Zscaler (ZS) Beats Q2 Earnings and Revenue Estimates

Group 1: Earnings Performance - Zscaler reported quarterly earnings of $0.78 per share, exceeding the Zacks Consensus Estimate of$ 0.69 per share, and showing an increase from $0.76 per share a year ago, representing an earnings surprise of 13.04% [1] - The company posted revenues of$ 647.9 million for the quarter ended January 2025, surpassing the Zacks Consensus Estimate by 2.18%, and up from $525 million in the previous year [2] - Over the last four quarters, Zscaler has consistently surpassed consensus EPS estimates and revenue estimates [2] Group 2: Stock Performance and Outlook - Zscaler shares have increased approximately 7.4% since the beginning of the year, contrasting with the S&P 500's decline of -1.8% [3] - The future performance of Zscaler's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is$ 0.73 on revenues of $664.5 million, and for the current fiscal year, it is$ 2.99 on revenues of $2.64 billion [7] Group 3: Industry Context - The Zacks Security industry, to which Zscaler belongs, is currently ranked in the top 18% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - The performance of Zscaler's stock may also be influenced by the overall industry outlook and trends in earnings estimate revisions [5][8]