Zscaler Reports Strong Q4 Performance but Slower Growth Guidance for Fiscal 2027
Zscaler Inc. (NASDAQ: ZS) reported strong financial results in the fourth quarter of fiscal 2026, with revenue reaching $898 million and a year-over-year growth rate of 25%. The company's total ARR ended at $3.8 billion, driven by AI-related demand, particularly from its Security for AI product line which saw over 50% sequential bookings growth. Despite the momentum in AI adoption, Zscaler’s management guided toward a slower fiscal 2027 revenue growth rate of approximately 16.6–17.5%, down significantly from the previous year's performance. CFO Kevin Rubin attributed this to execution challenges such as sales transitions and new product adoption timelines. The company is preparing for future growth with its Agentic SecOps solution, expected to contribute in fiscal 2027’s second half. However, investors are being asked to accept a slower near-term trajectory while newer products scale up.
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