Zscaler Inc. reported better-than-expected earnings and revenue for its fiscal third quarter of 2025 and raised its outlook, leading to a 3% rise in its shares in late trading.
For the quarter ended April 30, Zscaler reported adjusted earnings per share of 84 cents, up from 71 cents year-over-year, on revenue of $678 million, up 23% year-over-year, surpassing analyst expectations.
Zscaler ended the quarter with approximately $2.9 billion in annual recurring revenue, with total contract value exceeding $1 billion, along with various new service launches and updates aimed at enhancing security and user experience.
The company expects adjusted earnings per share of 79 to 80 cents on revenue of $705 million to $707 million for the fiscal fourth quarter, and adjusted earnings per share of $3.18 to $3.19 on revenue of $2.659 billion to $2.661 billion for the full year.