Zscaler pairs strong Q4 execution with accelerating AI-security demand

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.