Zscaler (ZS) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates

Core Insights - Zscaler reported revenue of $788.11 million for the quarter ended October 2025, marking a year-over-year increase of 25.5% and exceeding the Zacks Consensus Estimate by 1.91% [1] - The company's EPS for the same period was $0.96, up from $0.77 a year ago, representing a surprise of 12.94% over the consensus estimate of $0.85 [1] Financial Performance Metrics - Remaining Performance Obligations stood at $5.93 billion, surpassing the average estimate of $5.65 billion from three analysts [4] - The Dollar-Based Net Retention Rate was reported at 115%, slightly above the average estimate of 114.1% from three analysts [4] - Revenue from Direct Customers reached $122.1 million, significantly exceeding the average estimate of $92.97 million from two analysts, reflecting a year-over-year increase of 75.5% [4] - Revenue from Channel Partners was $666.01 million, which fell short of the average estimate of $680.24 million from two analysts, but still represented a year-over-year growth of 19.3% [4] Stock Performance - Zscaler's shares have declined by 14.1% over the past month, compared to a decrease of 1.2% in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]