By Senad Karaahmetovic

Shares of Zscaler (NASDAQ:) are up almost 4% in premarket trading Friday after the software maker reported stronger-than-expected Q3 financial results.

The ZS Q3 adjustedEPS was 17c. This is compared with 15c the previous year and well above analyst consensus at 11c per share. This was 63% more than the analyst consensus of $271.7 millions.

ZS anticipates an adjusted EPS of between 20c and 21c for this quarter. This is also higher than analyst estimates of 17c per shares. Analysts were expecting $292 million. The company expects Q4 revenues to be in the $304-$306 range.

ZS anticipates an adjusted earnings per share of between 64c and 65c for the entire fiscal year. This is up from the 54c-56c forecast, beating estimates of 55c/share. ZS projects FY revenue at $1.08 billion. This is an increase of $1.05 million and more than $1.05 trillion.

Cloud security software manufacturer expects FY calculation billings to be around $1.43 Billion, an increase from its previous guidance of $1.37 Billion. Analysts also expected $1.37 trillion.

“As a result of increasing demand, we are also raising our fiscal year guidance on all financial metrics,” said Jay Chaudhry, Chairman and CEO of Zscaler.

“Enterprises continue to consolidate point products in favor of our integrated Zero Trust security platform, resulting in larger, multi-year commitments to Zscaler.”

Credit Suisse analyst Phil Winslow cut the price target to $310.00 per share from $410.00 after “strong” results.

“These results reinforce our thesis that Zscaler, as the flagbearer of cloud security with a differentiated architecture, is uniquely positioned to help drive transformational change toward Zero Trust security architectures, which will enable Zscaler to deliver more sustainable growth than consensus expects,” Winslow told clients in a note.

Similarly, Mizuho’s Gregg Moskowitz saw “very good” results.

“We remain confident that ZS is extremely well positioned for growth, and that its unique cloud proxy security architecture should enable it to thrive in an increasingly digital-enabled world. We also continue to expect significant improvements in monetization, particularly as newer offerings (ZDX/ZCP) gain further traction,” Moskowitz wrote in a client note.