AI and Zero Trust Lift Zscaler

Zscaler closed out its July quarter on a strong note, with results that exceeded expectations and highlighted the company’s growing momentum in the cybersecurity market.

Revenue for the fiscal fourth quarter rose 21% year over year to $719 million, beating consensus estimates by $12 million. Earnings also came in ahead of expectations, with non GAAP EPS of $0.89—$0.09 above forecasts.

Underlying growth metrics reinforced the strength of demand. Calculated billings accelerated sharply, rising 32% year over year compared to 25% in the prior quarter, while annual recurring revenue reached $3.0 billion, up 22%.

Management also underscored that the company delivered a record quarterly operating margin, reflecting both efficient execution and the scalability of its business model.

A key driver of Zscaler’s performance continues to be enterprise adoption of its Zero Trust architecture, coupled with rising interest in AI powered security offerings. As organizations grapple with more complex and distributed IT environments, Zscaler’s ability to provide integrated cloud-based protection has positioned it as a critical partner.

Looking ahead, management’s fiscal 2026 guidance suggests confidence in sustaining growth. The company expects revenue to increase 22% year over year to roughly $3.27 billion, slightly ahead of consensus forecasts, with non-GAAP EPS projected at $3.66, in line with expectations. For the first time, Zscaler also issued ARR guidance, projecting 22% growth to $3.69 billion.

Beyond the numbers, Zscaler is expanding its capabilities to address emerging needs in cybersecurity. Its AI Guardrails solution, designed to secure generative AI workflows, is gaining early traction among customers.

Meanwhile, the recent acquisition of Red Canary, completed in August, broadens Zscaler’s managed detection and response (MDR) offerings, strengthening its ability to help enterprises proactively identify and mitigate threats.

Taken together, these results and initiatives highlight Zscaler’s ability to deliver both strong top-line growth and improving profitability. With continued demand for Zero Trust solutions, growing adoption of AI driven security, and a broadened services portfolio, the company appears well positioned to maintain its leadership in the cybersecurity market and drive shareholder value in the years ahead.