Zscaler Stock Gains On Beat-And-Raise Q3 Amid Rising AI Security Needs: Retail Doubles Down On This Safe Bet

(MENAFN- AsiaNet News) <p>Zscaler, Inc. (ZS) stock climbed over 5% in Thursday's extended session after the cybersecurity vendor announced a quarterly beat and raised its full-year guidance yet again. </p> <p>The San Jose, California-based company reported adjusted earnings per share (EPS) of $0.84 and revenue of $678 million for the third quarter of the fiscal year 2025. </p> <p>The results exceeded the consensus estimates and guidance issued in early March.</p> <p>The year-over-year (YoY) revenue growth was 23%, the same as in the previous quarter.</p> <p>Chairman and CEO Jay Chaudhry said,“We delivered outstanding Q3 results as an increasing number of customers adopt our expanding Zero Trust Exchange platform. We enable customers to realize Zero Trust Everywhere while lowering operational cost and complexity.”</p> <p>He also noted that the artificial intelligence (AI) technology's proliferation has increased the need for AI security. </p> <p>Zscaler guided fourth-quarter adjusted EPS to $0.79-$0.80 and revenue to $705 million-$707 million. Analysts estimate these numbers to be $0.79 and $707.37 million, respectively.</p> <p>The company raised its fiscal year 2025 bottom-line guidance to $3.18-$3.19 from $3.04-$3.09 and revenue outlook to $2.659 billion-$2.661 billion from $2.64 billion-$2.654 billion.</p> <p>Separately, Zscaler announced the appointment of Kevin Rubin as CFO, taking over from Remo Canessa, who announced his intention to retire last year.</p> <p>On Stocktwits, retail sentiment toward Zscaler stock was 'extremely bullish' (91/100) by late Thursday, with the message volume at 'extremely high.'</p> <img> ZS sentiment and message volume as of 3:26 a.m. ET, May 30 | source: Stocktwits <p>Following the earnings, a retailer set his sights on the $300 level for the stock by July.</p> <p>Another user lauded the“great” earnings report.</p> <p>Some said they were buying the stock following the outperformance.</p> <p>Zscaler stock has gained 39% so far this year. The stock has traded in a 52-week range of $153.45-$259.40</p> <p>For updates and corrections, email newsroom[at]stocktwits[dot]com.<</p>

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