Latest news with #ZeroTrustBranch
Yahoo
26-06-2025
- Business
- Yahoo
Zscaler's Platform Keeps Growing: Is Zero Trust Everywhere the Key?
Zscaler ZS is expanding its Zero Trust Exchange with Zero Trust Everywhere. This strategy highlights Zscaler's ability to take Zero Trust security beyond users to include Zero Trust for Cloud workloads and Zero Trust for the third quarter of fiscal 2025, Zscaler reported more than 210 Zero Trust Everywhere enterprises. This represents a sequential growth of 60%. Moreover, 59% of Zero Trust Branch buyers were new logo customers, showing strong early demand. Zscaler aims to exceed 390 customers by the end of fiscal 2026. To support this growth, Zscaler launched Unified Appliance for Branch in the third quarter. The solution simplifies branch infrastructure and eliminates the need for SD-WAN, Firewall, NAC, and legacy solution is gaining significant traction. During the third quarter, Zscaler revealed a seven-figure annual contract value deal in which an existing financial services customer adopted Cloud workload protection to secure all of their internal workload traffic. Zscaler is also focusing on enhancing Zero Trust Everywhere capabilities with new product launches. At the Zenith Live 2025 event, Zscaler launched Zero Trust Gateway for Cloud Workloads. It is a cloud-native service on Amazon Web Services ('AWS') that secures workload communications in under 10 minutes without deploying agents or virtual machines. It also introduced Zscaler Microsegmentation for Cloud Workloads. This extends Zscaler's Artificial Intelligence (AI) driven segmentation to cloud workloads with its newly introduced host-based microsegmentation service. The solution aims to provide granular host and process-level segmentation policies using Zsacler's AI-powered segmentation engine for workloads in public clouds, such as AWS and Microsoft adoption sustains this pace, Zero Trust Everywhere could become a foundational layer in Zscaler's next phase of platform-led growth. Zscaler appears well-positioned to turn Zero Trust Everywhere into a long-term driver of enterprise growth. Palo Alto Networks PANW and SentinelOne S are also evolving their platforms to meet enterprise security Alto Networks is doubling down on its platformization strategy. In the third quarter of fiscal 2025, PANW closed more than 90 net new platform deals. Moreover, the number of customers platformized on Cortex was up nearly three times, reflecting strong momentum with Palo Alto Networks' Extended Security Intelligence and Automation Management or XSIAM security operation comparatively a small competitor, SentinelOne posted year-over-year growth of 24% in its annual recurring revenues. The growth was fueled by the rising adoption of SentinelOne's AI-first Singularity platform and Purple AI. Shares of Zscaler have surged 73% year to date compared with the Security industry's growth of 22.7%. Image Source: Zacks Investment Research From a valuation standpoint, Zscaler trades at a forward price-to-sales ratio of 15.34X, slightly higher than the industry's average of 14.79X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Zscaler's fiscal 2025 earnings implies a year-over-year decline of 0.31%, while for fiscal 2026 earnings implies year-over-year growth of 12.01%. The earnings estimates for fiscal 2025 and fiscal 2026 have been revised upward in the past 30 days and seven days, respectively. Image Source: Zacks Investment ResearchZscaler currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 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 SentinelOne, Inc. (S) : Free Stock Analysis Report Palo Alto Networks, Inc. (PANW) : Free Stock Analysis Report Zscaler, Inc. (ZS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Channel Post MEA
04-06-2025
- Business
- Channel Post MEA
Zscaler Expands Zero Trust Everywhere Offering
Zscaler has announced a new suite of solutions that enable customers to quickly adopt Zero Trust Everywhere. These innovations extend the reach of true Zero Trust and enable businesses to modernize and scale securely by providing end-to-end segmentation between and inside branches and enhance security across multi-cloud environments. Organizations are increasingly distributed, rapidly adopting IoT, OT, and multi-cloud architectures and grappling with increasing digital complexity. Zscaler has unveiled innovative updates to the Zscaler Zero Trust Exchange platform, empowering businesses to extend Zero Trust Everywhere—across users, applications, devices, clouds, and branch locations. These enhancements make an organization's branches and clouds invisible to bad actors, and eliminate the lateral movement of threats like ransomware within the organization's network. With its expanded capabilities to strengthen