The earnings call reflected strong growth and performance in key metrics such as TCV bookings, ARR, and customer adoption of Zscaler's platform. The success of new programs like Z Flex and innovations in AI and data security further contributed to positive momentum. However, macroeconomic challenges and a slight decline in gross margin were noted as concerns. Overall, the highlights significantly outweighed the lowlights, indicating a positive sentiment.

Company Guidance

In the third quarter of fiscal year 2025, Zscaler reported strong financial performance, surpassing guidance in both growth and profitability metrics. Total contract value (TCV) bookings exceeded $1 billion, and remaining performance obligations (RPO) approached $5 billion, indicating robust demand for its solutions. The company achieved an annual recurring revenue (ARR) of approximately $2.9 billion, maintaining a 23% year-over-year growth rate, with aspirations to exceed $3 billion in ARR by the end of the quarter. Zscaler's free cash flow margin was reported at 28%, contributing to a "rule of 52" performance, which outstrips the industry benchmark of the "rule of 40." Additionally, the firm experienced significant growth in new logo annual contract value (ACV), which increased by over 40% year-over-year. New ACV also grew by double digits year-over-year. The company announced the introduction of the Z Flex purchasing program, which accounted for over $65 million in TCV bookings in its initial quarter. Zscaler was recognized by Gartner as a leader in the Magic Quadrant for user security for over a decade, further establishing its market leadership. Despite a challenging macroeconomic environment, Zscaler's strategic initiatives, including the Zero Trust Everywhere and Data Security Everywhere programs, contributed to its continued growth and market expansion.

Record TCV Bookings

Achieved best Q3 with TCV bookings of over $1 billion and remaining performance obligations nearly $5 billion.

Strong ARR Growth

Annual recurring revenue (ARR) was approximately $2.9 billion, with a consistent 23% year-over-year growth.

Platform Milestone

Zscaler platform now secures over 50 million users, processing over 100 trillion transactions and blocking over 60 billion threats last year.

Z Flex Program Success

The Z Flex program contributed over $65 million in TCV bookings, with notable commitments from Fortune 500 companies.

Growth in Emerging Product Categories

Emerging product categories such as Zero Trust Everywhere, Data Security Everywhere, and Agentic Operations are growing significantly faster than overall ARR.

Positive Financial Performance

Q3 revenue of $678 million, up 23% year-over-year, and operating margin of approximately 22%.

AI and Data Security Innovations

Innovations in AI-powered security solutions and data security modules are driving customer adoption and growth.

Strategic Acquisition

Acquisition of Red Canary to enhance capabilities in managed detection and response (MDR) and threat intelligence.

Zscaler (ZS) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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ZS Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Sep 02, 2025	2025 (Q4)	0.80 / -	0.88	―	―	―
May 30, 2025	2025 (Q3)	0.75 / 0.84	0.88	-4.55% (-0.04)
Mar 05, 2025	2025 (Q2)	0.69 / 0.78	0.76	2.63% (+0.02)
Dec 02, 2024	2025 (Q1)	0.63 / 0.77	0.67	14.93% (+0.10)
Sep 03, 2024	2024 (Q4)	0.70 / 0.88	0.64	37.50% (+0.24)
May 30, 2024	2024 (Q3)	0.66 / 0.88	0.48	83.33% (+0.40)
Feb 29, 2024	2024 (Q2)	0.58 / 0.76	0.37	105.41% (+0.39)
Nov 27, 2023	2024 (Q1)	0.49 / 0.67	0.29	131.03% (+0.38)
Sep 05, 2023	2023 (Q4)	0.49 / 0.64	0.25	156.00% (+0.39)
Jun 01, 2023	2023 (Q3)	0.42 / 0.48	0.17	182.35% (+0.31)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

ZS Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
May 30, 2025	$275.70	$293.18	+6.34%
Mar 05, 2025	$196.45	$202.16	+2.91%
Dec 02, 2024	$208.51	$198.64	-4.73%
Sep 03, 2024	$193.19	$157.13	-18.67%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.