Zscaler posts fourth-quarter double beat, lifts guidance

Zscaler Inc (NASDAQ: ZS) reported financial results for the fourth quarter of fiscal 2026 after the market close on Thursday. The cybersecurity company said revenue was $898.16 million, above the $877.36 million consensus estimate. Adjusted earnings came in at $1.19 per share, compared with analyst expectations of $1.08 per share, according to Pro. Total revenue rose 25% year-over-year.

Annual recurring revenue also increased 25% year-over-year to approximately $3.77 billion. Zscaler said it generated $279.3 million in cash flow from operations and $60.8 million in free cash flow during the quarter. It ended the period with about $928.35 million in cash and cash equivalents. The company also said AI represents one of the most significant opportunities in Zscaler's history and said its platform is equipped to help companies combat threats created by agentic AI and securely deploy AI agents.

Jay Chaudhry, chairman and CEO of Zscaler, said the company is seeing demand from enterprises. Zscaler said first-quarter revenue is expected to be in the range of $935 million to $939 million, versus estimates of $927.02 million. It expects first-quarter adjusted earnings of $1.15 to $1.16 per share, versus estimates of $1.08 per share. The company guided fiscal 2027 revenue to about $3.91 billion to $3.94 billion and full-year adjusted earnings to $4.86 to $4.90 per share.

Analysts are currently forecasting full-year revenue of $3.90 billion and adjusted earnings of $4.60 per share. Zscaler management will discuss the quarter on an earnings call set for 4:30 p.m. ET. ZS shares were up 0.97% in after-hours Thursday, trading at $179.53 at the time of publication, according to Pro.

The stock reached $196 in after-hours trading before easing back.