Description

Zscaler’s $770 Million Z-Flex Surge — A New Growth Engine Takes Shape!

Zscaler, Inc. reported its fourth quarter and full fiscal year 2026 results highlighting continued robust growth and strategic positioning for the expanding cybersecurity market, particularly around AI security. The company achieved 25% year-over-year growth in annual recurring revenue (ARR), reaching $3.8 billion, driven by broad-based demand across multiple geographies and customer segments. Net new ARR grew 24% year-over-year, accelerating to 17% excluding the contribution from its recent acquisition of Red Canary. The company’s non-GAAP operating margin improved to a record 24.3%, supported by disciplined cost management and operating leverage. Free cash flow margin for the full fiscal year stood at 23%, down from 27% the prior year, partly impacted by timing of cash collections and elevated capital expenditures (CapEx) to support infrastructure expansion.