Cybersecurity firm Zscaler Q1 revenue beats estimates on strong AI Security platform demand

Zscaler

25/11/2025 21:14

Overview

Zscaler fiscal Q1 2026 revenue grows 26% yr/yr, beating analyst expectations

Adjusted EPS for fiscal Q1 2026 beats consensus, reflecting strong operational performance

Company announced acquisitions to enhance AI security offerings

Outlook

Company expects Q2 revenue between $797 mln and $799 mln

Zscaler projects full-year revenue of $3.282 bln to $3.301 bln

Company anticipates full-year ARR of $3.698 bln to $3.718 bln

Result Drivers

ZERO TRUST AND AI SECURITY - Strong demand for Zero Trust and AI Security platform drove Q1 results, per CEO Jay Chaudhry

SPLX TECHNOLOGY INTEGRATION - Integration of SPLX technology expected to expand AI Security solutions

RECURRING REVENUE GROWTH - ARR grew 26% yr/yr, indicating increased reliance on Zscaler's security solutions

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$788.11 mln
$773.75 mln (38 Analysts)
Q1 Adjusted EPS
Beat
$0.96
$0.86 (40 Analysts)
Q1 EPS
-$0.07
Q1 Adjusted Net Income
Beat
$159.50 mln
$143.82 mln (36 Analysts)
Q1 Net Income
-$11.62 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 37 "strong buy" or "buy", 11 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Zscaler Inc is $340.00, about 17.5% above its November 24 closing price of $280.35

The stock recently traded at 72 times the next 12-month earnings vs. a P/E of 78 three months ago

Press Release: ID:nGNX8pCpqq

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)