Zscaler, Inc. Q4 2026 Earnings Recap

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.

Key Takeaways

• 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.