Latest news with #ZeroTrustExchange
Associated Press
2 days ago
- Business
- Associated Press
CyberRatings.org Announces Test Results for Zscaler Zero Trust Exchange
Achieves 100% Overall Security Effectiveness for Security Service Edge (SSE) Threat Protection and 100% Effectiveness for Zero Trust Network Access (ZTNA). AUSTIN, Texas, June 2, 2025 /PRNewswire/ -- (CyberRatings), the non-profit organization dedicated to providing insight into the capabilities of cybersecurity products and services through independent testing, has released additional results from its Security Service Edge (SSE) and Zero Trust Network Access (ZTNA) testing. This latest test focused on another leading product: Zscaler Zero Trust Exchange (ZTE). Zscaler achieved a Security Effectiveness score of 100%, successfully blocking 100% of exploits, malware and evasions in the SSE test. The test report provides details on product performance across multiple threat categories, with scoring weighted by attack severity. The SSE evaluation covered: The ZTNA results confirmed that Zscaler demonstrated strong capabilities by effectively enforcing policies and managing access according to predefined rules, policies, and user roles, achieving 100% in all categories tested. The ZTNA test covered: Of the SSE test criteria, meeting the threshold of blocking evasions had the most impact on scores. Evasion techniques are used by attackers to disguise or obfuscate attacks so that they bypass detection. SSE products must not be tricked by evasions—failure exposes organizations to entire classes of undetected threats. Zscaler scored 100% in blocking all 1,154 evasion attempts. Security Service Edge is a complex multi-layered security technology built on top of complex, ever-changing cloud technologies. Customers have minimal visibility into their operation and architecture, and testing is challenging. This double-layered opacity limits an organization's ability to diagnose performance issues, fine-tune policy enforcement, or validate security outcomes. 'The only way to know if an SSE offering works properly is to test it,' said Vikram Phatak, CEO of 'Our test determined that Zscaler provides exceptional security effectiveness and strong coverage across a wide variety of threat categories.' CyberRatings is on track to test several other SSE vendors for Threat Protection along with a Comparative Report to be published this summer. In addition to in-house testing technologies, CyberRatings used Keysight's CyPerf tool to test performance and TLS/SSL functionality as well as TeraPackets Threat Replayer tool for exploit packet capture replay. The in-depth test reports are available at Additional Resources: SSE Threat Protection Methodology v2.1 Zero Trust Network Access Methodology v2.0 About is a 501(c)6 non-profit organization dedicated to providing insight into the capabilities of cybersecurity products and services through independent testing programs. We provide enterprises with independent, objective ratings of security product efficacy to make informed decisions. To become a member, visit and follow us on LinkedIn. View original content to download multimedia: SOURCE
Yahoo
5 days ago
- Business
- Yahoo
Zscaler (NASDAQ:ZS) Exceeds Q1 Expectations
Cloud security platform Zscaler (NASDAQ:ZS) reported Q1 CY2025 results exceeding the market's revenue expectations , with sales up 22.6% year on year to $678 million. The company expects next quarter's revenue to be around $706 million, close to analysts' estimates. Its non-GAAP profit of $0.84 per share was 10.8% above analysts' consensus estimates. Is now the time to buy Zscaler? Find out in our full research report. Revenue: $678 million vs analyst estimates of $667 million (22.6% year-on-year growth, 1.6% beat) Adjusted EPS: $0.84 vs analyst estimates of $0.76 (10.8% beat) Adjusted Operating Income: $146.7 million vs analyst estimates of $141.8 million (21.6% margin, 3.4% beat) Revenue Guidance for Q2 CY2025 is $706 million at the midpoint, roughly in line with what analysts were expecting Adjusted EPS guidance for the full year is $3.19 at the midpoint, beating analyst estimates by 3.3% Operating Margin: -3.7%, down from -0.5% in the same quarter last year Free Cash Flow Margin: 17.6%, down from 22.1% in the previous quarter Billings: $784.5 million at quarter end, up 24.9% year on year Market Capitalization: $39.25 billion 'We delivered outstanding Q3 results as an increasing number of customers adopt our expanding Zero Trust Exchange platform. We enable customers to realize Zero Trust Everywhere while lowering operational cost and complexity,' said Jay Chaudhry, Chairman and CEO of Zscaler. After successfully selling all four of his previous cybersecurity companies, Jay Chaudhry's fifth venture, Zscaler (NASDAQ:ZS) offers software-as-a-service that helps companies securely connect to applications and networks in the cloud. A company's long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last three years, Zscaler grew its sales at an exceptional 38% compounded annual growth rate. Its growth surpassed the average software company and shows its offerings resonate with customers, a great starting point for our analysis. This quarter, Zscaler reported robust year-on-year revenue growth of 22.6%, and its $678 million of revenue topped Wall Street estimates by 1.6%. Company management is currently guiding for a 19.1% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 19.3% over the next 12 months, a deceleration versus the last three years. Still, this projection is healthy and indicates the market sees success for its products and services. