ZS Stock: Zscaler Earnings Top Estimates, Cybersecurity Stock Falls On Guidance

Zscaler (ZS) on Thursday reported fiscal second-quarter earnings and revenue that topped Wall Street targets for ZS stock. The cybersecurity firm’s guidance edged by expectations.

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Reported after the market close, Zscaler earnings rose 105% to 76 cents a share from a year earlier on an adjusted basis. Revenue climbed 35% to $525 million, the San Jose, Calif.-based firm said.

ZS stock analysts expected earnings of 58 cents per share on sales of $507.6 million.

Also, billings rose 27% to $627.6 million, compared with estimates for $610.5 million.

ZS Stock: Fiscal Q3 Guidance

For the current quarter ending in April, Zscaler said it expects earnings per share in the range of 64 cents to 65 cents, ahead of estimates for 58 cents.

Zscaler said it expects revenue of $535 million at the midpoint of guidance. Analysts had predicted revenue of $532 million. The company forecast operating income of $99 million at the midpoint of guidance vs. consensus estimates of $85 million.

On the stock market today, ZS stock fell more than 6% to 225.30 in extended trading.

Heading into the Zscaler earnings release, the cybersecurity stock had gained 7% in 2024 and 81% over the past year. Also, ZS stock had a Relative Strength Rating of 94 out of a best-possible 99, according to IBD Stock Checkup.

Zscaler provides cloud-based cybersecurity services via 150 data centers worldwide. Zscaler’s web security gateways inspect customers’ data traffic for malware.

Further, the Zscaler Private Access (or ZPA) cloud service replaces virtual private networks to support remote work.

Zscaler competes with Palo Alto Networks (PANW) and Microsoft (MSFT).

Follow Reinhardt Krause on X, formerly called Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.

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