Zscaler (ZS.O) raised its revenue forecast for fiscal 2025 on Wednesday, reflecting growing demand for its cloud-based cybersecurity solutions. Shares of the California-based company surged 6% in after-hours trading.
Enterprises are increasingly investing in AI-powered cybersecurity services to combat the rise in digital scams and online hacking, driving sales for companies like Zscaler. As a result, the company now expects annual revenue for fiscal 2025 to fall between $2.64 billion and $2.65 billion, up from its previous forecast of $2.62 billion to $2.64 billion.
Zscaler also raised its adjusted earnings per share forecast to a range of $3.04 to $3.09, up from the previous expectation of $2.94 to $2.99 per share.
“Growing adoption of Zero Trust and AI is driving strong demand for our platform,” said Zscaler CEO Jay Chaudhry, highlighting the increasing reliance on their services for secure cloud access.
The company projected third-quarter revenue between $665 million and $667 million, slightly below the median analyst estimate of $667.4 million.
In the face of rising cybercrimes, data breaches, online scams, and high-profile hacks, businesses are ramping up their investment in cybersecurity. Zscaler posted second-quarter revenue of $647.9 million, exceeding analysts’ forecast of $635.6 million.