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Billings is a non-GAAP metric that is often called 'cash revenue' because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract. Zscaler's billings punched in at $784.5 million in Q1, and over the last four quarters, its growth was impressive as it averaged 20.8% year-on-year increases. This alternate topline metric grew slower than total sales, meaning the company recognizes revenue faster than it collects cash - a headwind for its liquidity that could also signal a slowdown in future revenue growth. The customer acquisition cost (CAC) payback period represents the months required to recover the cost of acquiring a new customer. Essentially, it's the break-even point for sales and marketing investments. A shorter CAC payback period is ideal, as it implies better returns on investment and business scalability. Zscaler is efficient at acquiring new customers, and its CAC payback period checked in at 39 months this quarter. The company's relatively fast recovery of its customer acquisition costs gives it the option to accelerate growth by increasing its sales and marketing investments. We were impressed by Zscaler's optimistic full-year EPS guidance, which blew past analysts' expectations. We were also glad its billings, revenue, EPS, and adjusted operating income outperformed Wall Street's estimates. Overall, we think this was still a solid quarter with some key areas of upside. The stock traded up 4.7% to $262.64 immediately following the results. Zscaler put up rock-solid earnings, but one quarter doesn't necessarily make the stock a buy. Let's see if this is a good investment. The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.
Time of India
6 days ago
- Business
- Time of India
Zscaler to acquire MDR specialist Red Canary to bolster zero-trust capabilities
NEW DELHI: Cloud security solutions provider Zscaler has signed an agreement to acquire managed detection and response (MDR) specialist, Red Canary , to bolster in-house zero-trust solutions. The deal, whose financial terms were not disclosed, is expected to close in August 2025. Founded in 2014, the privately-held startup has raised $135 million in multiple rounds from investors including Summit Partners, Noro-Moseley Partners and Kyrus Tech, according to data from market intelligence firm Tracxn. Its competitors include Carbon Black, Cyberhaven and Absolute Software. According to its website, Red Canary works with nearly 1,000 organisations, and provides MDR across its customers' cloud workloads, identities, SaaS applications, networks, and endpoints. 'With our innovative AI-powered risk management services like Risk360 and the acquired data fabric technology from Avalor, we are disrupting legacy security operations just like we did with our Zero Trust Exchange platform,' said Jay Chaudhry, CEO, chairman, and founder of Zscaler. 'By integrating Red Canary with Zscaler, we will deliver to our customers the power of a fully integrated Zero Trust platform and AI-powered security operations,' Chaudhry added. The San Jose, US-headquartered cybersecurity giant offers solutions to nearly 45% of the Fortune 500 companies . The companies said the integration of their solutions will enable security teams to detect, triage, investigate, and respond to threats with better speed and efficiency, helping organisations precisely tackle modern security challenges. 'Zscaler's global scale and reach provide the resources and granular data needed to fuel advanced AI, threat intelligence , and detection engineering, giving us a broader view of adversary behavior while enabling faster innovation across the board,' said Brian Beyer, CEO of Red Canary. Forrester analysts, however, expressed apprehensions about the foundation of the deal. 'While MDR is taking a turn towards more proactive capabilities and zero-trust can reduce the impact of breaches, zero-trust and MDR do not amplify one another. Therefore, bundling SSE with MDR is not a natural or compelling consumption model,' the analysts said in a blog article, analysing the deal. According to Forrester, the managed network security and the managed SIEM segments have failed to create synergies beyond bundling via a single catalog of services. 'In fact, the challenges created by this disconnect helped create MDR as a standalone market,' they said.
