The cybersecurity leader closed fiscal 2026 with $3.77 billion in ARR and a record 24% non-GAAP operating margin as management positions Zscaler for the agentic AI era.
Zscaler (ZS) reported strong fiscal fourth-quarter 2026 results, with revenue and annual recurring revenue both climbing 25% year over year as growing enterprise demand for cloud security and artificial intelligence protection fueled platform adoption.
Fourth-quarter revenue reached $898.2 million, while ARR increased to $3.77 billion. The company added $246 million in net new ARR during the quarter. Excluding the impact of its Red Canary acquisition, ARR grew 20% to $3.63 billion.
Profitability also improved substantially. Non-GAAP operating income rose to $218.4 million from $158.9 million a year earlier, pushing operating margin to a record 24%. Non-GAAP net income increased to $198.2 million, while adjusted earnings reached $1.19 per share, up from $0.89.
On a GAAP basis, Zscaler narrowed its quarterly operating loss to $15.5 million from $32.2 million and its net loss to $3.4 million from $17.6 million.
For fiscal 2026, revenue increased 25% to $3.35 billion, while non-GAAP operating income reached $767.1 million. Full-year adjusted earnings increased to $4.21 per share from $3.28.
Free cash flow totaled $779.1 million for the year, representing a 23% margin. Fourth-quarter free cash flow, however, fell to $60.8 million as capital expenditures and internal-use software investments increased significantly.
Looking ahead, Zscaler expects fiscal 2027 revenue between $3.908 billion and $3.938 billion, representing growth of approximately 17%. ARR is projected between $4.396 billion and $4.426 billion, while non-GAAP operating income is expected to reach $924 million to $932 million.
CEO Jay Chaudhry identified artificial intelligence as one of the largest opportunities in Zscaler’s history. The company is expanding beyond traditional user security into securing AI agents, models and workloads.
With Zero Trust SASE, Agentic SecOps, Data Security and Security for AI, Zscaler is positioning its platform around a major emerging challenge: enabling companies to deploy AI while simultaneously protecting themselves from AI-driven threats.
As enterprise adoption of agentic AI accelerates, Zscaler believes cybersecurity could become an increasingly critical layer of the broader AI infrastructure buildout.
