Zscaler, Inc. · ZS · FY2025 Q3 · Calendar Q2 2025

Zscaler raises FY2025 outlook as Z Flex and AI security expand

The call supports a constructive operating narrative: demand for Zero Trust and AI-security offerings, expanding Z Flex adoption, and raised guidance provide evidence of continued growth. The thesis remains conditional on large-deal execution, retention durability, and successful Red Canary integration.

Reported After market closeNASDAQTechnology $37.80B market cap
80quality score

Earnings scorecard

Reported versus consensus
Reported EPS — Consensus $0.75
EPS surprise — Reported versus consensus
Reported revenue — Consensus $667.1M
Revenue surprise — Reported versus consensus

Market reaction

event-close to next-session close
Stock move +9.8% Event window
SPY move -0.1% Same window
Abnormal move +9.9% Stock minus SPY
Volume 4.1× Versus trailing sessions
Subsequent drift +13.9% Up to 20 sessions
ZSSPY benchmark

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Transcript intelligence

What changed

Relative to the prior quarter, Zscaler emphasized Z Flex bookings, the Red Canary acquisition, broader AI-security capabilities, and a planned shift to ARR as the primary metric in FY2026; FY2025 guidance was raised.

Guidance delta

Management raised FY2025 guidance across all metrics; no current-quarter actuals were supplied in the page facts.

Key takeaways

  • Management described robust revenue and ARR growth and said ARR remained on track to exceed $3 billion by year-end.
  • Z Flex generated significant bookings and is planned for broader customer expansion.
  • Red Canary is intended to add MDR and AI reasoning capabilities to the AI-security roadmap.
  • Management plans to make ARR the primary metric beginning in FY2026.

Management priorities

  • Scale Zero Trust Everywhere, Data Security Everywhere, and Agentic Operations.
  • Expand Z Flex, private-AI protection, and LLM-proxy offerings.
  • Integrate Red Canary while retaining its ARR base.
  • Increase Zero Trust Branch deployments and broaden enterprise adoption.

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Earnings History

Estimate Beat Miss Match
ZS REVENUE earnings history estimate and actual scatter chart 9 reported fiscal quarters and 4 future estimate-only quarters. Q1 '24 estimate $497M Q1 '24 actual $497M, miss Q2 '24 estimate $508M Q2 '24 actual $525M, beat Q3 '24 estimate $536M Q3 '24 actual $553M, beat Q4 '24 estimate $567M Q4 '24 actual $593M, beat Q4 '25 estimate $707M Q4 '25 actual $719M, beat Q1 '26 estimate $773M Q1 '26 actual $788M, beat Q2 '26 estimate $798M Q2 '26 actual $816M, beat Q3 '26 estimate $835M Q3 '26 actual $850M, beat Q4 '26 estimate $877M Q4 '26 actual $898M, beat Q1 '27 estimate $938M Q2 '27 estimate $957M Q3 '27 estimate $992M Q4 '27 estimate $1B
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Analyst Consensus ?

ConsensusBuy54 ratings
Bullish4379.6%
Neutral1018.5%
Bearish11.9%

Analyst 52W Price Targets

$233.73Current
$105Low
$237.17Average
$415High

Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 11, 2026. Not an FN2 forecast.

Firm-level rating actions

FMP grade actions identify the grading firm, not a named analyst.

FirmRatingPrior ratingActionDate
Citizens Market Outperform Market OutperformMaintainOct 9, 2026
Wells Fargo Overweight OverweightMaintainOct 7, 2026
Wedbush Outperform OutperformMaintainOct 7, 2026
UBS Buy BuyMaintainOct 7, 2026
Truist Securities Buy BuyMaintainOct 7, 2026
Show 49 more rating actions

Named analyst price targets

Upside is calculated against the persisted current price $233.73. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
ScotiabankAnalyst unavailable$255$211.8 +9.1%Oct 7, 2026
JefferiesAnalyst unavailable$250$211.27 +7.0%Oct 7, 2026
WedbushAnalyst unavailable$240$212.23 +2.7%Oct 7, 2026
NeedhamMike Cikos$255$212.25 +9.1%Oct 7, 2026
Canaccord GenuityAnalyst unavailable$250$212.25 +7.0%Oct 7, 2026
See 199 more

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Company context

Snapshot as of publication

Globally recognized, Zscaler, Inc. functions as a leading provider of cloud-based security solutions. Its core offerings include Zscaler Internet Access (ZIA), which ensures secure connectivity for a diverse range of entities – including users, servers, operational technology (OT), and IoT devices – when accessing external resources like software-as-a-service (SaaS) applications and general internet destinations. Complementing this, the Zscaler Private Access (ZPA) solution facilitates secure entry to internal applications residing in private or public clouds and traditional data centers. Zscaler also delivers Zscaler Digital Experience (ZDX), a tool that assesses the complete user journey across various business applications. ZDX then generates a clear, digestible digital experience score for individual users, specific applications, and different locations within an organization. Furthermore, the company's portfolio extends to advanced workload segmentation solutions.…

Historical context

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Sources

  1. Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
  2. FN2 earnings calendar · 2025-05-15T00:01:33.065679+00:00
  3. Polygon adjusted daily market bars · 2026-10-11T03:20:43.444277+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-11T03:20:43.441245+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated · As of 2026-10-11. For educational purposes only; not investment advice.