Zscaler Stock Jumps 10% Following Strong AI-Driven Financials

Published 22 hours agoZS

Zscaler Stock Jumps 10% Following Strong AI-Driven Financials

Zscaler's stock saw a notable 10% rise after the company reported robust financial results, significantly influenced by its advancements in artificial intelligence. The introduction of AI-based analytics solutions like Risk360 and Unified Vulnerability Management fueled nearly three percentage points of growth in new and upsell business for the last quarter of fiscal year 2024.

The company showed impressive financial performance, with a 23% year-over-year revenue increase, reaching $647.9 million in the second quarter of fiscal year 2025. Additionally, adjusted earnings per share saw a 24% rise, bringing it to $0.78. These figures were highlighted in a report by Nasdaq, showcasing Zscaler's upward trend driven by strategic investments in AI and data.

Zscaler is enhancing its AI infrastructure with significant investments, including nearly $50 million in property and equipment during Q4, accounting for 7% of its fiscal year 2024 revenue. Despite expectations of a 6% deceleration in revenue growth for fiscal year 2025, the company remains optimistic about AI Analytics and other innovations continuing to boost sales productivity beyond forecasts. These efforts underscore Zscaler's commitment to leveraging AI to propel future business growth.

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