Zscaler raises annual results forecast on growing demand

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(Reuters) – Zscaler raised its fiscal 2025 revenue forecast on Wednesday, signaling increasing demand for its cloud-based cybersecurity services.

Shares of the California-based company rose 6% in extended trading.

Enterprises continue to spend on AI-powered comprehensive cybersecurity services to curb rising digital scams and online hacking, ramping up sales for companies such as Zscaler.

Zscaler now expects annual revenue for fiscal 2025 to be between $2.64 billion and $2.65 billion, compared with its prior outlook of $2.62 billion to $2.64 billion.

It also raised its forecast for annual adjusted earnings per share to a range of $3.04 to $3.09, compared with earlier expectations of $2.94 to $2.99 apiece.

“Growing adoption of Zero Trust and AI is driving strong demand for our platform,” said CEO Jay Chaudhry.

The company expects revenue for the third quarter to be between $665 million and $667 million, compared with the median estimate of $667.4 million, according to data compiled by LSEG.

Global enterprises have seen a rise in cybercrimes, data breaches, online scams and high-profile hacks, which have prompted firms to invest more in cybersecurity.

The company posted second-quarter revenue of $647.9 million, above analysts’ average estimate of $635.6 million.

(Reporting by Kritika Lamba in Bengaluru; Editing by Alan Barona)