Companies /Technology

Zscaler Inc

NASDAQ: ZS Software - Infrastructure
$197.47
▲ $5.89 (+3.07%) today
Markets closed · 5:03pm ET

Q4 2026 Earnings

Reported Sep 3, 2026, 4:08pm ET · SEC source
$1.19
Beat +9.17%
EPS · est. $1.09 Adjusted
$898.2M
Beat +2.35%
Revenue · est. $877.6M
10 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−15%−10%−5%0Sep 3Sep 4report 4:08pm ETearnings−0.4%−13.3%
−15%−10%−5%0Sep 3Sep 4earnings−0.4%−13.3%
ZS −13.3%S&P 500 −0.4%
−15%−10%−5%0Sep 3Sep 4report 4:08pm ETearnings+0.0%−13.3%
−15%−10%−5%0Sep 3Sep 4earnings+0.0%−13.3%
ZS −13.3%NASDAQ +0.0%
−12%−8%−4%0Sep 2Sep 11report 4:08pm ETearnings−1.0%−10.2%
−12%−8%−4%0Sep 2Sep 11earnings−1.0%−10.2%
ZS −10.2%S&P 500 −1.0%
−12%−8%−4%0Sep 2Sep 11report 4:08pm ETearnings−0.3%−10.2%
−12%−8%−4%0Sep 2Sep 11earnings−0.3%−10.2%
ZS −10.2%NASDAQ −0.3%
−4.50%
Day of report
−4.63%
Next session
+12.92%
One week

Did ZS Beat Earnings? Q4 2026 Results

Zscaler closed out fiscal 2026 on a strong note, delivering a fourth-quarter earnings beat that extended the company's winning streak to ten consecutive quarters of topping consensus EPS estimates. Adjusted earnings came in at $1.19 per share, clearing the $1.09 analyst consensus by 9.17%, while revenue of $898.18 million grew 24.9% year over year and edged past the $877.60 million estimate by 2.35%. The headline driver was the Red Canary acquisition, which contributed $141 million in ARR and helped lift total ARR 25% to $3.77 billion, even as organic ARR growth of 20% to $3.63 billion underscored durable underlying momentum. Non-GAAP operating margin reached a record 24%, up from 22% a year ago, reflecting improving cost leverage. CEO Jay Chaudhry positioned the company's zero trust architecture as a natural fit for securing the agentic AI workloads that enterprises are rapidly adopting, a theme analysts have latched onto ahead of fiscal 2027. Management guided full-year FY27 revenue of $3.91 billion to $3.94 billion, representing roughly 17% growth, with the deceleration largely reflecting the lapping of Red Canary rather than softening demand fundamentals.

Key Takeaways
  • 25% year-over-year revenue growth in Q4 and full year FY26
  • 25% ARR growth to $3,771 million; net new ARR of $246 million in Q4
  • Non-GAAP operating margin reached record 24% in Q4
  • Strong contribution from non-seat-based solutions
  • Record large-deal activity and improving sales productivity
  • Red Canary acquisition contributed $141 million ARR

“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 companies both combat the threats created by agentic AI and securely deploy AI agents and models.”

Zscaler CEO, on the earnings call

Forward Guidance & Outlook

For Q1 FY27, Zscaler expects revenue of $935M–$939M (~19% YoY growth), non-GAAP gross margin of ~80%, non-GAAP operating income of $215M–$217M (23% operating margin), and non-GAAP EPS of ~$1.15–$1.16 on ~170M diluted shares. For full-year FY27, the company expects ARR of $4.396B–$4.426B (16.6%–17.4% growth), revenue of ~$3.908B–$3.938B (16.6%–17.5% growth), non-GAAP operating income of $924M–$932M (~21% growth), non-GAAP EPS of $4.86–$4.90 on ~173M diluted shares, and free cash flow margin of ~23.0%–23.5%. The non-GAAP tax rate is set at 21%, reflecting the One Big Beautiful Bill Act.

ZS YoY Financials

Q4 2026 vs Q4 2025 · SEC filings Q4 2025 Q4 2026
$0$300.0M$600.0M$900.0M$719.2M$898.2MRevenue$547.6M$689.2MGross Profit$-10,195,459$-15,492,000Operating Income$-1,863,076$-3,369,000Net Income
$0$300.0M$600.0M$900.0MRevenueGross ProfitOperating IncomeNet Income

Figures from SEC filings and company reports. Not investment advice.