Companies /Technology

Zscaler Inc

NASDAQ: ZS Software - Infrastructure
$185.37
▼ $1.93 (−1.03%) today
Markets open · 3:01pm ET

Q3 2025 Earnings

Reported May 29, 2025, 4:08pm ET · SEC source
$0.84
Beat +10.77%
EPS · est. $0.76
$678.0M
Beat +1.64%
Revenue · est. $667.1M
+6.9%
Beating market
ZS vs S&P since report
10 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−6%−3%0+3%May 29May 30report 4:08pm ETearnings−0.2%+2.5%
−6%−3%0+3%May 29May 30earnings−0.2%+2.5%
ZS +2.5%S&P 500 −0.2%
−6%−3%0+3%May 29May 30report 4:08pm ETearnings−0.2%+2.4%
−6%−3%0+3%May 29May 30earnings−0.2%+2.4%
ZS +2.4%NASDAQ −0.2%
−7%0+7%+14%May 28Jun 6report 4:08pm ETearnings+1.6%+14.5%
−7%0+7%+14%May 28Jun 6earnings+1.6%+14.5%
ZS +14.5%S&P 500 +1.6%
−7%0+7%+14%May 28Jun 6report 4:08pm ETearnings+2.0%+14.5%
−7%0+7%+14%May 28Jun 6earnings+2.0%+14.5%
ZS +14.5%NASDAQ +2.0%
+9.79%
Day of report
+6.34%
Next session
+9.91%
One week
+12.20%
30 days

S&P 500 over the same 30 days: +5.27%.

Did ZS Beat Earnings? Q3 2025 Results

Zscaler delivered a convincing fiscal Q3 2025, posting revenue of $678.03 million, up 22.6% year-over-year and ahead of the $667.10 million consensus, while non-GAAP EPS of $0.84 cleared the $0.76 estimate by 10.77%, reflecting strong operating leverage across its Zero Trust Exchange platform. The results were underpinned by calculated billings rising 25% to $784.51 million and deferred revenue climbing 26% to $1.99 billion, metrics that signal the kind of durable forward demand driving analyst optimism and, in some corners, price targets well above current trading levels. CEO Jay Chaudhry pointed to an explosive surge in enterprise AI and ML tool usage, up over 3,000% in the past year, as a core tailwind reinforcing the urgency of Zscaler's security offerings. <a href="https://247wallst.com/investing/2025/05/29/zscaler-zs-earnings-complete-live-coverage-today/">Looking ahead</a>, the company raised its full-year FY2025 revenue outlook to approximately $2.66 billion and guided Q4 revenue to $705 million to $707 million, with non-GAAP EPS of $0.79 to $0.80.

Key Takeaways
  • 23% year-over-year revenue growth driven by expanding Zero Trust Exchange platform adoption
  • 25% year-over-year growth in calculated billings to $784.5 million
  • 26% year-over-year growth in deferred revenue to $1,985.0 million
  • Non-GAAP operating margin maintained at 22% of revenue
  • Enterprise AI/ML tool usage increased over 3,000% in the past year, increasing demand for AI security

“We delivered outstanding Q3 results as an increasing number of customers adopt our expanding Zero Trust Exchange platform. We enable customers to realize Zero Trust Everywhere while lowering operational cost and complexity.”

Zscaler CEO, on the earnings call

Forward Guidance & Outlook

For Q4 FY2025, Zscaler expects revenue of $705 million to $707 million, non-GAAP operating income of $152 million to $154 million, and non-GAAP EPS of approximately $0.79 to $0.80 on approximately 164 million diluted shares. For full-year FY2025, the company expects revenue of approximately $2.659 billion to $2.661 billion, calculated billings of $3.184 billion to $3.189 billion, non-GAAP operating income of $573 million to $575 million, and non-GAAP EPS of $3.18 to $3.19 on approximately 163 million diluted shares, using a 23% non-GAAP tax rate.

ZS YoY Financials

Q3 2025 vs Q3 2024 · SEC filings Q3 2024 Q3 2025
$0$200.0M$400.0M$600.0M$553.2M$678.0MRevenue$434.1M$522.1MGross Profit
$0$200.0M$400.0M$600.0MRevenueGross Profit

Figures from SEC filings and company reports. Not investment advice.