Zscaler (ZS) Company Report

Zscaler reported 26% total ARR growth, with the Red Canary acquisition contributing $83 million in recognized revenue.
The company is experiencing strong adoption of its Zero Trust Everywhere strategy, now with 450 customers across three platforms, and anticipates significant growth from Zero Trust Branch and Zero Trust Cloud.
Zscaler's AI security and data security offerings are expanding, with data security alone generating $450 million in ARR.
Management expressed confidence in the core business and reported improved sales productivity in Q1, following a transitional year.
The Zflex contract initiative is driving five-year deals and contributing to RPO growth, while the M&A strategy remains focused on small, token acquisitions to build an integrated platform.

3 days ago

Transcript

Zscaler Discusses Organic Growth, Zero Trust Everywhere, and AI Security Strategy

M&A

New Projects/Investments

Revenue Acceleration/Inflection

Zscaler reported strong organic business, with the Red Canary acquisition contributing $83 million in revenue, and expects continued strength in its core offerings.
The company is seeing robust adoption of its Zero Trust Everywhere strategy, with 450 customers utilizing multiple platforms, and is expanding significantly into AI security, processing over half a trillion transactions a day to enhance SecOps and secure AI applications.
Zscaler's data security platform has achieved $450 million ARR, integrating comprehensive DLP and posture management solutions, and its core business remains strong with 70% of current business coming from upsells, often through five-year Zflex commitments.
The company's M&A strategy focuses on "token acquisitions" that are small, early-stage, and synergistic, aiming to integrate them into its unified platform.

3 days ago

Transcript

Zscaler Discusses Organic Growth, AI Security, and Go-to-Market Strategy at UBS Conference

M&A

New Projects/Investments

Revenue Acceleration/Inflection

Zscaler's CEO clarified that the Red Canary acquisition contributed $83 million in recognized revenue, emphasizing the continued strength of the company's organic business.
The company is experiencing strong momentum in its Zero Trust Everywhere initiative, with 450 customers adopting solutions across three platforms, and anticipates significant growth from Zero Trust Branch and Cloud offerings.
Zscaler's AI security business, which includes agentic operations and security for AI applications, has surpassed $400 million in ARR and is built upon processing over half a trillion transactions daily.
Data security represents a substantial growth opportunity for Zscaler, with $450 million in ARR in this segment, driven by a comprehensive platform that integrates DSPM and inline DLP.
Following a transitional year, Zscaler reported improved sales productivity in Q1, with upsell now accounting for 70% of business and new five-year Zflex contracts positively impacting RPO.

3 days ago

Transcript

Zscaler Reports Strong Q1 Fiscal Year 2026 Results and Provides FY 2026 Outlook

Earnings

Guidance Update

Revenue Acceleration/Inflection

Zscaler reported a strong start to its fiscal year, with Q1 2026 revenue of $788 million and annual recurring revenue (ARR) of $3.2 billion, both reflecting 26% year-over-year growth. The company also achieved a free cash flow margin of 52%.
The company's three growth pillars—AI Security, Zero Trust Everywhere, and Data Security Everywhere—demonstrated accelerated growth. AI Security ARR grew over 80% year-over-year and is projected to exceed $500 million by the end of fiscal year 2026, ahead of its initial target.
For fiscal year 2026, Zscaler provided guidance for ARR in the range of $3.698 billion-$3.718 billion and revenue between $3.282 billion-$3.301 billion, representing year-over-year growth of approximately 22.7%-23.5%.
Ashwin Kesireddy transitioned from VP of Investor Relations to Product Manager of AI Security, and Kim Watkins will join Zscaler in early December to lead Investor Relations and Strategic Finance.

Nov 25, 2025, 9:30 PM

Transcript

Zscaler Reports Strong Q1 Fiscal Year 2026 Results with Accelerated ARR Growth

Earnings

Guidance Update

Revenue Acceleration/Inflection

Zscaler reported strong Q1 fiscal year 2026 results, with annual recurring revenue (ARR) reaching $3.2 billion, a 26% year-over-year increase, and revenue at $788 million, also up 26% year-over-year. The company achieved a Rule of 78 by combining its 52% free cash flow margin with its 26% revenue growth.
The AI Security pillar demonstrated significant growth, accelerating over 80% year-over-year and already exceeding the fiscal year 2026 target of $400 million in ARR, three quarters ahead of schedule. AI Security ARR is expected to surpass $500 million by the end of fiscal year 2026.
For Q2 fiscal year 2026, Zscaler expects revenue between $797 million and $799 million and earnings per share (EPS) in the range of $0.89 to $0.90. For the full fiscal year 2026, the company projects ARR between $3.698 billion and $3.718 billion and revenue between $3.282 billion and $3.301 billion.
All three growth pillars—AI Security, Zero Trust Everywhere, and Data Security Everywhere—saw accelerated ARR growth in the quarter, contributing to the strong top-line performance.

