Zscaler Reports Strong Fiscal 2026 Results with Growth in Revenue and Free Cash Flow
Zscaler reported strong fiscal 2026 results, driven by robust demand for its zero-trust platform and AI security solutions. Fourth-quarter revenue rose 25% year over year to $898 million, while full-year revenue reached $3.4 billion with free cash flow totaling $779 million. The company also achieved a record non-GAAP operating margin of 24.3%. Annual recurring revenue (ARR) grew by 25% to $3.8 billion, supported by strong enterprise deal activity and AI security bookings that increased more than 50% sequentially. For fiscal 2027, Zscaler expects slower growth with full-year revenue projected between $3.908 billion and $3.938 billion, representing a roughly 17% increase from the prior year. The company is also restructuring approximately 3% of its workforce to focus on AI and other strategic initiatives. Despite this, Zscaler remains optimistic about long-term growth in enterprise demand for cybersecurity solutions. Zscaler's CEO highlighted continued momentum across key metrics including customer base expansion and strong performance obligations, with over $7.4 billion remaining under contract at the end of fiscal 2026.
Tickers: $ZS
Topics: AI security cybersecurity revenue growth workforce restructuring