Zscaler (ZS) Tops Q3 Earnings and Revenue Estimates

Company Performance - Zscaler reported quarterly earnings of $0.84 per share, exceeding the Zacks Consensus Estimate of $0.75 per share, although down from $0.88 per share a year ago, representing an earnings surprise of 12% [1] - The company achieved revenues of $678.03 million for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 1.75% and up from $553.2 million year-over-year [2] - Over the last four quarters, Zscaler has consistently surpassed consensus EPS and revenue estimates [2] Stock Movement and Outlook - Zscaler shares have increased approximately 40.6% since the beginning of the year, significantly outperforming the S&P 500's gain of 0.1% [3] - The future performance of Zscaler's stock will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $0.75 on revenues of $707.18 million, while for the current fiscal year, the estimate is $3.06 on revenues of $2.65 billion [7] - The estimate revisions trend for Zscaler is currently mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Security industry, to which Zscaler belongs, is currently ranked in the top 13% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Another company in the same industry, CrowdStrike Holdings, is expected to report quarterly earnings soon, with estimates indicating a year-over-year decline in earnings but an increase in revenues [9][10]