Zscaler, Inc.

At the Citi Global TMT Conference, Zscaler reported that growth has accelerated thanks to stronger sales efficiency, broader product adoption and customer expansion; net new ARR rose to 17% in the fourth quarter of fiscal 2026. The company is expanding its platform to four pillars (Zero Trust Everywhere, AI Security, Data Security, Agentic SecOps) and reported over $100 million in AI security bookings, a 50% sequential increase in the fourth quarter. Zscaler has launched Agentic SecOps and acquired Red Canary, but is taking a conservative view and does not expect material near-term revenue from these new areas, as many customers are still in the evaluation phase. Management emphasized high customer satisfaction, a growing number of large customer contracts, and a cautious outlook for fiscal 2027 until the new products see broader adoption. » More on de.investing.com

Zscaler reported Q4 fiscal 2026 revenue of $898.2 million (+25%) and adjusted EPS of $1.19, both above expectations. The outlook for 2027, however, forecasts only 16.6–17.5% revenue and ARR growth, significantly slower than last year’s 25%. The company announced a global workforce reduction of about 3% and restructuring costs of $30–33 million; the free cash flow margin fell to 6.8% in the quarter from 16% in the prior quarter. The stock dropped noticeably in premarket trading. » More on de.investing.com

Zscaler reported adjusted EPS of $1.19 for Q4 on revenue of $898.2 million, beating analyst estimates. Annual revenue rose 25% to $3.4 billion, ARR also grew 25% to $3.8 billion, and the operating non-GAAP margin reached a quarterly record of 24.3%. Management cites AI security, Zero Trust and data security as key growth drivers and expects revenue for the current year between $3.908 billion and $3.938 billion, forecasting continued strong demand though CapEx and sales transitions could pose risks. » More on de.investing.com