Zscaler Q1 Results: Revenue Beat, EPS Beat, New AI Opportunities, Stock Drop – Zscaler (NASDAQ:ZS)

Zscaler Inc ZS announced its first quarter financial results on Monday after the market closed. Here is a summary of the report.

Result Q1: Zscaler reported first-quarter revenue of $628 million, beating the consensus estimate of $606.19 million. According to Benzinga Pro, the cybersecurity company reported adjusted profit of 77 cents per share, beating analyst estimates of 63 cents per share.

Total revenue increased 26% year-over-year. Deferred revenue increased 27% year-over-year to $1,783.7 billion. Billings increased 13% year-over-year to $516.7 million.

Cash flow from operations totaled $331.3 million for the quarter. The company generated free cash flow of $291.9 million in the first quarter, up from $224.7 million in the year-ago quarter. Zscaler ended the quarter with approximately $2.71 billion in cash, equivalents and short-term investments.

“Increasing customer engagement and strong sales execution delivered a solid first quarter with all metrics exceeding our forecast. “The combination of Zero Trust and AI creates exciting new opportunities that we can leverage with our large and expanding platform,” he said Jay ChaudhryChairman and CEO of Zscaler.

“With our customer focus, the world’s largest cybersecurity cloud and an improved go-to-market engine, we are driving strong growth.”

Related Link: Cybersecurity Stocks Powered by Generative AI Cloudflare and Okta Have Near-Term Upside: Analyst

Directions: Zscaler expects fiscal second quarter revenue to be between $633 million and $635 million, compared to estimates of $633.84 million. The company expects second-quarter adjusted earnings of 68 cents to 69 cents per share, versus estimates of 69 cents per share.

Zscaler expects full-year 2025 revenue of approximately $2.623 billion to $2.643 billion. The company expects full-year adjusted earnings of $2.94 to $2.99 ​​per share.

Management will further discuss the quarter on a conference call with analysts and investors at 4:30 p.m. ET.

ZS price promotion: According to Benzinga Pro, Zscaler shares fell 7.17% in after-hours trading to trade at $193.80 at the time of publication on Monday.

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