Companies /Technology

Zscaler Inc

NASDAQ: ZS Software - Infrastructure
$182.83
▼ $4.47 (−2.39%) today
Markets open · 10:42am ET

Q4 2025 Earnings

Reported Sep 2, 2025, 4:06pm ET · SEC source
$0.89
Beat +11.03%
EPS · est. $0.80
$719.2M
Beat +1.71%
Revenue · est. $707.1M
+8.9%
Beating market
ZS vs S&P since report
10 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−9%−6%−3%0Sep 2Sep 3report 4:06pm ETearnings+0.2%−7.7%
−9%−6%−3%0Sep 2Sep 3earnings+0.2%−7.7%
ZS −7.7%S&P 500 +0.2%
−8%−4%0Sep 2Sep 3report 4:06pm ETearnings+0.3%−7.5%
−8%−4%0Sep 2Sep 3earnings+0.3%−7.5%
ZS −7.5%NASDAQ +0.3%
−9%−6%−3%0Sep 2Sep 10report 4:06pm ETearnings+1.5%−1.9%
−9%−6%−3%0Sep 2Sep 10earnings+1.5%−1.9%
ZS −1.9%S&P 500 +1.5%
−8%−4%0Sep 2Sep 10report 4:06pm ETearnings+2.2%−1.9%
−8%−4%0Sep 2Sep 10earnings+2.2%−1.9%
ZS −1.9%NASDAQ +2.2%
−1.45%
Day of report
−0.86%
Next session
+3.03%
One week
+12.87%
30 days

S&P 500 over the same 30 days: +3.96%.

Did ZS Beat Earnings? Q4 2025 Results

Zscaler closed fiscal 2025 on a high note, delivering a fourth quarter that beat Wall Street on both the top and bottom lines and reinforced the company's standing as a centerpiece of enterprise cloud security. Non-GAAP EPS of $0.89 cleared the $0.80 consensus by 11.25%, while revenue of $719.23 million topped estimates by 1.71% and grew 21.3% year over year, driven in large part by annual recurring revenue crossing the $3.02 billion threshold, a 22% year-over-year gain that signals durable demand for Zero Trust and AI-driven security architectures. Calculated billings surged 32% to $1.20 billion, and deferred revenue climbed to $2.47 billion, providing substantial forward visibility heading into fiscal 2026. <a href="https://247wallst.com/investing/2025/09/02/live-will-zscaler-surge-after-earnings/">Investors watching the print</a> will also note that management guided full-year fiscal 2026 revenue of roughly $3.27 billion to $3.28 billion, representing approximately 22% growth at the midpoint, with non-GAAP EPS of $3.64 to $3.68, implying continued margin expansion as enterprise adoption of AI security solutions accelerates.

Key Takeaways
  • 21% year-over-year revenue growth driven by Zero Trust and AI security demand
  • 32% year-over-year calculated billings growth to $1.2 billion
  • 22% ARR growth reaching $3.015 billion milestone
  • 30% year-over-year deferred revenue growth indicating strong forward visibility
  • Highest ever non-GAAP operating margin for a quarter at 22%

“We had an outstanding Q4, in which we achieved a new milestone of more than $3 billion of Annual Recurring Revenue while achieving our highest ever operating margin for a quarter. We believe Zscaler's Zero Trust and AI security solutions are imperative in today's world and are driving robust demand.”

Zscaler CEO, on the earnings call

Forward Guidance & Outlook

For Q1 fiscal 2026, Zscaler expects revenue of $772 million to $774 million, non-GAAP operating income of $166 million to $168 million, and non-GAAP EPS of approximately $0.85 to $0.86 on ~167 million diluted shares. For full-year fiscal 2026, the company expects ARR of $3.676 billion to $3.698 billion, revenue of approximately $3.265 billion to $3.284 billion, non-GAAP operating income of $728 million to $736 million, and non-GAAP EPS of $3.64 to $3.68 on approximately 169 million diluted shares, all assuming a 23% non-GAAP tax rate.

ZS YoY Financials

Q4 2025 vs Q4 2024 · SEC filings Q4 2024 Q4 2025
$0$300.0M$600.0M$592.9M$719.2MRevenue$462.1M$547.0MGross Profit$-43,324,375$-32,242,000Operating Income$-21,475,870$-17,578,000Net Income
$0$300.0M$600.0MRevenueGross ProfitOperating IncomeNet Income

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