05:35 AM EDT, 05/31/2024 (MT Newswires) -- (Updates with the stock move in the headline and the first paragraph.)

Zscaler's ( ZS ) shares were up 16% in premarket activity Friday after the company overnight reported a stronger-the-expected surge in fiscal Q3 earnings and sales while raising its full-year outlook.

The company reported fiscal Q3 non-GAAP net income Thursday of $0.88 per diluted share, up from $0.48 a year earlier.

Analysts polled by Capital IQ expected $0.65.

Revenue for the quarter ended April 30 was $553.2 million, up from $418.8 million a year earlier. Analysts surveyed by Capital IQ expected $536.1 million.

For fiscal Q4, the company expects non-GAAP EPS from $0.69 to $0.70 on revenue between $565 million to $567 million. Analysts polled by Capital IQ expect $0.67 and $565 million.

The firm raised its guidance for fiscal 2024 non-GAAP EPS to $2.99 to $3.01 from $2.73 to $2.77. It also increased the revenue outlook to $2.140 billion to $2.142 billion from $2.118 billion to $2.122 billion. Analysts expected $2.76 on revenue of $2.12 billion.

Price: 181.80, Change: +25.15, Percent Change: +16.05