Zscaler Stock Leads Nasdaq Gainers Thursday
Key Takeaways
Zscaler (
ZS
) was a rare bright spot for the
Nasdaq
on Thursday, with shares surging almost 6% a day after the cybersecurity firm reported better-than-expected results and offered a strong outlook.
The San Jose, Calif.-based company, which led Nasdaq gainers on a day the tech-heavy index was down more than 2%, reported fiscal 2025 second-quarter adjusted
earnings per share (EPS)
of 78 cents on revenue that jumped 23% year-over-year to $647.9 million. Both measures topped analysts’ estimates compiled by Visible Alpha.
For the third quarter, Zscaler said it expects adjusted EPS of 75 cents to 76 cents on revenue of $665 million to $667 million. For the full year, it sees adjusted EPS of $3.04 to $3.09 on revenue of $2.64 billion to $2.654 billion. Each figure surpassed consensus projections.
CEO Sees ‘Significant Upsell Opportunities’ With Government Efficiency Push
Zscaler CEO Jay Chaudhry said on the company’s earnings call Wednesday that he believes the firm stands to benefit from the Trump administration’s efficiency push.
“Having landed in nearly all the cabinet-level federal agencies and with significant upsell opportunities still remaining, we are well-positioned to benefit from the government’s efficiency measures,” Chaudhry said on the call, according to a transcript provided by AlphaSense.
With today’s advance, Zscaler stock moved into positive territory for the past 12 months. They are up about 15% since the start of the year.
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