Squeezing operation is critical for continuous-variable quantum information, enabling encoding of information in phase space to a resolution otherwise forbidden by vacuum noise1. A universal squeezing gate that can squeeze arbitrary input states is particularly essential for continuous-variable quantum computation2,3. However, the fidelity of existing state-of-the-art implementations is ultimately limited due to their reliance on first synthesizing squeezed vacuum modes of unbounded energy4,5. Here, we circumvent this fundamental limitation by using a heralded squeezing gate. This allows improved gate fidelity without requiring more squeezed ancillary vacuum. For a specific target squeezing level for coherent states, we present measured fidelities higher than what would be possible using non-heralded schemes that utilize up to 15 dB (ref. 6) of best available ancilla squeezing. Our technique can be applied to non-Gaussian states and provides a promising pathway towards high-fidelity gate operations and fault-tolerant continuous-variable quantum computation.