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Zscaler 2025 Q4 Earnings Wider Loss Amid Strong Revenue Growth
Generated by AI AgentAinvest Earnings Report Digest
Tuesday, Sep 2, 2025 9:07 pm ET2min read
Aime SummaryZscaler (ZS) reported its fiscal 2025 Q4 earnings on Sep 02nd, 2025, with revenue rising 21.3% to $719.23 million compared to the prior year. Despite the robust revenue growth, the company’s net loss widened to $17.58 million, or $0.11 per share, from $14.88 million, or $0.10 per share, the same period in 2024. The stock has seen mixed performance, with a 1.84% decline on the latest trading day, but a 1.82% gain over the past week. The company continues to navigate financial challenges while expanding its market presence.
Revenue
Zscaler's total revenue surged by 21.3% in 2025 Q4 to $719.23 million, compared to $592.87 million in the same period in 2024, driven by strong customer adoption of its AI security solutions. This growth exceeded guidance and marked a significant milestone for the company.
Earnings/Net Income
Zscaler’s losses deepened in 2025 Q4, with the company reporting a net loss of $17.58 million, or $0.11 per share, compared to a loss of $14.88 million, or $0.10 per share, in 2024 Q4. This represents a 18.1% increase in the loss year-over-year. The company has now posted losses for the 9th consecutive year in this fiscal quarter, highlighting ongoing financial challenges despite robust revenue growth.
Price Action
Zscaler’s stock has experienced mixed performance in recent trading sessions. The stock price declined 1.84% during the latest trading day, but saw a 1.82% gain over the most recent full trading week. Month-to-date, the stock has dropped 3.85%, reflecting market uncertainty around the company’s profitability despite strong revenue growth.
Post-Earnings Price Action Review
Zscaler’s Q4 results included strong revenue growth and a record operating margin of 22%. Despite the financial losses, the company demonstrated significant momentum in securing nearly 40% of the Global 2000 and over 45% of the Fortune 500. With ARR surpassing $3 billion, continues to expand its offerings in AI security, Zero Trust, and Data Security. The company’s Z Flex program has contributed to the growth of large multi-year deals, reinforcing its market leadership in cloud security.
CEO Commentary
Jay Chaudhry, Chairman and CEO of Zscaler, highlighted the company’s Q4 2025 performance, noting that it exceeded guidance with 21% year-over-year revenue growth and an operating margin of 22%, a record for the company. He emphasized strong customer demand for Zscaler’s AI security solutions, including AI Guard and JNI. Chaudhry also mentioned that the company now secures nearly 40% of the Global 2000 and over 45% of the Fortune 500. With ARR surpassing $3 billion, driven by 22% year-over-year growth, Chaudhry outlined three strategic growth factors: AI security, Zero Trust Everywhere, and Data Security Everywhere, all exceeding $1 billion in ARR. He expressed optimism about innovation in AI-powered SOC, Zero Trust Cloud, and Data Security, noting the Z Flex program’s success in driving large multi-year deals. Chaudhry concluded with confidence in Zscaler’s position to disrupt the $100 billion security market through innovation and scale.
Guidance
For fiscal 2026, Zscaler guided to ARR in the range of $3.676 billion to $3.698 billion, representing 21.9%-22.7% growth, and revenue of $3.265 billion to $3.284 billion, with 22%-23% growth. The company expects to operate at a Rule of 50, maintaining profitable growth. Gross margin is projected at ~80% for Q1, with operating profit in the range of $166 million to $168 million and full-year operating profit of $728 million to $736 million. Earnings per share are expected to range between $3.64 and $3.68, assuming a 23% tax rate and 169 million shares.
Additional News
Recent developments include the launch of Zscaler’s AI security solutions, including AI Guard and JNI, which are gaining traction in the market. The company also announced the success of its Z Flex program, which has driven significant large multi-year deals. Additionally, Zscaler has expanded its market presence by securing nearly 40% of the Global 2000 and over 45% of the Fortune 500. These developments underscore Zscaler’s leadership in cloud security and its ability to drive innovation in AI-powered security solutions.
Revenue
Zscaler's total revenue surged by 21.3% in 2025 Q4 to $719.23 million, compared to $592.87 million in the same period in 2024, driven by strong customer adoption of its AI security solutions. This growth exceeded guidance and marked a significant milestone for the company.
Earnings/Net Income
Zscaler’s losses deepened in 2025 Q4, with the company reporting a net loss of $17.58 million, or $0.11 per share, compared to a loss of $14.88 million, or $0.10 per share, in 2024 Q4. This represents a 18.1% increase in the loss year-over-year. The company has now posted losses for the 9th consecutive year in this fiscal quarter, highlighting ongoing financial challenges despite robust revenue growth.
Price Action
Zscaler’s stock has experienced mixed performance in recent trading sessions. The stock price declined 1.84% during the latest trading day, but saw a 1.82% gain over the most recent full trading week. Month-to-date, the stock has dropped 3.85%, reflecting market uncertainty around the company’s profitability despite strong revenue growth.
Post-Earnings Price Action Review
Zscaler’s Q4 results included strong revenue growth and a record operating margin of 22%. Despite the financial losses, the company demonstrated significant momentum in securing nearly 40% of the Global 2000 and over 45% of the Fortune 500. With ARR surpassing $3 billion, continues to expand its offerings in AI security, Zero Trust, and Data Security. The company’s Z Flex program has contributed to the growth of large multi-year deals, reinforcing its market leadership in cloud security.
CEO Commentary
Jay Chaudhry, Chairman and CEO of Zscaler, highlighted the company’s Q4 2025 performance, noting that it exceeded guidance with 21% year-over-year revenue growth and an operating margin of 22%, a record for the company. He emphasized strong customer demand for Zscaler’s AI security solutions, including AI Guard and JNI. Chaudhry also mentioned that the company now secures nearly 40% of the Global 2000 and over 45% of the Fortune 500. With ARR surpassing $3 billion, driven by 22% year-over-year growth, Chaudhry outlined three strategic growth factors: AI security, Zero Trust Everywhere, and Data Security Everywhere, all exceeding $1 billion in ARR. He expressed optimism about innovation in AI-powered SOC, Zero Trust Cloud, and Data Security, noting the Z Flex program’s success in driving large multi-year deals. Chaudhry concluded with confidence in Zscaler’s position to disrupt the $100 billion security market through innovation and scale.
Guidance
For fiscal 2026, Zscaler guided to ARR in the range of $3.676 billion to $3.698 billion, representing 21.9%-22.7% growth, and revenue of $3.265 billion to $3.284 billion, with 22%-23% growth. The company expects to operate at a Rule of 50, maintaining profitable growth. Gross margin is projected at ~80% for Q1, with operating profit in the range of $166 million to $168 million and full-year operating profit of $728 million to $736 million. Earnings per share are expected to range between $3.64 and $3.68, assuming a 23% tax rate and 169 million shares.
Additional News
Recent developments include the launch of Zscaler’s AI security solutions, including AI Guard and JNI, which are gaining traction in the market. The company also announced the success of its Z Flex program, which has driven significant large multi-year deals. Additionally, Zscaler has expanded its market presence by securing nearly 40% of the Global 2000 and over 45% of the Fortune 500. These developments underscore Zscaler’s leadership in cloud security and its ability to drive innovation in AI-powered security solutions.
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