Zscaler Inc (NASDAQ:ZS) stock fell 2.05% (As on September 3, 11:15:57 AM UTC-4, Source: Google Finance) after the company impressed with revenue and earnings beats in its 2025 fiscal fourth quarter. Zscaler delivered cash flow from operations of $250.6 million, up from $203.6 million a year ago. As of the end of July, Zscaler had deferred revenue of $2.448 billion, up 30% year-over-year and the company had $3.5732 billion in cash, cash equivalents and short-term investments on hand. On the other hand, Zscaler has previously disclosed a data breach stemming from the same Salesloft Drift supply chain attack
Meanwhile, Zscaler had agreed to enter a definitive agreement to acquire managed detection and response firm Red Canary Inc. for an undisclosed sum. The acquisition, which was completed by Aug. 1, brings together Zscaler’s zero-trust platform with Red Canary’s domain expertise in threat detection and response, spanning endpoints, identity, network and cloud workloads. The combination of the technology from the two companies addresses the operator pain points that often lead to missed signals, incomplete threat analysis and increased vulnerability to undetected threats.
Further, in June, Zscaler announced a series of product updates designed to help enterprises extend zero-trust security across their distributed environments. The updates included new offerings for securing remote and cloud-native infrastructures, as well as artificial intelligence-powered tools for data classification, threat detection and segmentation.
ZS in the fourth quarter of FY 25 has reported the adjusted earnings per share of 89 cents, beating the analysts’ estimates for the adjusted earnings per share of 81 cents. The company had reported the adjusted revenue growth of 21 percent to $719.2 million in the fourth quarter of FY 25, beating the analysts’ estimates for revenue of $707.9 million.

For its fiscal 2026 first quarter, Zscaler expects adjusted earnings per share of 85 to 86 cents on revenue of $772 million to $774 million. The earnings outlook at the midpoint was ahead of the 85 cents per share expected by analysts, while the revenue outlook was healthily ahead of an expected $752 million.
For its full fiscal year 2026, the company expected adjusted earnings per share of $3.64 to $3.68 on revenue of $3.265 billion to $3.284 billion.