Zscaler Shares Plummet Despite Strong Q1 Earnings Report
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 25 2025
0mins
Should l Buy ZS?
Source: Benzinga
Earnings Report Overview: Zscaler, Inc. reported first-quarter earnings of 96 cents per share, surpassing analyst expectations of 86 cents, with quarterly revenue of $788.1 million, exceeding the estimate of $773.75 million.
Deferred Revenue Growth: The company noted a 32% year-over-year increase in deferred revenue, totaling $2.35 billion as of October 31, 2025, indicating strong demand for its services.
CEO's Statement: CEO Jay Chaudhry highlighted the robust demand for Zscaler's Zero Trust and AI Security platform, with over $3.2 billion in Annual Recurring Revenue, growing over 25% year-over-year.
Stock Performance: Despite the positive earnings report, Zscaler's stock fell 7.77% to $267.21 in extended trading following the announcement.
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Analyst Views on ZS
Wall Street analysts forecast ZS stock price to rise
30 Analyst Rating
24 Buy
6 Hold
0 Sell
Strong Buy
Current: 134.680
Low
260.00
Averages
325.62
High
390.00
Current: 134.680
Low
260.00
Averages
325.62
High
390.00
About ZS
Zscaler, Inc. is a cloud security company. The Company has developed a platform incorporating core security functionalities needed to enable fast and secure access to cloud resources based on identity, context and an organization’s policies. Its Zscaler Zero Trust Exchange platform protects thousands of customers from cyberattacks and data loss by securely connecting users, devices, and applications in any location. Its solution is a purpose-built, multi-tenant, distributed cloud platform that incorporates the security functionality needed to enable users, applications, and devices to safely and efficiently utilize authorized applications and services based on an organization’s business policies. It delivers its solutions using a software-as-a-service (SaaS) business model and sells subscriptions to customers to access its cloud platform, together with related support services. It offers a security platform that combines its platform with automated security operations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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