Zero Trust Everywhere, Zscaler is advancing its cybersecurity postures, simplifying security network infrastructure, and making it easier for businesses to scale securely in today's rapidly changing threat landscape. The following Zero Trust solutions—highlighted at Zenith Live 2025—are now generally available or accessible for select use cases by Zscaler customers. Unified Appliance for Zero Trust Branch : Zscaler's Zero Trust Branch redefines enterprise security and networking with a unified appliance that secures communications between branches, campuses, and factories, and segments OT and IoT devices within them including legacy OT, with no downtime. The solution also provides newly introduced disposable jumpboxes that enables contractors secure, time-bound access to critical systems. By eliminating the need for firewalls, legacy NAC, cumbersome VLAN configurations and VDI for remote access, organizations can stop lateral threat movement with unparalleled efficacy. This approach not only elevates security, but also dramatically reduces complexity and costs, empowering businesses to modernize and scale faster without compromise. Unified Appliance for Zero Trust Branch is generally available. Zscaler's Zero Trust Branch redefines enterprise security and networking with a unified appliance that secures communications between branches, campuses, and factories, and segments OT and IoT devices within them including legacy OT, with no downtime. The solution also provides newly introduced disposable jumpboxes that enables contractors secure, time-bound access to critical systems. By eliminating the need for firewalls, legacy NAC, cumbersome VLAN configurations and VDI for remote access, organizations can stop lateral threat movement with unparalleled efficacy. This approach not only elevates security, but also dramatically reduces complexity and costs, empowering businesses to modernize and scale faster without compromise. Unified Appliance for Zero Trust Branch is generally available. Zero Trust Gateway for Cloud Workloads: This cloud-native service on AWS enables organizations to secure communications from workload to the internet, and East-West traffic between workloads and VPCs/VNETs, in under 10 minutes without deploying agents or VMs with a Zscaler managed offering. This strengthens security in hybrid and multi-cloud environments, allowing organizations to reduce the attack surface associated with firewalls, and eliminate complexity and secure workload communications. Zero Trust Gateway is generally available. This cloud-native service on AWS enables organizations to secure communications from workload to the internet, and East-West traffic between workloads and VPCs/VNETs, in under 10 minutes without deploying agents or VMs with a Zscaler managed offering. This strengthens security in hybrid and multi-cloud environments, allowing organizations to reduce the attack surface associated with firewalls, and eliminate complexity and secure workload communications. Zero Trust Gateway is generally available. Zscaler Microsegmentation for Cloud Workloads: Zscaler further extends AI-driven segmentation to cloud workloads with newly introduced host-based Microsegmentation service that provides granular host and process level segmentation policies using its AI- powered Segmentation engine for Workloads in public clouds such as AWS and Azure as well as on-premise Data Center based workloads that run on bare metal. Zscaler Workload agent provides process and workload level metrics, traffic flows as well device context, that protects crown jewels against lateral threats and compromise. Zscaler Microsegmentation is generally available. Zscaler further extends AI-driven segmentation to cloud workloads with newly introduced host-based Microsegmentation service that provides granular host and process level segmentation policies using its AI- powered Segmentation engine for Workloads in public clouds such as AWS and Azure as well as on-premise Data Center based workloads that run on bare metal. Zscaler Workload agent provides process and workload level metrics, traffic flows as well device context, that protects crown jewels against lateral threats and compromise. Zscaler Microsegmentation is generally available. Zero Trust Exchange for B2B: The introduction of B2B Exchange revolutionizes secure collaboration by providing a cutting-edge app-sharing platform for partner organizations, eliminating the need for outdated technologies like MPLS circuits or VPNs that come with complexity and the risk of oversharing. This solution accelerates seamless, secure connections between enterprises, empowering organizations to drive faster, more efficient mergers, acquisitions, and partnerships while safeguarding sensitive data. Zero Trust Exchange for B2B is available for select use cases, with extended capabilities coming soon. 'Zscaler's latest innovations for the Zero Trust Exchange truly extends Zero Trust Everywhere beyond users and redefines the enterprise security and networking by seamlessly unifying operations, strengthening threat defenses, and enabling secure connectivity across users, devices, applications, branches, and clouds with better visibility and experience—no matter how complex or distributed the environment,' said Dhawal Sharma, EVP Product Strategy, Zscaler. 'With this expanded Zero Trust Everywhere approach, organizations can accelerate security modernization, mitigate risks, and protect data everywhere business happens.' 0 0
