Zscaler (NASDAQ:ZS) delivered strong second-quarter results that exceeded expectations, sending its shares up around 6% intra-day today. The firm also raised its full-year billings outlook, reinforcing confidence in its growth trajectory.
For the quarter, Zscaler reported earnings per share of $0.78, outpacing analyst estimates of $0.69. Revenue climbed to $647.9 million, surpassing the consensus forecast of $634.4 million. The company attributed its performance to growing demand for Zero Trust and AI-driven cybersecurity solutions.
Billings for the quarter reached $742 million, exceeding expectations by 3.2% and reflecting an 18% year-over-year acceleration. Annual recurring revenue (ARR) surpassed $2.7 billion, marking a 23% increase from the previous year, with expectations to exceed $3 billion by year-end. Additionally, net revenue retention (NRR) improved by one percentage point to 115%, signaling strong customer engagement and upsell momentum.
Zscaler now forecasts full-year fiscal 2025 EPS between $3.04 and $3.09, above Wall Street’s estimate of $2.99. However, revenue guidance of $2.64 billion to $2.65 billion fell slightly below analysts’ projections of $2.69 billion.
The company also raised its full-year billings growth outlook to 20.5% from a previous estimate of 19.6%, fully reflecting its quarterly outperformance.