Zscaler Stock Soars on Strong Q2 Earnings and Optimistic Outlook

The cybersecurity firm exceeded expectations in revenue, earnings, and billings, while forecasting continued growth driven by government contracts and Zero Trust adoption.

• Zscaler reported fiscal Q2 2025 earnings of $0.78 per share on $647.9 million in revenue, surpassing analyst estimates of $0.69 per share and $634 million in revenue.
• The company raised its fiscal year revenue growth guidance to 22%, citing strong demand for its Zero Trust security platform and government efficiency initiatives.
• Annual recurring revenue (ARR) grew 23% year-over-year to exceed $2.7 billion, with high-value customer accounts expanding significantly.
• Zscaler's adjusted operating margin improved by 200 basis points to 22%, reflecting enhanced operational efficiency alongside revenue growth.
• The stock surged nearly 6% on Thursday, making it a standout performer on a declining Nasdaq, and analysts see potential for further upside in valuation.

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