Zscaler concluded fiscal 2026 with a 25% increase in both revenue and annual recurring revenue (ARR). The company reported Q4 revenue of $898.2 million, contributing to a total annual revenue of approximately $3.35 billion. The final ARR reached $3.771 billion, while the non-GAAP operating margin for the fourth quarter hit a record 24%.
For fiscal 2027, the company forecasts revenue between $3.908 billion and $3.938 billion, reflecting growth of 16.6% to 17.5%. ARR projections for the same period are set between $4.396 billion and $4.426 billion. These figures indicate a deceleration compared to the 25% growth rate observed in the previous fiscal year.
The company announced a 3% workforce reduction to reallocate resources toward artificial intelligence initiatives. Restructuring costs associated with these layoffs are estimated between $30 million and $33 million. Management noted that the decision is a strategic shift rather than a response to financial weakness.
Organic growth metrics show that Q4 ARR increased by 20%, with net-new ARR accelerating by 17% year over year, excluding the impact of the Red Canary acquisition. The firm highlighted strong demand for AI-driven security tools, the Z-Flex consumption model, and expansion into non-seat-based pricing structures.
