Zscaler beats quarterly estimates and raises guidance

Zscaler shares rose after the cloud security company reported strongerthanexpected fiscal fourthquarter results and issued guidance above Wall Street forecasts. The company said rising demand for cybersecurity tools, including products tied to artificial intelligence risks, supported its performance. For the quarter, adjusted earnings were $1.19 per share versus an expected $1.09, and revenue reached $898 million compared with an estimate of $877 million. Revenue increased 25% from a year earlier, while the company reported a smaller net loss than in the same period last year. Chief Executive Jay Chaudhry said Zscaler is seeing early traction for its Zero Trust security offerings for AI agents. The company also said annual recurring revenue rose 25% to $3.77 billion. For the fiscal first quarter and full year, Zscaler projected revenue and adjusted earnings above analyst estimates.