Zscaler (ZS) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates

Zscaler (ZS) reported $788.11 million in revenue for the quarter ended October 2025, representing a year-over-year increase of 25.5%. EPS of $0.96 for the same period compares to $0.77 a year ago.The reported revenue represents a surprise of +1.91% over the Zacks Consensus Estimate of $773.35 million. With the consensus EPS estimate being $0.85, the EPS surprise was +12.94%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.Here is how Zscaler performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:Remaining Performance Obligations: $5.93 billion compared to the $5.65 billion average estimate based on three analysts.Dollar-Based Net Retention Rate: 115% compared to the 114.1% average estimate based on three analysts.Revenues- Direct Customers: $122.1 million compared to the $92.97 million average estimate based on two analysts. The reported number represents a change of +75.5% year over year.Revenues- Channel Partners: $666.01 million versus the two-analyst average estimate of $680.24 million. The reported number represents a year-over-year change of +19.3%.View all Key Company Metrics for Zscaler here>>>Shares of Zscaler have returned -14.1% over the past month versus the Zacks S&P 500 composite's -1.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>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