Zscaler Stock Rises After Earnings Beat and Upbeat Guidance
Zscaler reported better-than-expected fiscal fourth-quarter results, with earnings per share of $1.19 (adjusted) versus an estimate of $1.09. Revenue came in at $898 million against expectations of $877 million, marking a 25% year-over-year increase. The company also narrowed its net loss to $3.37 million from $17.58 million the previous year. CEO Jay Chaudhry highlighted strong momentum for Zscaler's agentic security tool and expressed optimism about long-term growth in AI-related cybersecurity solutions, which he views as a significant annual recurring revenue opportunity. The company raised its guidance for both Q1 2024 and full-year fiscal 2024, with projected revenues of $935–$939 million (Q1) and $3.91 billion to $3.94 billion (full year), exceeding analyst estimates. Despite the strong earnings report and guidance, Zscaler shares have fallen by 20% this year amid broader market movements in cybersecurity stocks driven by AI-related demand.
Tickers: $ZS
Topics: AI tools cybersecurity stock performance