Zscaler shares rise after stronger report and outlook
Shares of cybersecurity company Zscaler surged on Thursday after its financial results for the fourth fiscal quarter exceeded Wall Street expectations, while its outlook for the next quarter and the full year came in above analysts’ estimates. According to CNBC Top News, the company’s shares gained 9.79%.
Quarterly results
Zscaler’s adjusted earnings per share were $1.19, compared with the $1.09 forecast by LSEG. Revenue reached $898 million, while analysts had expected $877 million. On an annual basis, revenue increased by 25%, from approximately $719 million.
At the same time, the company recorded a net loss of $3.37 million, or 2 cents per share. A year earlier, its net loss was $17.58 million, or 11 cents per share.
Zscaler’s annual recurring revenue rose 25% year over year to $3.77 billion. This figure also exceeded the StreetAccount consensus forecast of $3.75 billion.
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AI agent security
Chief Executive Jay Chaudhry linked the quarterly results to the company’s Zero Trust architecture and technologies. He said he was optimistic about the prospects for the AI agent solution launched earlier this year. According to him, the product is already gaining initial traction and could rapidly accelerate growth in 2028–2029.
Chaudhry described protecting artificial intelligence systems as one of the biggest opportunities in cybersecurity. Over the past year, order volume in this area totaled $100 million, while quarterly growth in the metric reached 50%, he said.
Company outlook
For the first quarter, Zscaler forecasts revenue of $935 million to $939 million and adjusted earnings of $1.15 to $1.16 per share. Analysts’ estimates called for $927 million in revenue and earnings of $1.08 per share.
For the full year, the company expects revenue of $3.91 billion to $3.94 billion and adjusted earnings of $4.86 to $4.90 per share. Market forecasts stood at $3.90 billion and $4.60 per share, respectively.
