Zscaler Inc. (NASDAQ:ZS) Wednesday announced better-than-expected financial results for its fourth quarter 2025, boosted by strong demand for its new Cloud and AI solutions.
The cloud security provider reported adjusted earnings for the quarter of $0.89 per share, exceeding the $0.80 analyst consensus forecast provided by FactSet.
Its revenue for the period, meanwhile, rose 21% year over year to $719.2 million, also surpassing the analyst estimate of $706.9 million.
Zscaler also provided fiscal 2026 revenue guidance of $3.265 billion to $3.284 billion, which was above Wall Street’s estimate of $3.202 billion, while its earnings for the year ahead is expected to be in the range of $3.64 to $3.68 per share, in line with the consensus forecast.
Zscaler noted its recent acquisition of Red Canary will further accelerate/improve the company's Agentic AI-powered Security Operations Center (SOC) strategy.
Furthermore, Zscaler said its Agentic Operations portfolio is expected to grow to over $400 million in estimated annual recurring revenue by fiscal 2026 year end.
In a note to clients, Wedbush analysts called the quarter and outlook “robust” with the company’s “mojo front and center”.
They added that AI was providing “demand and product development tailwinds”.
Wedbush analysts maintained their ‘Outperform’ rating on the stock with a $330 per share price target.
Zscaler shares edged 0.8% lower to about $272 in late-morning trading on Wednesday.