Zscaler Inc. reported its fiscal third-quarter 2025 earnings, surpassing analyst expectations with revenue of $678 million, a 23% increase year-over-year, compared to estimates of $666.4 million. Adjusted earnings per share (EPS) came in at $0.84, exceeding the $0.75 consensus and representing an 18% year-over-year rise. The company’s calculated billings rose 25% to $784.5 million, while deferred revenue increased 26% to approximately $2 billion. Despite a GAAP net loss of $4.1 million, Zscaler posted an adjusted net income of $136.8 million, outperforming the estimated $123.9 million. Operating cash flow grew 22% to $211.1 million, and free cash flow stood at $119 million with an 18% margin. Zscaler’s annual recurring revenue (ARR) reached about $2.9 billion, up 23% year-over-year, and remaining performance obligations (RPO) increased 30%. The company’s customer base expanded, with customers generating over $100,000 in annual recurring revenue (ARR) up 15% to 3,363, and those with $1 million+ ARR rising 23% to 642. Zscaler continues to invest in artificial intelligence security, including the acquisition of Red Canary, and is expanding its Zero Trust Exchange platform. For the fourth quarter, the company projects revenue between $705 million and $707 million and adjusted EPS of $0.79 to $0.80, slightly below some estimates. Zscaler also raised its full-year 2025 EPS outlook to a range of $3.18 to $3.19 and increased its revenue guidance to between $2.659 billion and $2.661 billion, up from prior projections. The company’s strong quarterly performance has led to positive analyst reactions, with firms like UBS and KeyBanc highlighting Zscaler’s growth, profitability, and resilience amid a challenging cybersecurity market.