What does ZS's Q3 2025 EPS forecast mean for investors?

**Zscaler's (ZS) Q3 2025 EPS forecast suggests a company that is expected to perform well**, which is positive for investors. Here's a detailed analysis: 1. **EPS Forecast Context**: Zscaler's estimated EPS for Q3 2025 is -$0.02. This negative value indicates that the company is expected to report a loss per share during this quarter. However, it's important to consider the broader context. 2. **Historical Performance**: Zscaler has a history of strong financial performance. Its Q2 2025 earnings report showed an impressive adjusted EPS of $0.78 and revenue of $647.9 million. The company's year-over-year revenue growth was 23.4%, and its deferred revenue grew by 25%. 3. **Market Expectations**: Analysts had anticipated a slightly higher EPS of $0.69 for Q3 2025. Despite the slight discrepancy, the company's actual performance is expected to be in line with or slightly below market expectations. 4. **Investor Perception**: The market has reacted positively to Zscaler's earnings reports, with the stock price rising by 5.39% following the release of the Q2 2025 earnings report. This suggests that investors may be optimistic about the company's future performance, despite the slight EPS shortfall in Q3 2025. 5. **Long-Term Outlook**: Zscaler has issued ambitious guidance for the full fiscal year 2025, projecting sales between $2.64 billion and $2.654 billion and an EPS between $3.04 and $3.09. These figures exceed Wall Street estimates, indicating a positive long-term outlook for the company. In conclusion, while Zscaler's Q3 2025 EPS forecast shows a potential loss per share, the broader context of the company's strong financial performance, positive market reactions to previous earnings reports, and ambitious full-year guidance suggest that investors should view this forecast as part of a larger picture of the company's ongoing growth trajectory.