Why Zscaler Stock Is Surging Today

The stock of Zscaler (NASDAQ: ZS) is seeing strong gains Thursday following the company's recent earnings report. Its share price was up 7% as of 12:45 p.m. ET today.

After yesterday's market close, Zscaler published results for the second quarter of its 2025 fiscal year, which ended Jan. 31. The company reported sales and earnings performance that beat the market's expectations, and earnings guidance also came in better than Wall Street anticipated.

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Zscaler stock pops after topping Q2 expectations

Zscaler reported adjusted earnings per share (EPS) of $0.78 on sales of $647.9 million in the quarter. The performance topped the average analyst estimates, which call for adjusted EPS of $0.69 on sales of $635.45 million.

The cybersecurity specialist's sales were up 23.4% year over year, and deferred revenue at the end of the period stood at roughly $1.88 billion, up 25% compared to last year's quarter. Adjusted EPS was up 23.8% year over year.

The outlook beat Wall Street's forecast

For the fiscal third quarter, Zscaler is targeting sales between $665 million and $667 million, which falls short of the average Wall Street analyst estimate of $667.25 million. On the other hand, management's guidance for adjusted EPS between $0.75 and $0.76 beat the Street forecast for $0.74.

Meanwhile, the company's full-year guidance range for sales between $2.64 billion and $2.654 billion came in better than the consensus forecast for sales of $2.64 billion. The earnings outlook offered an even better surprise, with guidance for EPS between $3.04 and $3.09, beating Wall Street's call for $2.99.

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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Zscaler. The Motley Fool has a disclosure policy.