Zscaler Inc (NASDAQ:ZS) reported financial results for the fourth quarter of fiscal 2025 after the market close on Tuesday. Here’s a rundown of the cybersecurity company’s report.
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Q4 Highlights: Zscaler reported fourth-quarter revenue of $719.23 million, beating the consensus estimate of $706.91 million. The company reported fourth-quarter adjusted earnings of 89 cents per share, beating analyst estimates of 80 cents per share, according to Benzinga Pro.
Total revenue increased 21% year-over-year as deferred revenue jumped 30% year-over-year to $2.46 billion and calculated billings grew 32% year-over-year to $1.2 billion. Annual recurring revenue grew 22% year-over-year to approximately $3.02 billion.
Zscaler generated $250.6 million in cash flow from operations and $171.9 million of free cash flow in the fourth quarter. The company ended the quarter with approximately $3.57 billion in cash, cash equivalents and short-term investments.
“We believe Zscaler’s Zero Trust and AI security solutions are imperative in today’s world and are driving robust demand. We recently delivered AI Guardrails for Public and Private apps, and we are rapidly expanding our AI security portfolio to address the emerging risks of AI models and applications,” said Jay Chaudhry, chairman and CEO of Zscaler.
What’s Next: Zscaler expects first-quarter revenue to be in the range of $772 million to $774 million versus estimates of $750.51 million. The company anticipates first-quarter adjusted earnings of 85 cents to 86 cents per share versus estimates of 84 cents per share.
Zscaler expects fiscal 2026 revenue of $3.27 billion to $3.28 billion versus estimates of $2.66 billion. The company anticipates full-year adjusted earnings of $3.64 to $3.68 per share versus estimates of $3.18 per share.
Zscaler’s management team will further discuss the quarter on an earnings call at 4:30 p.m. ET.
ZS Price Action: Zscaler shares were up approximately 52% year-to-date heading into the report. The stock was up 4.08% in after-hours Tuesday, trading at $285.78 at the time of publication, according to Benzinga Pro.
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