What's Going On With Zscaler Stock Tuesday?

Shares of cloud-native cybersecurity company Zscaler Inc ZS are trading lower Tuesday on the heels of the company’s first-quarter financial results. Here’s a look at everything you need to know.

• Q1 Revenue: $628 million, versus estimates of $606.19 million

• Q1 EPS: 77 cents, versus estimates of 63 cents

Revenue grew 26% on a year-over-year basis, deferred revenue increased 27% year-over-year to $1.783.7 billion and calculated billings grew 13% year-over-year to $516.7 million.

Zscaler generated $291.9 million of free cash flow in the first quarter, up from $224.7 million in the prior year's quarter. The cybersecurity company ended the quarter with approximately $2.71 billion in cash, equivalents and short-term investments.

“The combination of Zero Trust and AI is creating exciting new opportunities, which we are well positioned to capture with our large and expanding platform,” said Jay Chaudhry, chairman and CEO of Zscaler.

Zscaler expects fiscal second-quarter revenue to be in the range of $633 million to $635 million versus estimates of $633.84 million. The company anticipates second-quarter adjusted earnings of 68 cents to 69 cents per share versus estimates of 69 cents per share.

Zscaler expects full-year 2025 revenue of approximately $2.623 billion to $2.643 billion versus estimates of $2.614 billion. The company anticipates full-year adjusted earnings of $2.94 to $2.99 per share versus estimates of $2.90 per share.

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Analyst Changes: Following the print, multiple analysts adjusted price targets.

• Canaccord Genuity analyst Kingsley Crane maintained a Buy and raised the price target from $220 to $230.

• Deutsche Bank analyst Patrick Colville maintained a Buy and raised the price target from $200 to $225.

• Morgan Stanley analyst Hamza Fodderwala maintained an Equal-Weight and lowered the price target from $215 to $205.

• Rosenblatt analyst Catharine Trebnick maintained a Neutral and price target of $190.

• Piper Sandler analyst Rob Owens maintained an Overweight and raised the price target from $215 to $235.

ZS Price Action: Zscaler shares were down 6.29% at $195.40 at the time of writing Tuesday, per Benzinga Pro.

Photo: Shutterstock.