Zscaler, Inc. (ZS) Q4 FY2026 earnings

Reported results

• Q4 FY2026 revenue: $898.2 million, up 25% year-over-year; FY2026 revenue: $3,352.5 million, up 25% year-over-year
• Q4 FY2026 ARR: $3,771 million, up 25% year-over-year with $246 million net new ARR; FY2026 ARR grew 25% (excluding Red Canary acquisition, ARR grew 20% to $3,630 million)
• Q4 FY2026 non-GAAP operating margin: 24% of revenue ($218.4 million); Q4 FY2025 non-GAAP operating margin: 22% ($158.9 million)
• Q4 FY2026 GAAP net loss: $3.4 million vs Q4 FY2025 GAAP net loss: $17.6 million; FY2026 GAAP net loss: $63.2 million vs FY2025 GAAP net loss: $41.5 million
• Q4 FY2026 non-GAAP net income per share, diluted: $1.19 vs Q4 FY2025: $0.89; FY2026 non-GAAP net income per share, diluted: $4.21 vs FY2025: $3.28
• FY2026 free cash flow: $779.1 million (23% of revenue) vs FY2025: $726.7 million (27% of revenue); Q4 FY2026 free cash flow: $60.8 million (7% of revenue) vs Q4 FY2025: $171.9 million (24% of revenue)

Guidance

• Q1 FY2027 revenue: $935 to $939 million, approximately 19% year-over-year growth
• Q1 FY2027 non-GAAP operating margin: 23% (non-GAAP income from operations of $215 to $217 million, 25-26% year-over-year growth)
• Q1 FY2027 non-GAAP net income per share, diluted: $1.15 to $1.16 (assuming approximately 170 million fully diluted shares outstanding and 21% non-GAAP tax rate)
• Q1 FY2027 non-GAAP gross margin: approximately 80%
• FY2027 ARR: $4.396 to $4.426 billion, approximately 16.6% to 17.4% growth
• FY2027 revenue: approximately $3.908 to $3.938 billion, 16.6% to 17.5% growth
• FY2027 non-GAAP income from operations: $924 to $932 million, approximately 21% growth
• FY2027 non-GAAP net income per share, diluted: $4.86 to $4.90 (assuming approximately 173 million fully diluted shares outstanding and 21% non-GAAP tax rate)
• FY2027 non-GAAP gross margin: approximately 80%
• FY2027 free cash flow margin: approximately 23.0% to 23.5%

Notes

Beginning in fiscal 2026, the company adopted a long-term projected non-GAAP tax rate of 21%, reduced from the previous 23% rate, in alignment with the One Big Beautiful Bill Act. This adjustment applies prospectively. Excluding the Red Canary acquisition (which contributed $141 million in ARR), FY2026 ARR grew 20% to $3,630 million. Q4 FY2026 capex and internal use software increased significantly to $218.5 million versus $78.7 million in Q4 FY2025.

Price and volatility reaction

The stock moved -4.5% on the print. No front-expiry chain was on file, so there is no straddle expected move. 30-day ATM implied volatility moved -28.7 vol points across the event (constant-maturity series — not the front-week crush).

Source

The figures above come from the earnings release the company filed with the SEC on 2026-09-03 (8-K, Item 2.02). Read the original filing on sec.gov.