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

Zscaler (ZS) reported total revenue of $719.23 million for its most recent quarter, a 21.3% increase year-over-year, with varied international segment performance. Asia Pacific revenue of $114.26 million (15.9% of total) surpassed analyst expectations by 3.38%, while Europe, Middle East and Africa (EMEA) and Other International segments slightly missed consensus. Analysts project continued robust growth, forecasting current fiscal quarter revenue of $773.36 million (up 23.2% YoY) and full-year revenue of $3.27 billion (up 22.3% YoY), underscoring the critical role of international markets for Zscaler's overall growth trajectory.

Analysis

Zscaler (ZS) reported robust top-line growth for the quarter ended July 2025, with total revenue increasing 21.3% year-over-year to $719.23 million. A detailed examination of its international operations reveals a mixed but generally positive performance. The Asia Pacific (APAC) region was a notable bright spot, delivering $114.26 million in revenue, which represents a 3.38% positive surprise against Wall Street estimates and an increase in its contribution to total revenue to 15.9% from 15.2% a year prior. Conversely, the Europe, Middle East, and Africa (EMEA) segment, while being the largest international contributor at 29.3% of total revenue, slightly missed consensus by -0.17% and saw its share of revenue decline from 30.4% year-over-year. Analyst projections remain strong, forecasting an acceleration in growth to 23.2% YoY for the current quarter and 22.3% for the full year, indicating confidence in the company's trajectory. This outlook is juxtaposed with the stock's recent performance: a 6.1% loss over the past three months, significantly underperforming the S&P 500, followed by a 5.8% gain in the past month, suggesting a potential inflection point for investor sentiment.

Key Decisions for Investors

• Investors should closely monitor the Asia Pacific segment's performance, as its outperformance is currently a critical driver offsetting minor weakness elsewhere and is essential for meeting the strong full-year revenue growth forecast of 22.3%.
• It is prudent to scrutinize the EMEA segment's results in the coming quarters, as its slight revenue miss and declining share of the total revenue mix could represent a headwind if the trend continues.
• Given the stock's recent underperformance followed by a sharp one-month rebound, the strong forward guidance could support continued positive momentum, but the mixed regional results warrant a balanced position until EMEA performance stabilizes or accelerates.