Zscaler (ZS) posted robust third-quarter results for the fiscal year ending April 2025, reporting $678.03 million in revenue—a 22.6% jump from the same period last year. The company also delivered an earnings per share (EPS) of $0.84, slightly lower than the $0.88 posted a year ago but ahead of Wall Street’s projection of $0.75, marking a 12% EPS beat.
Revenue surpassed the Zacks Consensus Estimate of $666.39 million by 1.75%, reflecting strong operational momentum.
Among the key performance indicators, billings came in at $784.51 million, just shy of the average analyst estimate of $792.21 million. Remaining performance obligations totaled $4.98 billion, exceeding the $4.73 billion consensus from three analysts.
Zscaler’s dollar-based net retention rate stood at 114%, narrowly missing the expected 115%. Revenue from direct customers surged 57.6% year-over-year to $80.14 million, beating the $76.85 million estimate. Revenue through channel partners also rose 19% to $597.89 million, above the projected $589.01 million.
Over the past month, Zscaler’s stock has gained 12.2%, outperforming the S&P 500’s 6.7% increase. The stock currently holds a Zacks Rank #3 (Hold), suggesting it may track the broader market in the near term.
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News Source: Finance.Yahoo.com
