Zscaler Beats EPS Estimates, Up 23.8%

Core Insights - Zscaler reported strong financial performance in Q2 2025, with revenue of $647.9 million and non-GAAP EPS of$0.78, both exceeding market expectations [2][3] - The company's growth is attributed to its Zero Trust and AI strategies, which are enhancing its cloud-native security solutions [1][5] Financial Performance - Revenue increased by 23.4% year-over-year from $525 million in Q2 2024 to$647.9 million in Q2 2025 [3][6] - Non-GAAP EPS rose by 23.8% from $0.63 in Q2 2024 to$0.78 in Q2 2025 [3][6] - Calculated billings reached $742.7 million, reflecting an 18.3$100.8 million to $143.4 million [3][7] - Deferred revenue increased by 25$1,878.5 million, indicating strong subscription interest [7] Business Strategy - Zscaler focuses on its Zero Trust Exchange platform, which enhances security by allowing users access only to necessary resources [4] - The company is integrating AI into its platform to improve security outcomes and expand its market presence, particularly in federal agencies and international markets [5] Operational Highlights - The company upgraded its Zero Trust Network Access and integrated with RISE with SAP solutions to enhance data protection for remote users [8] - Phil Tee was appointed as EVP of AI Innovations to drive AI-driven security enhancements [8] Future Projections - For Q3 2025, Zscaler projects revenue between $665 million and$667 million, with non-GAAP EPS expected to be between $0.75 and$0.76 [10] - Annual revenue projections are between $2.640 billion and$2.654 billion, reflecting confidence in the demand for Zero Trust capabilities [10]