Quarterly ResultMay 26, 2026, 04:13 PM
Zscaler Q3 Revenue +25% to $850.5M; ARR +25%
AI Summary
Zscaler announced strong third-quarter fiscal 2026 results, with revenue growing 25% year-over-year to $850.5 million and Annual Recurring Revenue (ARR) also increasing by 25% to $3,525 million. The company achieved record profitability, with non-GAAP operating margin reaching an all-time high of 23%. Zscaler also raised its full-year fiscal 2026 guidance for ARR, revenue, non-GAAP income from operations, and non-GAAP net income per share, while announcing strategic initiatives including the intent to acquire Symmetry Systems and partnerships with Anthropic and OpenAI.
Key Highlights
- Revenue grew 25% year-over-year to $850.5 million.
- Annual Recurring Revenue (ARR) increased 25% year-over-year to $3,525 million.
- Non-GAAP operating margin reached a record 23%, up from 22% a year ago.
- Non-GAAP net income per share was $1.08, compared to $0.84 in Q3 FY25.
- Free cash flow grew 14% year-over-year to $136.0 million.
- Full-year FY26 ARR guidance raised to $3.740 billion-$3.749 billion.
- Full-year FY26 revenue guidance raised to $3.3295 billion-$3.3325 billion.
- Announced intent to acquire Symmetry Systems to enhance AI agent communication security.
Price Impact
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