Quarterly ResultMay 26, 2026, 04:07 PM
Zscaler Q3 Revenue +25% to $850.5M; Non-GAAP Operating Margin 23%
AI Summary
Zscaler reported strong financial results for its third quarter of fiscal year 2026, 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 announced strategic initiatives including the intent to acquire Symmetry Systems, partnerships with Anthropic and OpenAI, and the launch of Project AI-Guardian, while raising its full-year fiscal 2026 guidance for ARR, revenue, non-GAAP operating income, and non-GAAP net income per share.
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 an all-time high of 23%.
- Non-GAAP net income per share was $1.08, up from $0.84 a year ago.
- Free cash flow grew 14% year-over-year to $136.0 million.
- Zscaler announced intent to acquire Symmetry Systems to enhance AI agent communication security.
- Full-year fiscal 2026 revenue guidance raised to $3.3295 billion to $3.3325 billion.
- Full-year fiscal 2026 non-GAAP EPS guidance raised to $4.10 to $4.11.
Price Impact
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