Zscaler's Strong Financial Performance and Strategic Initiatives Justify Buy RatingWe maintain our Market Outperform rating and $240 price target on Zscaler, Inc. after the company reported solid F2Q25 results across all guided metrics, with non-GAAP EPS of $0.78 (consensus $0.69) on revenue of $647.9M (consensus $634.4), up 23% y/y, billings growth of 18% y/y (consensus 15% y/y), operating margin achieving 21.7% (consensus 20.1%), and a 22.0% non-GAAP FCF margin (consensus 11%) achieving a “Rule of 45” basis, with Chairman and CEO Jay Chaudhry commenting, “we are leaning into the opportunity presented by the refresh cycle… [and for our customers] to leapfrog to and free themselves from firewalls and other legacy appliances forever”; the stock is up ~15% YTD (after trading up ~5.4% during the after-hours session), versus down ~1.0% for the Russell 3000.