Results
Zscaler Announces Strong Fourth Quarter and Fiscal 2026 Financial Results
4Achieves strong Q4 and FY26 revenue growth of 25% year over year
3Generates Q4 and FY26 ARR growth of 25% year over year
SAN JOSE, California - Sept 3, 2026 - Zscaler, Inc. (Nasdaq: ZS), the leader in cloud security, today announced financial results for its fiscal fourth quarter and fiscal year ended July 31, 2026 .
Management commentary
“AI represents one of the most significant opportunities in Zscaler's history.
By connecting users, workloads, branches, and now agents directly to the applications they need without placing them on the network, we are uniquely equipped to help companie s both combat the threats created by agentic AI and securely deploy AI ag ents and models,” said Jay Chaudhry, CEO, Chairman and Founder of Zscaler.
“Our continued innovation across Zero Trust SASE, Agentic SecOps, Data Security, and Security for AI is driving increased platform adoption and creating new avenues for growth, as reflected in our strong Q4 results.
As AI becomes foundational to how organizations operate, we are well positioned to extend our leadership as the cybersecurity platform for the AI era.”
5“We delivered a strong fourth quarter, with revenue and ARR both growing 25% year over year, net new ARR growing 24%, and non-GAAP operating margin reaching a record 24%,” said Kevin Rubin, chief financial officer of Zscaler.
“Our growth engine continues to broaden beyond users, with a strong contribution from non-seat-based solutions, continued Z-Flex momentum, record large-deal activity, and improving sales productivity.
I am excited about our momentum as we enter fiscal 2027.”
Results
Fourth Quarter Fiscal 2026 Results
1Revenue: Grew 25% year over year to $898.2 million.
ARR: Grew 25% year over year to $3,771 million, of which $246 million was net new ARR during the fourth quarter of fiscal 2026.
Excluding the acquisition of Red Canary, which contributed ARR of $141 million, ARR grew 20% to $3,630 million and net new ARR grew 17%.
Income (loss) from operations: GAAP loss from operations was $15.5 million, or 2% of revenue, compared to $32.2 million, or 4% of revenue, in the fourth quarter of fiscal 2025.
Non-GAAP income from operations was $218.4 million, or a record 24% of revenue, compared to $158.9 million, or 22% of revenue, in the fourth quarter of fiscal 2025.
Net income (loss): GAAP net loss was $3.4 million, compared to $17.6 million in the fourth quarter of fiscal 2025.
Non-GAAP net income was $198.2 million, compared to $146.7 million in the fourth quarter of fiscal 2025.
Net income (loss) per share, diluted: GAAP net loss per share, diluted, was $0.02, compared to $0.11 in the fourth quarter of fiscal 2025.
Non-GAAP net income per share was $1.19, compared to $0.89 in the fourth quarter of fiscal 2025.
Cash flow: Cash provided by operations was $279.3 million, or 31% of revenue, compared to $250.6 million, or 35% of revenue, in the fourth quarter of fiscal 2025.
Free cash flow was $60.8 million, or 7% of revenue, compared to $171.9 million, or 24% of revenue, in the fourth quarter of fiscal 2025, reflecting capex and internal use software of $218.5 million in the fourth quarter of fiscal 2026 versus $78.7 million in the fourth quarter of fiscal 2025.
7Deferred revenue: Grew 19% year-over-year to $2,926 million as of July 31, 2026 .
Full Year Fiscal 2026 Results
2Revenue: Grew 25% year over year to $3,353 million.
8Excluding the acquisition of Red Canary, Revenue grew 20% to $3,209 million .
Income (loss) from operations: GAAP loss from operations was $133.3 million, or 4% of revenue, compared to $128.5 million, or 5% of revenue, in fiscal 2025.
Non-GAAP income from operations was $767.1 million, or 23% of revenue, compared to $580.1 million, or 22% of revenue, in fiscal 2025.
Net income (loss): GAAP net loss was $63.2 million, compared to $41.5 million in fiscal 2025.
Non-GAAP net income was $704.2 million, compared to $534.8 million in fiscal 2025.
Net income (loss) per share, diluted: GAAP net loss per share, diluted, was $0.39, compared to $0.27 in fiscal 2025.
Non-GAAP net income per share was $4.21, compared to $3.28 in fiscal 2025.
Cash flow: Cash provided by operations was $1,130 million, or 34% of revenue, compared to $972.5 million, or 36% of revenue, in fiscal 2025.
Free cash flow was $779.1 million, or 23% of revenue, compared to $726.7 million, or 27% of revenue, in fiscal 2025.
Outlook
Financial Outlook
For the first quarter of fiscal 2027, the company expects:
6Revenue of $935 million to $939 million, approximately 19% year-over-year growth.
Non-GAAP gross margin of approximately 80%
Non-GAAP income from operations of $215 million to $217 million, approximately 25% to 26% year-over-year growth, representing a 23% operating margin.
Non-GAAP net income per share of approximat ely $1.15 to $1.16, assuming approximately 170 million fully diluted shares outstanding and a non-GAAP tax rate of 21%.
For the full year fiscal 2027, the company expects:
ARR of $4.396 billion to $4.426 billion, growth of approximately 16.6% to 17.4%.
Revenue of approximately $3.908 billion to $3.938 billion, growth of 16.6% to 17.5%.
Non-GAAP gross margin of approximately 80%
Non-GAAP income from operations of $924 million to $932 million, growth of approximately 21%.
Non-GAAP net income per share of $4.86 to $4.90, assuming approximately 173 million fully diluted shares outstanding and a non-GAAP tax rate of 21%.
Free cash flow margin of approximately 23.0 to 23.5%.
Results
(3) The dilutive impact of acquisition-related stock-based compensation expense and related payroll taxes was $0.12 and $0.05 per share for the fourth quarter of fiscal 2026 and fiscal 2025, respectively, and $0.34 and $0.20 per share for fiscal 2026 and fiscal 2025, respectively.
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