Zscaler Q4 2026: Ten Straight Beats, but Growth Is Slowing
As seen on the 24/7 Wall St. homepage on September 3, 2026.
A tenth straight EPS beat came with a catch: FY27 revenue guidance of $3.91 billion to $3.94 billion implies growth slowing to roughly 17% from 25% this year as the Red Canary contribution laps. Record 24% non-GAAP operating margin and ARR up 25% to $3.77 billion are what bulls will point to.
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Zscaler posted adjusted earnings of $1.19 per share in Q4 2026, exceeding expectations and extending its streak of beating EPS estimates to ten consecutive quarters. Revenue also came in ahead of expectations, growing roughly 25% year over year.
The Red Canary acquisition helped push total ARR up 25% to $3.77 billion, with organic ARR still growing 20%. Non-GAAP operating margin hit a record 24%, up from 22% a year earlier.
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Management guided FY27 revenue to roughly 17% growth, down from 25% in FY26. The company attributed the deceleration to the lapping of Red Canary's initial ARR contribution rather than softening demand.
CEO Jay Chaudhry framed agentic AI as the next growth catalyst, arguing Zscaler's zero trust architecture is suited to securing the AI agents and models enterprises are deploying at scale. Guidance implies roughly 19% top-line growth in Q1 FY27, while rising capital expenditures weigh on free cash flow. Margin expansion is the thing to monitor.
Mentioned: ZS