Zscaler Q4 results beat estimates on strong platform adoption
Zscaler Q4 results beat estimates on strong platform adoption
Overview
U.S. cloud security firm's fiscal Q4 revenue rose 25%, beating analyst expectations
Adjusted EPS for fiscal Q4 beat analyst expectations
Company cites platform adoption and large-deal activity as drivers of growth
Outlook
Zscaler expects Q1 fiscal 2027 revenue of $935 mln to $939 mln, up about 19% year over year
Company sees full-year fiscal 2027 revenue of $3.908 bln to $3.938 bln, up 16.6% to 17.5%
Zscaler forecasts full-year 2027 ARR of $4.396 bln to $4.426 bln, up 16.6% to 17.4%
Result Drivers
PLATFORM ADOPTION - Co said increased adoption of its platform, including Zero Trust SASE, Agentic SecOps, Data Security, and Security for AI, drove Q4 growth
NON-SEAT-BASED SOLUTIONS - CFO said strong contribution from non-seat-based solutions supported revenue growth
LARGE-DEAL ACTIVITY - CFO said record large-deal activity contributed to Q4 performance
Company press release: ID:nGNX9KfjQm
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Beat | $898.19 mln | $877.39 mln (39 Analysts) |
Q4 Adjusted EPS | Beat | $1.19 | $1.09 (42 Analysts) |
Q4 Loss Per Share |
| $0.02 |
|
Q4 Adjusted Net Income | Beat | $198.20 mln | $183.34 mln (38 Analysts) |
Q4 Net Loss |
| $3.37 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 38 "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 $200.00, about 15.8% above its September 2 closing price of $172.73
The stock recently traded at 38 times the next 12-month earnings vs. a P/E of 31 three months ago
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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.)