Zscaler, Inc. Q4 2026 Earnings Recap

Zscaler shares fell 4.5% after earnings, suggesting investors were more focused on the forward outlook than management’s positive AI and demand commentary. The transcript provided does not include specific guidance figures, so the precise driver of the decline cannot be confirmed.

Key Takeaways

• Fiscal-year ARR grew 25%; adjusted non-GAAP operating margin was 24%.
• Net new ARR growth excluding Red Canary accelerated to 17% in Q4.
• Security for AI bookings rose more than 50% sequentially in Q4, following a strong Q3, according to management.
• The CEO cited assessments of hundreds of enterprises: over 90% had AI applications, models, or servers exposed to the internet, and more than one-third had known exploitable vulnerabilities.
• The call excerpt ends before the full outlook and financial guidance, limiting assessment of what investors may have found disappointing.