Zscaler Posts 25% Revenue Growth, Eyes AI-Driven Expansion — Zscaler, Inc.

Event summary

Zscaler reported Q4 2026 revenue of $898.2M, up 25% YoY, with full-year revenue at $3.35B.
ARR grew 25% YoY to $3.77B, with $246M in net new ARR in Q4.
Non-GAAP operating margin hit a record 24% in Q4.
Free cash flow margin was 7% in Q4, down from 24% YoY due to higher capex.
Zscaler expects FY2027 revenue growth of 16.6% to 17.5%.

The big picture

Zscaler's strong Q4 2026 results reflect the growing demand for cloud security solutions, particularly as enterprises navigate the complexities of AI integration. The company's strategic focus on Zero Trust SASE and AI-driven security positions it well in a market increasingly concerned with data protection and operational resilience. However, maintaining profitability while scaling AI investments will be critical for sustained growth.

What we're watching

AI Integration: How Zscaler's focus on AI-driven security solutions will impact its competitive positioning in the cloud security market.
Operational Efficiency: Whether Zscaler can sustain its record non-GAAP operating margin amid increasing investment in AI and other growth initiatives.
Cash Flow Management: The pace at which Zscaler can improve its free cash flow margin, given the significant capex investments in Q4.