Yahoo
06-03-2025
- Business
- Yahoo
Zscaler Inc (ZS) Q2 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic Advancements
Revenue: $648 million, up 23% year over year and 3% sequentially. Annual Recurring Revenue (ARR): Over $2.7 billion, a 23% year-over-year growth. Net Retention Rate (NRR): Improved to 115%. Operating Profit Growth: 36% growth, with operating margin improving by 2 percentage points to nearly 22%. Free Cash Flow Margin: Record 22% for Q2. Gross Margin: 80.4%, compared to 80.8% in the year-ago quarter. Operating Expenses: Increased 19% year over year to $380 million. Cash and Investments: Approximately $2.9 billion in cash, cash equivalents, and short-term investments. Guidance for Q3 Revenue: Expected to be in the range of $665 million to $667 million, reflecting 20% to 21% year-over-year growth. Full Year Revenue Guidance: Expected to be in the range of $2.64 billion to $2.654 billion, reflecting approximately 22% year-over-year growth. Full Year Free Cash Flow Margin Guidance: Expected to be approximately 24.5% to 25%. Warning! GuruFocus has detected 3 Warning Sign with ZS. Release Date: March 05, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Zscaler Inc (NASDAQ:ZS) reported a 23% year-over-year revenue growth, surpassing guidance expectations. The company's annual recurring revenue (ARR) grew by 23% year over year, reaching over $2.7 billion. Operating profit increased by 36%, with operating margin improving by 2 percentage points to nearly 22%. Zscaler Inc (NASDAQ:ZS) achieved a record free cash flow margin of 22% for Q2. The company is seeing strong customer interest in its Zero Trust Branch solution, with 57% of purchases coming from new logo customers. Despite strong performance, there is ongoing scrutiny on large deals, reflecting tighter macroeconomic conditions. Gross margin slightly decreased to 80.4% compared to 80.8% in the previous year. The company noted that increased success in selling bigger bundles could reduce the dollar-based net retention rate in the future. There is a potential impact on sales productivity due to the complexity of closing large deals. Zscaler Inc (NASDAQ:ZS) faces competition from legacy security vendors, which could impact its market positioning. Q: How much of Zscaler's business is coming from CIA and secure web gateway replacements versus broader platform products? A: Jay Chaudhry, CEO, explained that ZIA was the starting point, often replacing blue code and other web gateways. However, the platform now commonly includes ZIA, ZPA, and ZDX. Recently, Zero Trust Branch has become an important starting point, with 57% of customers who bought it being new logos. Q: What proves that the go-to-market changes are making a difference and are durable? A: Ashwin Kesireddy, VP of Investor Relations, noted the strength of the pipeline, double-digit growth in new ACV, and increased C-level engagements in large enterprises as indicators of successful go-to-market changes. Q: Can you discuss the traction with customers opting out of legacy systems for Zero Trust Everywhere? A: Jay Chaudhry highlighted that customers are eager to embrace Zero Trust Branch, which simplifies branch security by eliminating firewalls and routers. A survey showed 96% of CXOs are ready to adopt this approach, indicating strong traction. Q: How is Zscaler addressing the scrutiny on large deals and macroeconomic challenges? A: Remo Canessa, CFO, stated that while macro conditions are tight, the demand for cybersecurity remains strong. Zscaler's ability to offer cost savings alongside Zero Trust cybersecurity is driving pipeline growth, with GSIs playing a crucial role in deal closures. Q: How does AI change Zscaler's competitive positioning and product offerings? A: Jay Chaudhry explained that AI is integrated into existing products and new offerings. Zscaler leverages its vast data to enhance AI-driven solutions like unified vulnerability management and data protection, positioning itself strongly in the evolving AI landscape. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
