Zscaler's Q4 Surge: Impressive Revenue and Earnings Ahead

Author: Dylan Bailey Updated: 09-02-2025 04:42 PM

Strong Financial Results from Zscaler Inc

Zscaler Inc (NASDAQ: ZS) has announced robust financial results for the fourth quarter of its fiscal year, showcasing impressive growth metrics. This cybersecurity firm has demonstrated a strong performance, which is attracting interest from investors and analysts alike.

Q4 Performance Overview

In the last quarter, Zscaler reported a remarkable revenue of $719.23 million, exceeding the consensus estimate of $706.91 million. This 21% increase year-over-year showcases the company's solid demand in the cybersecurity space. Additionally, adjusted earnings reached 89 cents per share, outpacing the anticipated 80 cents.

Key Financial Metrics

The company’s financial health is evidenced by a significant rise in deferred revenue, which spiked 30% year-over-year, bringing it to $2.46 billion. Furthermore, calculated billings surged 32% year-over-year, totaling $1.2 billion, underscoring Zscaler's growing footprint in the market. Annual recurring revenue also saw a notable increase, reaching approximately $3.02 billion, reflecting a 22% growth.

Cash Flow Insights

Zscaler showcased strong cash flow performance as well, generating $250.6 million from operations and achieving $171.9 million in free cash flow during the fourth quarter. At the conclusion of the quarter, the company held approximately $3.57 billion in cash, cash equivalents, and short-term investments. This financial cushion gives Zscaler the flexibility to further invest in growth opportunities.

Leadership Comments

CEO Jay Chaudhry expressed confidence in the company’s innovative direction, stating, "We believe Zscaler’s Zero Trust and AI security solutions are imperative in today’s world and are driving robust demand. Our AI Guardrails for both public and private applications are a testament to our commitment to staying at the forefront of cybersecurity." This commitment underscores the company's proactive approach to emerging risks associated with AI technologies.

Future Projections

Looking forward, Zscaler expects to generate first-quarter revenue between $772 million and $774 million, surpassing current estimates of $750.51 million. Likewise, the anticipated adjusted earnings range from 85 cents to 86 cents per share, again higher than the expected 84 cents.

Longer-Term Outlook

For fiscal 2026, Zscaler forecasts revenue between $3.27 billion and $3.28 billion, dramatically exceeding estimates of $2.66 billion. Expected adjusted earnings for the full year are projected between $3.64 and $3.68 per share, significantly above the estimated $3.18 per share.

Stock Performance Highlights

Following the announcement of these impressive results, Zscaler shares experienced a strong after-hours trading session, reflecting a 4.08% increase, reaching $285.78. Year-to-date, the stock was up approximately 52%, demonstrating positive momentum as investor confidence in the company remains high.

Frequently Asked Questions

What were Zscaler's Q4 revenue figures?

Zscaler reported Q4 revenue of $719.23 million, exceeding expectations of $706.91 million.

How much free cash flow did Zscaler generate?

The company generated $171.9 million in free cash flow during the fourth quarter.

What is Zscaler’s projection for fiscal 2026 revenue?

Zscaler projects fiscal 2026 revenue to be between $3.27 billion and $3.28 billion.

Who is the CEO of Zscaler?

The CEO of Zscaler is Jay Chaudhry, who emphasizes the importance of their Zero Trust and AI security solutions.

What was the stock price movement after the earnings report?

Following the earnings report, Zscaler's stock rose by 4.08%, trading at $285.78.

About The Author

My name is Dylan Bailey, and I am 28 years old. I am an author and an expert on the stock market who specializes in publicly traded companies. Early fascination with the stock market inspired me to seek a finance degree and then delve deeply into the world of stocks. I have developed over the years my abilities to spot investment prospects, assess business performance, and analyze market trends.

My books and articles try to help regular investors understand the nuances of the stock market. Anyone can, in my opinion, make wise investment choices and succeed financially if they have the correct information and resources. In my writing, I combine in-depth research with practical insights and advice that can be put into action. This is done with the intention of assisting readers in navigating the constantly shifting landscape of publicly traded companies.

In addition to writing, I also host webinars and workshops, where I give presentations and share my knowledge with a wider audience. I also write for top financial journals and show up as a guest analyst on financial news shows. I like to travel, spend time with my family, and keep active by playing different sports when I'm not buried in market research.

My goal is to enable people to choose wisely and consciously in their investments, so taking charge of their financial futures. By my work, I hope to create a community of informed and self-assured investors prepared to take advantage of the chances presented by the stock market.

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