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Zscaler’s SquareX Acquisition: How It Is Quietly Turning Chrome & Edge Into Security Fortresses!

Zscaler has entered fiscal 2026 with strong operational momentum, accelerating ARR growth to 26%, expanding free cash flow margins above 50%, and pushing its AI Security business beyond management’s original targets. Against this backdrop, the company’s acquisition of SquareX marks a strategically important, if understated, move. Announced in early February 2026, the deal extends Zscaler’s Zero Trust architecture directly into standard enterprise browsers rather than relying on heavyweight agents or proprietary secure browsers. This timing is notable: enterprises are grappling with unmanaged devices, BYOD environments, and growing browser-based attack surfaces amplified by GenAI usage. Zscaler’s management has repeatedly emphasized that the next phase of Zero Trust involves securing not just users and workloads, but interactions—especially those happening inside browsers where SaaS, AI tools, and sensitive data converge. SquareX’s lightweight browser-extension approach aligns closely with this vision, potentially complementing Zscaler’s Zero Trust Exchange, AI Guardrails, and data security modules.