Nov 25, 2025, 9:30 PM

Transcript

Zscaler Reports Strong Q1 2026 Results and Provides Fiscal Year 2026 Guidance

Earnings

Guidance Update

Revenue Acceleration/Inflection

Zscaler reported a strong Q1 2026, with annual recurring revenue (ARR) growing 26% year-over-year to over $3.2 billion and revenue reaching $788 million, also up 26% year-over-year. The company achieved a free cash flow margin of 52%.
The AI Security pillar demonstrated significant growth, accelerating over 80% year-over-year and surpassing its FY26 target of $400 million ARR three quarters early, with expectations to exceed half a billion dollars by the end of fiscal year 2026.
Zscaler achieved its Zero Trust Everywhere goal of securing 390 enterprises three quarters ahead of schedule, now serving over 450 enterprises.
For fiscal year 2026, Zscaler provided guidance for ARR in the range of $3.698 billion to $3.718 billion and revenue between $3.282 billion and $3.301 billion.

Nov 25, 2025, 9:30 PM

Transcript

Zscaler Announces Strong Q1 2026 Results and Increased FY26 Guidance

Earnings

Guidance Update

Revenue Acceleration/Inflection

Zscaler reported strong Q1 2026 results, exceeding guidance with revenue of $788M (26% Y/Y growth) and Non-GAAP EPS of $0.96 (25% Y/Y growth).
Key business metrics demonstrated sustained growth, with Annual Recurring Revenue (ARR) reaching over $3.2B (26% Y/Y growth) and Remaining Performance Obligations (RPO) accelerating to $5.9B (35% Y/Y growth).
The company is operating at a Rule-of-78 for Q1'26, driven by 26% revenue growth and a 52% Free Cash Flow Margin.
Zscaler increased its FY26 guidance, projecting revenue between $3,282M and $3,301M and Non-GAAP EPS between $3.78 and $3.82.
AI-Security solutions surpassed $400M in ARR and the Zero Trust Everywhere initiative exceeded 450 enterprises, both achieving their FY26 targets three quarters ahead of schedule.

Nov 25, 2025, 9:30 PM

Presentation

Zscaler Reports Q1 Fiscal 2026 Financial Results

Earnings

Guidance Update

M&A

Zscaler (ZS) reported Q1 Fiscal 2026 revenue of $788.1 million, a 26% year-over-year increase, with Annual Recurring Revenue (ARR) growing 26% year-over-year to $3,204 million.
The company achieved a non-GAAP net income of $159.5 million and non-GAAP net income per share of $0.96 for Q1 Fiscal 2026.
Deferred revenue increased 32% year-over-year to $2,351.3 million and free cash flow was $413.3 million (52% of revenue) as of October 31, 2025.
For Q2 Fiscal 2026, Zscaler expects revenue of $797 million to $799 million and non-GAAP net income per share of $0.89 to $0.90. The full fiscal year 2026 revenue guidance is $3.282 billion to $3.301 billion, with non-GAAP net income per share of $3.78 to $3.82.
During Q1 Fiscal 2026, Zscaler completed the acquisitions of Red Canary Inc. and SPLXAI Inc. for a total of $692.0 million.

Nov 25, 2025, 9:07 PM

8-K

Zscaler acquires AI security pioneer SPLX

M&A

New Projects/Investments

Zscaler, Inc. (NASDAQ: ZS) announced on November 3, 2025, the acquisition of SPLX, an innovative AI security pioneer.
This acquisition extends the Zscaler Zero Trust ExchangeTM platform with shift-left AI asset discovery, automated red teaming, and governance.
The integration aims to secure the entire AI lifecycle from development through deployment, addressing the rapidly expanding attack surface and shadow AI sprawl.
SPLX's technology will create a new, dedicated, and natively integrated layer of AI protection within the Zscaler Zero Trust Exchange platform, encompassing AI Asset Discovery and Risk Assessment, Automated AI Red Teaming and Remediation, AI Runtime Guardrails and Prompt Hardening, and AI Governance and Compliance.

Nov 3, 2025, 1:05 PM

Press Release

Zscaler Publishes 2025 Ransomware Report

Zscaler's annual ThreatLabz 2025 Ransomware Report indicates a significant escalation in ransomware attacks, with attempts blocked by the Zscaler cloud rising 146% year-over-year.
The report highlights a strategic shift by ransomware groups towards extortion over encryption, evidenced by a 92% increase in the total volume of exfiltrated data and a 70% jump in public extortion cases.
Manufacturing, Technology, and Healthcare were identified as the most targeted industries, while the Oil & Gas sector experienced a staggering 935% increase in attacks.
The United States accounted for 50% of all ransomware attacks, significantly more than any other country.

Jul 29, 2025, 7:01 AM

Press Release

Earnings Transcripts

Quarterly earnings call transcripts for Zscaler.

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