Zscaler Inc Reports Strong Q1 Results, Analysts Adjust Forecasts

Zscaler Inc (NASDAQ: ZS) delivered impressive financial results for its fiscal first quarter, exceeding analyst expectations. The company reported a first-quarter revenue of $628 million, surpassing the consensus estimate of $606.19 million.

In addition to strong revenue figures, Zscaler also announced adjusted earnings of 77 cents per share, which exceeded analyst estimates of 63 cents per share, according to data from Benzinga Pro.

Jay Chaudhry, the chairman and CEO of Zscaler, commented on the positive results, stating, "Growing customer engagements and strong sales execution drove a solid first quarter with all metrics exceeding our guidance. The combination of Zero Trust and AI is creating exciting new opportunities, which we are well positioned to capture with our large and expanding platform."

Looking ahead, Zscaler forecasts its fiscal second-quarter revenue to fall between $633 million and $635 million, slightly below analyst predictions that average around $633.84 million. For adjusted earnings, the company anticipates a range of 68 to 69 cents per share, against estimates of 69 cents per share. Additionally, Zscaler projects full-year 2025 revenue to be approximately between $2.623 billion and $2.643 billion, while adjusted earnings are expected to be in the range of $2.94 to $2.99 per share.

After the earnings announcement, Zscaler's stock saw a modest increase, closing up by 0.9% at $208.51 on Monday.

Following these results, several analysts have revised their price targets for Zscaler:

• Canaccord Genuity's analyst Kingsley Crane maintained a Buy rating, raising the price target from $220 to $230.
• Deutsche Bank's analyst Patrick Colville also maintained a Buy rating, increasing the price target from $200 to $225.
• Morgan Stanley's analyst Hamza Fodderwala maintained an Equal-Weight rating but lowered the price target from $215 to $205.
• Piper Sandler's analyst Rob Owens maintained an Overweight rating and raised the price target from $215 to $235.

As Zscaler continues to navigate the dynamic cybersecurity landscape, analysts remain optimistic about its potential for growth and innovation.

Zscaler, Earnings, Analysts