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Zscaler (ZS) Q3 Earnings: How Key Metrics Compare to Wall Street Estimates

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Zscaler (ZS - Free Report) reported $678.03 million in revenue for the quarter ended April 2025, representing a year-over-year increase of 22.6%. EPS of $0.84 for the same period compares to $0.88 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $666.39 million, representing a surprise of +1.75%. The company delivered an EPS surprise of +12.00%, with the consensus EPS estimate being $0.75.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Zscaler performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Billings: $784.51 million versus the 10-analyst average estimate of $792.21 million.
  • Remaining Performance Obligations: $4.98 billion compared to the $4.73 billion average estimate based on three analysts.
  • Dollar-Based Net Retention Rate: 114% versus the two-analyst average estimate of 115%.
  • Revenues- Direct Customers: $80.14 million versus $76.85 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +57.6% change.
  • Revenues- Channel Partners: $597.89 million versus $589.01 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +19% change.
View all Key Company Metrics for Zscaler here>>>

Shares of Zscaler have returned +12.2% over the past month versus the Zacks S&P 500 composite's +6.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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