Q4 FY2026 results
| Metric | Result | Change |
|---|---|---|
| Revenue | $898 million | up 25% year-over-year |
| Total ARR | $3.8 billion | up 25% year-over-year |
| Non-GAAP Operating Margin | 24.3% | up 220 basis points year-over-year |
| Net New ARR | $246 million | up 24% year-over-year |
Guidance and outlook
- Q1 FY2027 revenue is expected to be $935 million to $939 million.
- Full year FY2027 revenue is expected to be $3.908 billion to $3.938 billion.
- Full year FY2027 ARR is expected to be $4.396 billion to $4.426 billion.
- Full year FY2027 EPS is expected to be $4.86 to $4.90.
How management sounded
Positive (+7 on our -10 to +10 scale). Management highlighted record operating margins and strong ARR growth, noting that AI is a significant tailwind despite a modest workforce restructuring. Management sounded more upbeat than on 48% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
Sales productivity and churn
Asked: How has sales churn impacted productivity heading into fiscal 2027?
Answer: Management noted that Q4 had the highest sales productivity in four years and that leadership transitions are being managed, with new hires in place to support growth.
AI security competitive landscape
Asked: Why is Zscaler winning AI security deals against competitors?
Answer: Customers prefer an integrated platform over point solutions, and Zscaler's Zero Trust Exchange provides unique visibility and control for AI agents that competitors lack.
AgenticSecOps launch
Asked: What is unique about the upcoming AgenticSecOps solution?
Answer: It leverages Zscaler's proprietary telemetry to enable closed-loop remediation at machine speed, aiming to disrupt traditional human-centric SOC approaches.
Workforce restructuring
Asked: Why is the company restructuring while also hiring?
Answer: The restructuring is a reallocation of resources to prioritize AI and growth areas, while the company continues to add sales headcount to support enterprise expansion.
What to watch before the next call
- The impact of the ongoing sales leadership transition on FY2027 performance.
- The adoption rate of the new AgenticSecOps solution launching in the second half of FY2027.
- Continued capital expenditure levels due to higher component pricing for data center infrastructure.
