Zscaler Shares Gain After Q2 Results: Here's Why

Zscaler, Inc. (NASDAQ:ZS) released its second-quarter results after Wednesday's closing bell. Here's a look at the key figures from the quarter.

The Details: Zscaler reported quarterly earnings of 78 cents per share, which beat the analyst consensus estimate of 69 cents. Quarterly revenue came in at $647.9 million, which beat the analyst consensus estimate of $635.56 million and is an increase over revenue of $525 million from the same period last year.

Deferred revenue was $1.87 billion as of Jan.31, 2025, an increase of 25% year-over-year, and cash flows from operations was $179.4 million, or 27% of revenue.

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“Growing adoption of Zero Trust and AI is driving strong demand for our platform, resulting in yet another strong quarter that exceeded our guidance on both top and bottom line. We are leading the industry towards Zero Trust Everywhere by transforming security from legacy appliance-based to a Zero Trust architecture,” said Jay Chaudhry, CEO of Zscaler.

Outlook: Zscaler expects third-quarter revenue in a range of $665 million to $667 million, versus the $667.37 million estimate, and EPS of 75 cents to 76 cents per share, versus the 74 cent estimate.

ZS Price Action: According to data from Benzinga Pro, Zscaler shares were up 5.41% after hours at $207.07 on Wednesday.  

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