Zscaler (ZS) was a uncommon vivid spot for the Nasdaq on Thursday, with shares surging virtually 6% a day after the cybersecurity agency reported better-than-expected outcomes and provided a powerful outlook.

The San Jose, Calif.-based firm, which led Nasdaq gainers on a day the tech-heavy index was down greater than 2%, reported fiscal 2025 second-quarter adjusted earnings per share (EPS) of 78 cents on income that jumped 23% year-over-year to $647.9 million. Each measures topped analysts’ estimates compiled by Seen Alpha.

For the third quarter, Zscaler mentioned it expects adjusted EPS of 75 cents to 76 cents on income of $665 million to $667 million. For the complete yr, it sees adjusted EPS of $3.04 to $3.09 on income of $2.64 billion to $2.654 billion. Every determine surpassed consensus projections.

CEO Sees ‘Important Upsell Alternatives’ With Authorities Effectivity Push

Zscaler CEO Jay Chaudhry mentioned on the corporate’s earnings name Wednesday that he believes the agency stands to profit from the Trump administration’s effectivity push.

«Having landed in almost all of the cabinet-level federal businesses and with vital upsell alternatives nonetheless remaining, we’re well-positioned to profit from the federal government’s effectivity measures,» Chaudhry mentioned on the decision, in response to a transcript supplied by AlphaSense.

With right this moment’s advance, Zscaler inventory moved into constructive territory for the previous 12 months. They’re up about 15% because the begin of the yr.