Shares of cybersecurity firm Zscaler Inc. (NASDAQ: ZS) surged 5.42% in the after-hours trading session on Wednesday after the company reported better-than-expected fiscal second-quarter results and raised its full-year guidance.
For the quarter ended January 31, Zscaler posted an adjusted EPS of $0.78, beating the consensus estimate of $0.69. Revenue climbed 23% year-over-year to $647.9 million, surpassing analysts' expectations of $635.35 million. Billings grew 18% to $742.7 million, also exceeding forecasts.
Zscaler's robust performance was driven by growing demand for its cloud-based cybersecurity services. As highlighted in the earnings release, the company is benefiting from the accelerated adoption of its Zero Trust and AI-powered security solutions. The strong results prompted Zscaler to raise its fiscal 2025 revenue guidance to a range of $2.64 billion to $2.654 billion, up from the previous outlook of $2.62 billion to $2.64 billion.
Analysts were bullish on Zscaler's prospects following the upbeat quarterly report. Barclays reiterated an Overweight rating and raised the price target to $250, citing the company's impressive execution and favorable industry tailwinds. Mizuho echoed a similar sentiment, maintaining a Neutral rating but increasing the price target to $225.
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