Zscaler, Inc. · ZS · FY2026 Q4 · Calendar Q3 2026

Zscaler pairs strong Q4 execution with accelerating AI-security demand

Zscaler’s latest results support a constructive operating thesis: resilient enterprise demand and expanding AI-security adoption are supporting growth, while execution risks remain around sales productivity, Red Canary integration, and higher infrastructure costs.

Reported After market closeNASDAQTechnology $31.91B market cap
100quality score

Earnings scorecard

Reported versus consensus
Reported EPS $1.19 Consensus $1.09
EPS surprise +9.2% Reported versus consensus
Reported revenue $898.2M Consensus $877.0M
Revenue surprise +2.4% Reported versus consensus

Market reaction

event-close to next-session close
Stock move -4.5% Event window
SPY move -0.4% Same window
Abnormal move -4.1% Stock minus SPY
Volume 3.0× Versus trailing sessions
Subsequent drift +16.2% Up to 20 sessions
ZSSPY benchmark

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Transcript intelligence

What changed

The current quarter showed stronger execution and a raised outlook versus the prior quarter: operating margin reached a record 24.3%, Security for AI bookings accelerated, new AI-security products were introduced, and FY27 ARR growth guidance was set at 16.6%–17.4%. The focus also shifted toward clarifying Red Canary’s integration economics and managing higher MDR churn.

Guidance delta

Raised: FY27 guidance projects 16.6%–17.4% ARR growth, with continued investment in AI security and Zero Trust Everywhere.

Key takeaways

  • Fiscal 2026 Q4 ARR grew 25% year over year and operating margin reached a record 24.3%, beating guidance.
  • Security for AI bookings grew more than 50% sequentially in Q4, while Agentic SecOps and Endpoint AI Security broaden the product roadmap.
  • Red Canary is integrated, but management does not expect it to add net new ARR in FY27 and says its MDR churn remains higher than the core business.

Management priorities

  • Expand Security for AI, including Endpoint AI Security and Agentic SecOps.
  • Grow Zero Trust Exchange coverage for AI agents and non-seat-based offerings.
  • Increase sales coverage and data-center capacity while supporting AI workloads.

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Company context

Snapshot as of publication

Globally recognized, Zscaler, Inc. functions as a leading provider of cloud-based security solutions. Its core offerings include Zscaler Internet Access (ZIA), which ensures secure connectivity for a diverse range of entities – including users, servers, operational technology (OT), and IoT devices – when accessing external resources like software-as-a-service (SaaS) applications and general internet destinations. Complementing this, the Zscaler Private Access (ZPA) solution facilitates secure entry to internal applications residing in private or public clouds and traditional data centers. Zscaler also delivers Zscaler Digital Experience (ZDX), a tool that assesses the complete user journey across various business applications. ZDX then generates a clear, digestible digital experience score for individual users, specific applications, and different locations within an organization. Furthermore, the company's portfolio extends to advanced workload segmentation solutions.…

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Sources

  1. Earnings call transcript and parsed analysis · 2026-09-04T14:22:10.728428+00:00
  2. FN2 earnings calendar · 2026-09-20T01:23:12.707946+00:00
  3. Polygon adjusted daily market bars · 2026-09-20T23:20:47.047541+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-09-20T23:20:47.044504+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated . For educational purposes only; not investment advice.