shares have climbed 46% in the past three months, outperforming the Zacks Security industry’s return of 10.7%. ZS stock has also outperformed its industry peers, including CyberArk Software (CYBR) , Palo Alto Networks (PANW) and CrowdStrike (CRWD) . Shares of CyberArk, Palo Alto Networks and CrowdStr ...

Have you evaluated the performance of Zscaler's (ZS) international operations during the quarter that concluded in April 2025? Considering the extensive worldwide presence of this cloud-based information security provider, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its finan ...

Cloud stock Zscaler Inc (NASDAQ:ZS) was last seen up 7.6% at $270.32, after the company posted strong fiscal third-quarter results and raised its full-year forecast once again. Separately, the firm also announced the appointment of Kevin Rubin as the new Chief Financial Officer. The positive momentum has ZS brushing off a downgrade from Piper Sandler to "neutral" from "overweight," though no fewer than 18 analysts also lifted their price targets on the stock. Today's pop has ZS trading at three-year highs a ...

Zscaler (ZS) reported third-quarter fiscal 2025 non-GAAP earnings of 84 cents per share, which beat the Zacks Consensus Estimate by 12%. Moreover, the bottom line increased 18.3% year over year, driven by higher revenues and efficient cost management.ZS’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 18.7%.Zscaler’s third-quarter fiscal 2025 revenues of $678 million beat the Zacks Consensus Estimate by 1.8% and exceeded management’s guidance of $ ...

Zscaler Inc ZS reported better-than-expected third-quarter financial results after the market close on Thursday.Zscaler reported third-quarter revenue of $678.03 million, beating the consensus estimate of $666.86 million. The cybersecurity company reported adjusted earnings of 84 cents per share, beating analyst estimates of 75 cents per share, according to Benzinga Pro."We delivered outstanding third quarter results as an increasing number of customers adopt our expanding Zero Trust Exchange platform. We e ...

Zscaler (ZS) reported $678.03 million in revenue for the quarter ended April 2025, representing a year-over-year increase of 22.6%. EPS of $0.84 for the same period compares to $0.88 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $666.39 million, representing a surprise of +1.75%. The company delivered an EPS surprise of +12.00%, with the consensus EPS estimate being $0.75.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Stree ...

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. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 12%. A quarter ago, it was expected that this cloud-based information security provider would post earnings of $0.69 per share when it actually produced earnings of $0.78, delivering a surprise of 13.04%.Over the last four q ...

Zscaler (ZS) Q3 2025 Earnings Call May 29, 2025 04:30 PM ET Company Participants Ashwin Kesireddy - Vice President of Investor Relations & Strategic FinanceJay Chaudhry - CEO, Chairman & FounderRemo Canessa - CFOKevin Rubin - CFOBrad Zelnick - Managing DirectorSaket Kalia - Managing DirectorRoger Boyd - Executive DirectorShaul Eyal - Managing Director - Equity ResearchMichael Richards - Equity Research Senior AssociateGray Powell - Managing Director Conference Call Participants Ittai Kidron - MD & Senior An ...

Financial Data and Key Metrics Changes - Revenue for Q3 was $678 million, representing a 23% year-over-year increase and a 5% sequential increase [29] - Annual recurring revenue (ARR) was approximately $2.9 billion, with a year-over-year growth of 23% [29] - Remaining performance obligations (RPO) grew 30% year-over-year to $4.978 billion [30] - Total calculated billings increased 25% year-over-year to $785 million [30] - Free cash flow margin was 18%, including data center CapEx at 11% of revenue [32] Business Line Data and Key Metrics Changes - New logo annual contract value (ACV) grew over 40% year-over-year [7] - Zero Trust Everywhere, Data Security Everywhere, and AgenTic Operations are significant growth drivers, with combined ARR approaching $1 billion [18] - ZDX CoPilot bookings grew over 70% year-over-year to nearly $75 million [24] - SecOps solutions saw over 120% year-over-year growth in ACV [26] Market Data and Key Metrics Changes - Americas represented 54% of revenue, EMEA was 30%, and APJ was 16% [29] - The dollar-based net retention rate was 114% [31] Company Strategy and Development Direction - The company aims to reach $5 billion or more in ARR, focusing on Zero Trust and AI security [28] - The Z Flex program allows customers to flexibly scale their adoption of the platform, contributing over $65 million in TCV bookings [16] - The acquisition of Red Canary is expected to enhance capabilities in Managed Detection and Response (MDR) and Threat Intelligence [26][66] Management's Comments on Operating Environment and Future Outlook - Customers remain cautious about IT spending due to economic uncertainty, but prioritize cyber and data protection [15] - The company is seeing strong demand for its platform despite macroeconomic challenges [50] - Management is optimistic about the growth potential in federal business, although it is not a significant revenue contributor currently [88] Other Important Information - The company appointed Kevin Rubin as the new Chief Financial Officer [36] - The acquisition of Red Canary is valued at $675 million and is expected to close in August 2025 [66] Q&A Session Summary Question: How does the company ensure customer focus amidst rapid product expansion? - The company has implemented a two-tier sales model with takeoff teams for new product areas, allowing for focused expertise [43][44] Question: What is the outlook on macro trends affecting the business? - The spending environment remains challenging, but cybersecurity projects are prioritized, especially those involving Zero Trust and AI [50][51] Question: Can you elaborate on the Z Flex program? - Z Flex provides customers with flexibility in purchasing and deploying modules without lengthy procurement cycles, starting with larger customers [46][47] Question: What are the growth drivers in the new product categories? - The company is seeing significant growth in Zero Trust Everywhere, Data Security Everywhere, and AgenTic Operations, with impressive growth rates in each category [18][94] Question: What attracted the company to acquire Red Canary? - The acquisition was driven by the need to accelerate the vision of becoming a leading player in the security market, leveraging Red Canary's technology and expertise [64][66]