Zscaler ZS 2025Q3 Earnings Preview Upside Ahead on Strong Revenue Growth

Forward-Looking Analysis
Zscaler is anticipated to report its fiscal Q3 2025 earnings on May 29th, 2025, with expectations set for an EPS of $0.75. This represents a 14.8% decline from the previous quarter. Analysts are projecting robust revenue growth, with forecasts of $2.5 billion in annual revenue and a 25% year-over-year increase. The market has reacted positively to Zscaler's strong financial performance, maintaining a fair value estimate of $213 per share. Despite weaker-than-expected top-line guidance for fiscal 2025, Zscaler's position as a leader in cloud security and its profitable trajectory suggest a favorable outlook. Analysts predict continued growth fuelled by Zscaler's strategic initiatives and market demand for cybersecurity solutions, potentially driving the share price upward in the long term.

Historical Performance Review
In Q2 2025, Zscaler reported revenue of $647.90 million, achieving a gross profit of $499.40 million. However, the company faced a net loss of $7.72 million, with an EPS of $-0.05. Despite the losses, Zscaler's revenue growth indicates strong demand for its cloud security offerings, showcasing its resilience in an evolving tech landscape.

Additional News
Recent developments at Zscaler highlight its ambitious growth plans and market leadership in cloud security. The company is expected to achieve significant revenue growth and maintain profitability in the coming year, with projections of $2.5 billion in annual revenue and 25% year-over-year growth. Zscaler's leadership continues to focus on expanding its product offerings and enhancing its cybersecurity solutions to meet increasing market demand. As a key player in the cybersecurity industry, Zscaler aims to capitalize on its positioning and strengthen its market presence, potentially driving future growth and shareholder value.

Summary & Outlook
Zscaler's financial health appears strong, with robust revenue growth and profitability expected. The company's strategic focus on enhancing cybersecurity solutions and expanding its market presence serves as a catalyst for growth, aligning with bullish future prospects. While facing challenges with top-line growth projections, Zscaler remains well-positioned to navigate market dynamics, leveraging its leadership in cloud security. Overall, the outlook is positive, with anticipated revenue growth and strategic initiatives supporting long-term shareholder value and potential share price appreciation.