Zscaler’s shares fell 1.7% after earnings, signaling a broadly mixed reception rather than a clear upside surprise. While ARR growth and operating margins remained solid, investors may have focused on the need to assess whether accelerating net-new ARR and AI-related demand can offset the company’s still-moderate 25% ARR growth.
- ARR grew 25% in the quarter, while non-GAAP operating margin was 24%.
- Net-new ARR growth excluding Red Canary accelerated to 17% in Q4.
- Security-for-AI bookings increased more than 50% sequentially, building on strong growth in Q3.
- Management cited significant AI-driven demand, including hundreds of frontier-AI risk assessments for global enterprises.
- Zscaler processes more than 750 billion transactions per day through its distributed security cloud, supporting its AI-powered security capabilities.
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