Zscaler Q4 2026 Results
Zscaler Inc. (NASDAQ:ZS) announced fourth‑quarter 2026 results that surpassed analyst expectations. Adjusted earnings per share were $1.19, outpacing the consensus estimate of $1.09, while revenue reached $898.2 million against the forecast of $876.96 million, representing a 25 % year‑over‑year increase from the comparable period.
Adjusted net income for the quarter was $198.2 million, up from $146.7 million a year earlier. Annual recurring revenue (ARR) grew 25 % YoY to $3.77 billion, with net new ARR of $246 million; excluding the Red Canary acquisition, which added $141 million of ARR, the underlying ARR growth was 20 % YoY. The company recorded a new high adjusted operating margin of 24 % of revenue.
Cash generated from operations amounted to $279.3 million, representing 31 % of quarterly revenue.
Outlook for Fiscal 2027
For the first quarter of fiscal 2027, Zscaler projects revenue between $935 million and $939 million, roughly 19 % higher than the prior year quarter, and adjusted EPS of $1.15 to $1.16. The midpoint of $937 million is noted as below typical analyst expectations for sequential growth.
For the full fiscal year 2027, the company forecasts revenue of $3.908 billion to $3.938 billion (16.6 %–17.5 % growth), ARR of $4.396 billion to $4.426 billion (approximately 16.6 %–17.4 % growth), adjusted operating income of $924 million to $932 million (about 21 % increase), and adjusted EPS of $4.86 to $4.90.
Management Commentary
Chief Financial Officer Kevin Rubin said the company’s growth engine is expanding beyond user‑based licenses, highlighting strong contributions from non‑seat‑based solutions, continued Z‑Flex momentum, record large‑deal activity, and improving sales productivity.