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List of All Reports - Check It Out
Earnings analysis included today, at a glance:
Zscaler (ZS) Q4 FY2026
Ciena Corporation (CIEN) Q3 FY2026
lululemon (LULU) Q2 FY2026
Snowflake (SNOW) Q2 FY2027
Broadcom (AVGO) Q3 FY2026
Medtronic (MDT) Q1 FY2027
Palo Alto Networks (PANW) Q4 FY2026
Dell Technologies (DELL) Q2 FY2027
Disclaimer: This analysis is for informational & educational purposes only and should not be construed as investment advice. Investors should conduct their own due diligence before making investment decisions. Past performance does not guarantee future results.
Zscaler (ZS): Q4 FY2026 Earnings Analysis
Quarter at a Glance
Zscaler closed its fiscal year with revenue of $898 million, up 25% year over year, and a record non-GAAP operating margin of 24.3%.
ZS Q4 FY2026 (quarter ended July 31, 2026)
Revenue: $898M, up 25% YoY
Total ARR: $3.8B, up 25% YoY
Non-GAAP operating margin: 24.3% (record)
RPO: $7.4B, up 27% YoY
The full fiscal year picture was just as solid. FY2026 revenue came in at roughly $3.4 billion, also up 25%, with free cash flow of $779 million representing a 23% margin.
ZS FY2026 full year
Revenue: ~$3.4B, up 25%
Free cash flow: $779M (23% margin)
Customers with $1M+ ARR: 785, up 18%
Zero Trust Everywhere enterprises: 950+
A few details worth attention:
Net new ARR excluding the Red Canary acquisition grew 17% to $232 million, showing organic momentum alongside M&A.
Security for AI bookings grew more than 50% sequentially in the quarter.
The Z-Flex licensing program generated over $1.7 billion in total contract value during FY2026.
What Drove the Quarter
Management called AI the largest tailwind in company history. Enterprises rushing to deploy AI agents need exactly what Zscaler sells: zero trust access controls and data security that inspect traffic without relying on legacy network perimeters.
Demand signals from the call:
- AI security bookings up 50%+ sequentially
- Highest quarterly sales productivity in company history
- Data security and Zero Trust Everywhere led growth
The Red Canary acquisition is being put to work fast. Zscaler plans to launch an Agentic SecOps solution on September 9, 2026, designed to detect and respond to threats at machine speed using AI agents.
Not everything was expansionary. The company announced a restructuring affecting about 3% of its workforce, with a $30 million to $33 million charge, redirecting spend toward AI initiatives. Investors generally read this as disciplined reallocation rather than distress.
Guidance and Management Signals
For Q1 FY2027, Zscaler expects revenue of $935 million to $939 million and non-GAAP EPS of $1.15 to $1.16.
ZS FY2027 guidance
Revenue: $3.908B to $3.938B
ARR: $4.396B to $4.426B
Non-GAAP EPS: $4.86 to $4.90
FCF margin: 23% to 23.5%
The implied full-year revenue growth of roughly 17% sits below the FY2026 pace, which partly reflects conservative early-year guidance habits and the law of large numbers.
RPO growth of 27% suggests the booked business pipeline is growing faster than recognized revenue.
Bottom Line for Investors
ZS at a glance
Why bulls are buying:
25% ARR growth, record margins, AI security
demand inflecting, and Agentic SecOps launching this week.
Best for:
Growth investors wanting cybersecurity exposure with
strong free cash flow.
Main risks:
Decelerating implied FY27 growth, restructuring
execution, premium valuation vs. peers.
Catalysts:
Agentic SecOps launch (Sept 9), Red Canary cross-sell,
Z-Flex expansion, AI security budget cycles.
Official sources & data: