Zscaler Stock Jumps Premarket After Beat-And-Raise Q2: Retail Optimism Abounds

CEO Jay Chaudhry said the growing adoption of Zero Trust and AI drove strong demand for the company’s platform.
 Building with logo for ZScaler in the Silicon Valley, Santa Clara, California, January 3, 2021.
Building with logo for ZScaler in the Silicon Valley, Santa Clara, California, January 3, 2021. (Photo by Smith Collection/Gado/Getty Images)
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Shanthi M·Stocktwits
Updated Jul 02, 2025 | 8:31 PM GMT-04
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Zscaler, Inc. (ZS) stock climbed in Thursday’s premarket after the cybersecurity vendor announced forecast-beating quarterly results and issued upbeat forward guidance.

The San Jose, California-based company reported adjusted earnings per share (EPS) of $0.78 for the second quarter (Q2) of the fiscal year 2025. This compares to the year-ago’s EPS of $0.63 and the Finchat-compiled consensus of $0.69.

Revenue grew 23% year over year (YoY) to $647.9 million, exceeding the mean analysts’ estimate of $635.35 million.

The headline numbers also came in ahead of the guidance issued in early December that modeled EPS and revenue of $0.68 to $0.69 and $633 million to $635 million, respectively.

Zscaler Chairman and CEO Jay Chaudhry said, “Growing adoption of Zero Trust and [artificial intelligence] AI is driving strong demand for our platform, resulting in yet another strong quarter that exceeded our guidance on both top and bottom line.”

The company’s Zero Trust cloud-native platform implements a zero-trust security strategy, which operates on the principle that no user, device, or application is trusted by default.

Among user metrics, deferred revenue climbed 25% YoY to $1.88 billion, slightly slower than the 27% growth in the first quarter (Q1). Calculated billings increased 18% to $742.69 million versus the first quarter’s 13% growth. 

The company ended the quarter with a cash position of $2.88 billion.

Looking ahead, Zscaler guided third-quarter (Q3) adjusted EPS and revenue in the range of $0.75 to $0.76 and $665 million to $667 million, respectively, compared to the consensus estimate of $0.74 and $666.22 million.

The company raised its fiscal year 2025 adjusted EPS guidance to a range of $3.04 to $3.09, from $2.94 to $2.99 and revenue guidance to a range of $2.64 billion to $2.654 billion from $2.623 billion to $2.643 billion.

On Stocktwits, retail sentiment toward Zscaler stock improved to ‘extremely bullish’ (98/100) from the ‘neutral’ mood that prevailed a day ago. The message volume perked to ‘extremely high’ levels.

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ZS sentiment and message volume March 6, premarket as of 6:01 am ET | Source: Stocktwits

A bullish watcher shared a technical chart and said the next stop is at the $212 level. 

Calling the quarterly release a “great report,” another user said they expected a violent move to the upside.

Zscaler stock climbed 4.49% to $205.28 in premarket trading. It has gained about 9% year-to-date.

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