Yahoo
6 days ago
- Business
- Yahoo
Zscaler to acquire Red Canary
IT security company Zscaler has agreed to acquire Red Canary, a managed detection and response (MDR) provider. Financial terms of the deal have not been disclosed. The acquisition aims to transform security operations (SecOps) by integrating Red Canary's rapid threat investigation capabilities with Zscaler's extensive data and AI-driven workflows, Zscaler said. Red Canary helps in streamlining security workflows through automated remediation. Zscaler CEO, chairman, and founder Jay Chaudhry said: 'With our innovative AI-powered risk management services like Risk360 and the acquired data fabric technology from Avalor, we are disrupting legacy security operations just like we did with our Zero Trust Exchange platform. 'The proposed acquisition of Red Canary is a natural expansion of our capabilities into managed detection and response and threat intelligence to accelerate our vision of AI-powered SOC of the future. By integrating Red Canary with Zscaler, we will deliver to our customers the power of a fully integrated Zero Trust platform and AI-powered security operations.' Zscaler intends to integrate Red Canary's strengths with its own data assets and global intelligence from its ThreatLabz Security Research team to establish a unified Security Operations Center powered by both AI and human insight. Currently protecting close to 45% of Fortune 500 companies, Zscaler operates a large-scale cloud security platform that handles over 500bn transactions daily. The company has used this data foundation to develop AI-driven solutions such as Zscaler Digital Experience and Zscaler Exposure Management. Zscaler said the acquisition aims to address operational challenges in threat detection, including missed signals and incomplete analyses. By combining their respective technologies and expertise, Zscaler and Red Canary plan to offer improved threat triage, investigation, and response capabilities. Red Canary CEO Brian Beyer said: 'For over ten years, we've protected our customers by combining high-fidelity signals with agentic AI, behavioural analytics, and global threat intelligence—delivering fast, accurate, and high-quality threat detection and response. 'As part of Zscaler, we will elevate how IT and security teams address the rapidly shifting threat landscape with the strength of our combined technology and expertise. 'Zscaler's global scale and reach provide the resources and granular data needed to fuel advanced AI, threat intelligence, and detection engineering, giving us a broader view of adversary behaviour while enabling faster innovation across the board.' Subject to standard regulatory approvals and other customary conditions, the deal is expected to close in August 2025. "Zscaler to acquire Red Canary" was originally created and published by Verdict, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Arabian Post
7 days ago
- Business
- Arabian Post
Zscaler's Acquisition of Red Canary Signals a New Era in AI-Driven Cybersecurity
Zscaler has announced its intention to acquire Red Canary, a leading Managed Detection and Response provider, in a strategic move aimed at enhancing its capabilities in AI-powered cybersecurity. This acquisition is poised to bolster Zscaler's position in the cybersecurity landscape, particularly in the realm of AI-driven threat detection and response. The integration of Red Canary's MDR expertise with Zscaler's Zero Trust Exchange platform is expected to provide organizations with a more robust and proactive security posture. Red Canary's proficiency in threat detection and response complements Zscaler's existing AI and machine learning capabilities, enabling more efficient identification and mitigation of cyber threats. Zscaler's Zero Trust Exchange platform, which processes over half a trillion daily transactions, serves as the foundation for its AI-driven security solutions. The platform's scalability and real-time analysis capabilities are instrumental in delivering advanced threat detection and prevention. The acquisition of Red Canary is anticipated to further enhance these capabilities, providing deeper insights into security incidents and facilitating faster response times. ADVERTISEMENT The cybersecurity industry is witnessing a significant shift towards AI and machine learning to combat increasingly sophisticated threats. Zscaler's acquisition of Red Canary aligns with this trend, reflecting a commitment to leveraging AI for more effective security operations. By integrating Red Canary's MDR services, Zscaler aims to offer a more comprehensive security solution that addresses the evolving needs of organizations. This acquisition also underscores the growing importance of partnerships and integrations in the cybersecurity sector. Zscaler has previously collaborated with companies like CrowdStrike to enhance its AI and Zero Trust capabilities. The addition of Red Canary to its portfolio signifies a continued focus on expanding its ecosystem to provide holistic security solutions. The integration of Red Canary's services is expected to be seamless, given both companies' emphasis on cloud-native architectures and AI-driven approaches. This synergy is likely to result in improved threat detection accuracy, reduced response times, and enhanced overall security efficacy for clients. As cyber threats continue to evolve, organizations are seeking security solutions that are not only reactive but also predictive. The combination of Zscaler's AI capabilities with Red Canary's MDR expertise positions the company to meet this demand, offering proactive threat hunting and real-time response mechanisms.
