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Why Zscaler Stock Is Surging Today
ZSZscaler(ZS) The Motley Fool·2025-03-06 18:16

Core Insights - Zscaler's stock experienced a 7% increase following the release of its Q2 fiscal 2025 earnings report, which exceeded market expectations [1] Financial Performance - Zscaler reported adjusted earnings per share (EPS) of 0.78onsalesof0.78 on sales of 647.9 million for the quarter, surpassing analyst estimates of 0.69EPSand0.69 EPS and 635.45 million in sales [2] - Year-over-year sales growth was 23.4%, with deferred revenue reaching approximately 1.88billion,a251.88 billion, a 25% increase compared to the same quarter last year [2] - Adjusted EPS increased by 23.8% year over year [2] Future Guidance - For the fiscal third quarter, Zscaler anticipates sales between 665 million and 667million,slightlybelowtheaverageanalystestimateof667 million, slightly below the average analyst estimate of 667.25 million, but adjusted EPS guidance of 0.75to0.75 to 0.76 exceeds the forecast of 0.74[3]Thecompanysfullyearsalesguidanceisbetween0.74 [3] - The company's full-year sales guidance is between 2.64 billion and 2.654billion,whichisbetterthantheconsensusforecastof2.654 billion, which is better than the consensus forecast of 2.64 billion [4] - Zscaler's earnings outlook for the full year is between 3.04and3.04 and 3.09 EPS, surpassing Wall Street's expectation of $2.99 [4]