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Zscaler Inc. (NASDAQ: ZS) is a leading provider of cloud-based cybersecurity solutions, specializing in secure access service edge (SASE) and zero trust architectures. Founded in 2007 and headquartered in San Jose, California, Zscaler's platform, known as the Zero Trust Exchange, enables organizations to securely connect users, devices, and applications over the internet while minimizing the attack surface and eliminating the need for traditional network security appliances.

In its fiscal third quarter of 2025, Zscaler reported strong financial results. Revenue increased by 23% year-over-year to $678 million, surpassing analyst expectations of $666.5 million. Non-GAAP earnings per share were $0.84, exceeding the consensus estimate of $0.76. Calculated billings grew by 25% to $784.5 million, indicating robust demand for the company's services. However, on a GAAP basis, the company reported a net loss of $4.1 million, compared to a net income of $19.1 million in the same quarter of the previous year.

Zscaler's strong performance can be attributed to the increasing adoption of its Zero Trust Exchange platform, which offers comprehensive security services, including secure web gateway, cloud firewall, cloud sandbox, and data loss prevention. The platform's architecture eliminates the need for traditional VPNs by providing direct-to-cloud connectivity, which is particularly beneficial for organizations with distributed workforces. Additionally, Zscaler's integration of artificial intelligence and machine learning enhances threat detection and response capabilities, allowing for real-time analysis and mitigation of security threats.

Zscaler faces several challenges. The cybersecurity industry is highly competitive, with major players like Palo Alto Networks, Microsoft, and emerging startups such as Wiz, which is being acquired by Alphabet. Economic uncertainties and cautious customer spending could also impact the company's growth. Furthermore, the integration of recent acquisitions, such as Red Canary, a provider of managed threat detection and response services, will require effective execution to realize anticipated synergies.

Zscaler's fiscal Q3 2025 results demonstrate its strong position in the cloud-based cybersecurity market, driven by the adoption of its Zero Trust Exchange platform and advanced security services. While the company faces competitive and economic challenges, its focus on innovation and strategic acquisitions positions it well for continued growth in the evolving cybersecurity landscape.