Unlocking Zscaler (ZS) International Revenues: Trends, Surprises, and Prospects

Have you assessed how the international operations of Zscaler (ZS) performed in the quarter ended July 2025? For this cloud-based information security provider, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.Our review of ZS' last quarterly performance uncovered some notable trends in the revenue contributions from its international markets, which are commonly analyzed and tracked by Wall Street experts.The company's total revenue for the quarter amounted to $719.23 million, marking an increase of 21.3% from the year-ago quarter. We will next turn our attention to dissecting ZS' international revenue to get a clearer picture of how significant its operations are outside its main base.A Closer Look at ZS' Revenue Streams AbroadOther International accounted for 3.6% of the company's total revenue during the quarter, translating to $25.52 million. Revenues from this region represented a surprise of -0.25%, with Wall Street analysts collectively expecting $25.58 million. When compared to the preceding quarter and the same quarter in the previous year, Other International contributed $24.67 million (3.6%) and $20.8 million (3.5%) to the total revenue, respectively.Asia Pacific generated $114.26 million in revenues for the company in the last quarter, constituting 15.9% of the total. This represented a surprise of +3.38% compared to the $110.53 million projected by Wall Street analysts. Comparatively, in the previous quarter, Asia Pacific accounted for $107.35 million (15.8%), and in the year-ago quarter, it contributed $89.9 million (15.2%) to the total revenue.During the quarter, Europe, Middle East and Africa contributed $210.82 million in revenue, making up 29.3% of the total revenue. When compared to the consensus estimate of $211.17 million, this meant a surprise of -0.17%. Looking back, Europe, Middle East and Africa contributed $203.02 million, or 29.9%, in the previous quarter, and $180.34 million, or 30.4%, in the same quarter of the previous year.International Market Revenue ProjectionsWall Street analysts expect Zscaler to report $773.36 million in total revenue for the current fiscal quarter, indicating an increase of 23.2% from the year-ago quarter. Other International, Asia Pacific and Europe, Middle East and Africa are expected to contribute 3.5% (translating to $27.15 million), 15.2% ($117.27 million), and 28.6% ($221.36 million) to the total revenue, respectively.For the entire year, the company's total revenue is forecasted to be $3.27 billion, which is an improvement of 22.3% from the previous year. The revenue contributions from different regions are expected as follows: Other International will contribute 3.5% ($115.21 million), Asia Pacific 15.3% ($498.41 million) and Europe, Middle East and Africa 28.9% ($943.31 million) to the total revenue.In ConclusionRelying on global markets for revenues presents both prospects and challenges for Zscaler. Therefore, scrutinizing its international revenue trends is key to effectively forecasting the company's future outlook.In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these forecasts.Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.Zscaler, bearing a Zacks Rank #3 (Hold), is expected to mirror the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .A Look at Zscaler's Recent Stock Price PerformanceThe stock has increased by 5.8% over the past month compared to the 3.4% increase of the Zacks S&P 500 composite. Meanwhile, the Zacks Computer and Technology sector, which includes Zscaler,has increased 5.4% during this time frame. Over the past three months, the company's shares have experienced a loss of 6.1% relative to the S&P 500's 9.7% increase. Throughout this period, the sector overall has witnessed a 16.6% increase.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Zscaler, Inc. (ZS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks