EarningsQ4 2026 Earnings Report
MX:ZS Q4 2026 EPS Results
Actual EPS$21.91
Consensus EPS$20.05
Beat/MissBeat by +$1.86
One Year Ago EPS$16.39
MX:ZS Q4 2026 Revenue Results
Actual Revenue$16.54B
Expected Revenue$16.15B
Beat/MissBeat by +$390.88M
YoY Revenue Growth+24.88%
Earnings Announcement Details
QuarterQ4 2026
Date09/03/2026
TimeAfter Close
Conference CallThursday, September 3, 2026
MX:ZS Upcoming Earnings
Zscaler's next earnings date is estimated for December 1, 2026, based on past reporting schedules.
Q4 2026 Earnings Call Audio
MX:ZS Q4 2026 Earnings Call
0:00 / 0:00
Q4 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q4 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive. Zscaler reported 25% revenue and ARR growth, accelerating organic net new ARR, record sales productivity, expanding enterprise adoption, strong Z-Flex activity, improving profitability and substantial momentum in AI security, data security and Zero Trust Everywhere. The main challenges were moderating fiscal 2027 growth guidance, elevated infrastructure costs and CapEx, lower free cash flow margin, workforce restructuring, sales leadership transitions and elevated Red Canary churn.Company Guidance
Strong Fiscal 2026 Finish
Q4 revenue and ARR each grew 25% year-over-year, net new ARR grew 24%, and non-GAAP operating margin reached a record 24.3%. Full-year revenue grew 25%, free cash flow margin was 23%, and the company exceeded the Rule of 40 at approximately 49%.
Accelerating Organic Net New ARR
Excluding Red Canary, Q4 net new ARR was $232 million, up 17% year-over-year, while total ARR excluding Red Canary grew 20%. Net new ARR growth accelerated from 7% in fiscal 2025 to 10% in the first half of fiscal 2026 and 17% in Q4.
Broad-Based Revenue Growth
Q4 revenue was $898 million, up 25% year-over-year and 6% sequentially, exceeding the high end of guidance. The Americas grew approximately 30%, EMEA grew approximately 17%, and APJ grew 23%. Full-year revenue was $3.4 billion, up 25%.
Expansion of Enterprise Customer Base
The company closed a record number of $1 million-plus new ACV deals, and the number of customers with more than $10 million in ARR nearly doubled year-over-year. Zscaler ended the quarter with 785 customers generating over $1 million in ARR, up 18%, and 4,182 customers generating more than $100,000 in ARR, up 20%.
Growth in Non-Seat-Based Solutions
Non-seat-based metered usage solutions delivered approximately 30% of new and upsell ACV in Q4 and for the full year. ARR tied to these offerings grew more than 100% year-over-year.
Strong Security for AI Momentum
Security for AI bookings increased more than 50% sequentially in Q4 on top of a strong Q3, and the security for AI pipeline increased 75% sequentially. Management said it was seeing strong proactive inbound interest from new and existing customers with no budget constraints.
AI Security Product Expansion
Zscaler introduced Zero Trust Exchange for agents and Endpoint AI Security, both in early access, and expects them to scale in the second half of fiscal 2027. The company also planned to launch its Agentic SecOps solution on September 9, combining Zscaler telemetry with Red Canary's managed detection and response experience.
Large Security for AI Customer Wins
A Fortune 500 transportation customer signed a notable 7-figure Z-Flex upsell for the security for AI portfolio, selected Zscaler over two major platform competitors, and expanded its ARR to nearly $10 million. A Fortune 500 semiconductor manufacturer also signed a 7-figure upsell to secure a company-wide rollout of Claude Cowork.
Data Security Attach and Expansion
Seventy percent of security for AI deals in the quarter included Zscaler's data security solution. A large global asset management firm selected Zscaler's data security posture management solution over a privately held DSPM vendor, increasing its annual spend by nearly 40% to more than $5 million of ARR.
Zero Trust SASE and New Logo Wins
A Global 2000 financial services customer expanded to Zscaler Private Access with AI-powered application segmentation for 120,000 users, increasing ARR by nearly 50%. A Fortune 500 life sciences company signed a 7-figure new-logo deal across 75,000 users, deploying Zero Trust SASE and security for AI while displacing a legacy firewall-based SASE platform.
Zero Trust Branch and Cloud Traction
A Global 2000 health care equipment manufacturer signed a 7-figure new-logo deal for Zero Trust Branch across critical production sites, displacing a long-term legacy vendor. Zscaler also added a managed Zero Trust Cloud service through Google Cloud that can be configured in under 10 minutes, expanding its existing AWS offering and enabling multi-cloud flexibility.
Growth in Zero Trust Everywhere Customers
The company exited Q4 with more than 950 Zero Trust Everywhere enterprises, compared with over 700 in Q3 and over 350 at the end of fiscal 2025.
Additional Large Customer Expansion
A Fortune 500 aerospace customer expanded its Zero Trust Cloud deployment during a divestiture to securely migrate workloads, increasing its ARR by more than 30% to over $5 million. A Global 2000 services customer increased ARR by nearly 90% to more than $5 million in a 5-year 8-figure Z-Flex deal, and a Global 2000 retail and wholesale customer increased annual spend by 140% in a 3-year 8-figure Z-Flex deal.
Record Z-Flex Momentum
Z-Flex generated over $770 million in Q4 total contract value, up more than 60% quarter-over-quarter, and more than $1.7 billion for fiscal 2026. Fiscal 2026 Z-Flex customers saw an average ARR uplift of nearly 30%.
Improved Sales Productivity
Q4 delivered double-digit sales productivity growth and the highest quarterly productivity ever reported by the company. Fiscal 2026 had the highest annual sales productivity since 2022, reflecting improvements in the account-centric sales motion and broader platform adoption.
Profitability and Gross Margin Improvement
Q4 non-GAAP gross margin was 80.2%, compared with 79.3% a year ago. Non-GAAP operating income was $218 million, up $60 million or 37% year-over-year, and operating margin increased 220 basis points to 24.3%. Full-year operating margin was 22.9%, up 120 basis points.
Strong Balance Sheet and Cash Generation
Zscaler ended the quarter with approximately $3.5 billion in cash, cash equivalents and short-term investments against $1.7 billion of debt. Q4 operating cash flow was $279 million, and full-year free cash flow was $779 million.
Positive Fiscal 2027 Outlook
Fiscal 2027 guidance calls for ARR of $4.396 billion to $4.426 billion, representing approximately 16.6% to 17.4% year-over-year growth; revenue of $3.908 billion to $3.938 billion, representing 16.6% to 17.5% growth; operating margin of approximately 23.7%; EPS of $4.86 to $4.90; and free cash flow margin of approximately 23% to 23.5%.
Expanded Go-to-Market Coverage
Zscaler is adding dedicated new-logo sales executives focused on enterprise opportunities, expanding specialty teams and channel resources, and increasing coverage in thinner parts of the enterprise market. The company has approximately 4,600 customers out of 20,000 targeted companies.
Fortune 500 Penetration Improvement
Fortune 500 penetration increased from 45% to 50%, and the company reported a record quarter for new $1 million-plus ACV deals.
Agentic SecOps Platform Opportunity
Zscaler said its platform processes more than 750 billion transactions per day, providing telemetry for its Agentic SecOps offering. Management expects the solution to take time to ramp, begin contributing in the second half of fiscal 2027, and contribute further in fiscal 2028.
Symmetry Technology Integration
Management described Symmetry as an innovative access-graph technology that connects entities with the data sources they access. Although the acquisition has little revenue, the technology is being integrated into Zero Trust Exchange for agents, cloud workloads and devices.
MX:ZS Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed