FinanceEarnings
Zscaler (ZS) Q3 2026 Earnings: Key Takeaways and Market Reaction
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FinanceEarnings
Zscaler (ZS) Q1 2025 Earnings: What to Expect
about 1 year agoUS
Cloud security platform Zscaler (NASDAQ:ZS) is set to report its Q1 2025 earnings after market close tomorrow. Investors are keen to see if the company can maintain its growth trajectory amidst a competitive landscape. This article provides a preview of what to expect from the report.
Key Insights
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Zscaler beat analysts’ revenue expectations by 2.1% last quarter, reporting revenues of $647.9 million, up 23.4% year-on-year.
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Analysts expect Zscaler’s revenue to grow 20.6% year-on-year to $667 million this quarter, a slowdown from the 32.1% increase in the same quarter last year.
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Adjusted earnings are expected to come in at $0.76 per share.
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Analysts covering Zscaler have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.
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Peers in the cybersecurity segment have shown mixed results: Palo Alto Networks delivered year-on-year revenue growth of 15.3%, while Qualys reported revenues up 9.7%.
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There has been positive sentiment among investors in the cybersecurity segment, with share prices up 8.5% on average over the last month. Zscaler is up 14.5% during the same time.
Why this matters: Understanding Zscaler's earnings performance provides insights into the overall health and growth potential of the cloud security sector. Investors and industry watchers can use this information to make informed decisions and assess the company's competitive positioning.
In-Depth Analysis
Zscaler's upcoming earnings report is crucial for assessing its performance in the cloud security market. Last quarter, the company demonstrated strong growth with a 23.4% year-on-year increase in revenue, beating analyst expectations. However, the anticipated growth rate for this quarter is expected to slow down to 20.6%, reflecting increasing competition and evolving market dynamics.
Analysts' estimates have remained stable over the past month, indicating a consensus view on Zscaler's near-term prospects. The performance of its peers, such as Palo Alto Networks and Qualys, offers additional context. Palo Alto Networks reported a 15.3% revenue increase, while Qualys saw a 9.7% rise. These figures suggest that while the cybersecurity sector is generally healthy, growth rates vary among companies.
Investor sentiment towards cybersecurity stocks has been positive, with an average share price increase of 8.5% over the last month. Zscaler has outperformed this average with a 14.5% increase, reflecting strong investor confidence leading up to the earnings release.
Actionable Takeaways:
1.
Monitor Zscaler's revenue growth and compare it against analyst expectations and peer performance.
2.
Pay attention to any revisions in analyst estimates following the earnings release.
3.
Consider the broader market trends and investor sentiment in the cybersecurity sector when evaluating Zscaler's stock.
FAQs
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Q: What were Zscaler's revenues last quarter?
Zscaler reported revenues of $647.9 million last quarter, up 23.4% year-on-year.
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Q: What is the expected revenue growth for this quarter?
Analysts expect Zscaler’s revenue to grow 20.6% year-on-year to $667 million this quarter.
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Q: How have Zscaler's peers performed recently?
Palo Alto Networks reported year-on-year revenue growth of 15.3%, while Qualys reported revenues up 9.7%.
Key Takeaways
Zscaler's Q1 2025 earnings report is expected to show continued growth, albeit at a slower pace than the previous quarter. The company's performance should be viewed in the context of the broader cybersecurity market and the performance of its peers. Key takeaways include monitoring revenue growth, analyst estimates, and overall investor sentiment to make informed decisions.
Discussion
What are your expectations for Zscaler's earnings report? Do you think they will beat estimates? Share your thoughts in the comments below!
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