Zscaler Delivers Strong Q4 Performance, Embracing the Era of AI-Powered Cyber Threats
San Mateo, CA - Zscaler, a leading provider of cloud-based security solutions, has reported a strong finish to its fiscal year 2026 with a 25% increase in Annual Recurring Revenue (ARR) and a non-GAAP operating margin of 24%. The company's recent Q4 earnings conference call highlighted the significant positive trends in net new ARR growth, excluding Red Canary, which accelerated to 17% in Q4.
The results reflect increasing market adoption of Zscaler's Zero Trust platform, which has become a crucial tool for organizations to combat the growing threats created by agentic AI. According to Jay Chaudhry, Chairman and CEO of Zscaler, "AI is quickly becoming the largest tailwind we've ever seen, driving demand for our Zero Trust Everywhere data security and Security for AI solutions."
The company's customers are relying on Zscaler to both combat the threats created by agentic AI and safely deploy AI agents and models at scale. With new AI models becoming more powerful, autonomous, and dangerous from a cybersecurity perspective, organizations simply do not have enough time or resources to fix the unprecedented number of software vulnerabilities being discovered.
Over 90% of organizations had AI applications, models, and other servers exposed to the internet, while over one-third had known exploitable vulnerabilities. The threat landscape has been further complicated by the ability of new AI models to power ungoverned autonomous agents, which have already led to multiple high-profile incidents.
The recent Hugging Face incident is a stark example of this new reality, where a swarm of agents went rogue and took unauthorized actions. This has driven urgency at the highest levels, with CEOs and boards looking to Zscaler as their trusted partner to address three essential business challenges: securing their environment when vulnerabilities cannot be patched fast enough; minimizing the impact of a potential breach; and containing lateral threat movement.
Zscaler's Zero Trust Exchange makes applications, AI models, and data invisible, while its platform connects users, workloads, branches, and agents directly to the applications they need without placing them on the network. This eliminates lateral threat movement, containing the impact of a breach.
