Thu May 29 20:20:00 UTC 2025: **Zscaler to Announce Earnings Tomorrow; Analysts Anticipate Continued Growth**

**[City, State] –** Cloud security platform provider Zscaler (NASDAQ:ZS) is set to release its earnings report tomorrow, following the market close. Investors are keen to see if the company can maintain its momentum in the competitive cybersecurity landscape.

Last quarter, Zscaler exceeded analysts’ expectations by 2.1%, reporting revenues of $647.9 million, a 23.4% increase year-over-year. This performance was driven by strong growth in annual recurring revenue (ARR) and above-anticipated EBITDA.

For this quarter, analysts are projecting a 20.6% year-over-year revenue increase, reaching $667 million. This represents a slowdown compared to the 32.1% growth reported in the same quarter last year. Adjusted earnings per share (EPS) are projected to be $0.76.

Notably, analyst estimates have remained relatively stable over the past month, suggesting confidence in Zscaler’s continued performance. However, the company has missed revenue estimates twice in the last two years, leaving room for potential volatility.

Peers in the cybersecurity sector have recently released their Q1 results. Palo Alto Networks reported a 15.3% year-over-year revenue increase, exceeding expectations by 0.5%, while Qualys saw a 9.7% revenue jump, surpassing estimates by 1.8%. The market reacted differently to these reports, with Palo Alto Networks experiencing a 6.9% stock decline following the release, while Qualys’ stock price remained stable.

Despite mixed reactions to peer earnings, investor sentiment towards cybersecurity companies has generally been positive, with share prices rising an average of 8.5% in the last month. Zscaler has outpaced this trend, climbing 14.5% during the same period.

As Zscaler heads into earnings, the average analyst price target sits at $245.50, slightly below the current share price of $256.20.

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