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Q2 Rundown: Zscaler (NASDAQ:ZS) Vs Other Cybersecurity Stocks

By: StockStory

October 16, 2025 at 23:31 PM EDT

ZS Cover Image

Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Zscaler (NASDAQ: ZS) and its peers.

Cybersecurity continues to be one of the fastest-growing segments within software for good reason. Almost every company is slowly finding itself becoming a technology company and facing rising cybersecurity risks. Businesses are accelerating adoption of cloud-based software, moving data and applications into the cloud to save costs while improving performance. This migration has opened them to a multitude of new threats, like employees accessing data via their smartphone while on an open network, or logging into a web-based interface from a laptop in a new location.

The 9 cybersecurity stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady as they are up 2.3% on average since the latest earnings results.

Zscaler (NASDAQ: ZS)

Pioneering the "zero trust" approach that has fundamentally changed enterprise network security, Zscaler (NASDAQ: ZS) provides a cloud-based security platform that connects users, devices, and applications securely without traditional network-based security hardware.

Zscaler reported revenues of $719.2 million, up 21.3% year on year. This print exceeded analysts’ expectations by 1.6%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ billings estimates and revenue guidance for next quarter topping analysts’ expectations.

“We had an outstanding Q4, in which we achieved a new milestone of more than $3 billion of Annual Recurring Revenue while achieving our highest ever operating margin for a quarter. We believe Zscaler's Zero Trust and AI security solutions are imperative in today’s world and are driving robust demand,” said Jay Chaudhry, Chairman and CEO of Zscaler.

Zscaler scored the highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 8.9% since reporting and currently trades at $299.

We think Zscaler is a good business, but is it a buy today? Read our full report here, it’s free for active Edge members.

Best Q2: Varonis Systems (NASDAQ: VRNS)

Beginning with protecting Windows file shares in 2005 and evolving into a comprehensive security platform, Varonis Systems (NASDAQ: VRNS) provides data security software that helps organizations protect sensitive information, detect threats, and comply with privacy regulations.

Varonis Systems reported revenues of $152.2 million, up 16.7% year on year, outperforming analysts’ expectations by 2.8%. The business had a very strong quarter with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.

Varonis Systems delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 11.1% since reporting. It currently trades at $60.29.

Is now the time to buy Varonis Systems? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q2: Tenable (NASDAQ: TENB)

Starting with the widely-used Nessus vulnerability scanner first released in 1998, Tenable (NASDAQ: TENB) provides exposure management solutions that help organizations identify, assess, and prioritize cybersecurity vulnerabilities across their IT infrastructure and cloud environments.

Tenable reported revenues of $247.3 million, up 11.8% year on year, exceeding analysts’ expectations by 2.2%. Still, it was a slower quarter as it posted EPS guidance for next quarter missing analysts’ expectations significantly and a significant miss of analysts’ annual recurring revenue estimates.

As expected, the stock is down 8.1% since the results and currently trades at $29.63.

Read our full analysis of Tenable’s results here.

CrowdStrike (NASDAQ: CRWD)

Known for detecting the massive SolarWinds hack in 2020 that compromised numerous government agencies, CrowdStrike (NASDAQ: CRWD) provides cloud-based cybersecurity solutions that protect endpoints, cloud workloads, identity, and data through its Falcon platform.

CrowdStrike reported revenues of $1.17 billion, up 21.3% year on year. This print surpassed analysts’ expectations by 1.7%. It was a strong quarter as it also produced an impressive beat of analysts’ EBITDA estimates and full-year EPS guidance exceeding analysts’ expectations.

The stock is up 13.4% since reporting and currently trades at $479.13.

Read our full, actionable report on CrowdStrike here, it’s free for active Edge members.

Qualys (NASDAQ: QLYS)

Originally developed to address the growing complexity of IT security in the cloud era, Qualys (NASDAQ: QLYS) provides a cloud-based platform that helps organizations identify, manage, and protect their IT assets from cyber threats across on-premises, cloud, and mobile environments.

Qualys reported revenues of $164.1 million, up 10.3% year on year. This result beat analysts’ expectations by 1.7%. Overall, it was a strong quarter as it also put up a solid beat of analysts’ EBITDA estimates and full-year EPS guidance beating analysts’ expectations.

The stock is down 2.1% since reporting and currently trades at $128.

Read our full, actionable report on Qualys here, it’s free for active Edge members.

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

Symbol	Price	Change (%)
AMZN	213.04	-1.43 (-0.67%)
AAPL	252.29	+4.84 (1.96%)
AMD	233.08	-1.48 (-0.63%)
BAC	51.28	+0.84 (1.67%)
GOOG	253.79	+1.91 (0.76%)
META	716.91	+4.84 (0.68%)
MSFT	513.58	+1.97 (0.39%)
NVDA	183.22	+1.41 (0.78%)
ORCL	291.31	-21.69 (-6.93%)
TSLA	439.31	+10.56 (2.46%)

Symbol

Price

Change (%)

AMZN

213.04

-1.43 (-0.67%)

AAPL

252.29

+4.84 (1.96%)

AMD

233.08

-1.48 (-0.63%)

BAC

51.28

+0.84 (1.67%)

GOOG

253.79

+1.91 (0.76%)

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