Zscaler (ZS) · Software
Zscaler Q4 FY2026 earnings: summary, key numbers & outlook
Results filed 3 Sep 2026 · Quarter ended 31 Jul 2026
Press release ↗Investor relations ↗
Summaries and transcripts are machine-generated and can contain errors.
In brief
Zscaler grew Q4 FY26 revenue 25% year over year to $898.2 million and ARR 25% to $3,771 million, with non-GAAP income from operations of $218.4 million, a record 24% of revenue.
Zscaler reported fourth-quarter revenue of $898.2 million, up 25% from a year ago, and annual recurring revenue (ARR) of $3,771 million, also up 25%. The Red Canary acquisition contributed $141 million of ARR; without it, ARR grew 20%. Non-GAAP operating margin hit a record 24%. GAAP results were still a net loss of $3.4 million, and free cash flow fell to $60.8 million as capital spending rose.
For fiscal 2027, management expects revenue of $3.908 billion to $3.938 billion and ARR of $4.396 billion to $4.426 billion, growth of roughly 17%. First-quarter revenue is guided to about 19% growth. The tension is deceleration: growth slows as the Red Canary boost laps, while heavy capital spending weighs on free cash flow, guided to a margin of 23.0 to 23.5%.
Key numbers
- Q4 revenue · GAAP
- $898.2 million
- Q4 non-GAAP income from operations · non-GAAP
- $218.4 million
- Q4 non-GAAP operating margin · non-GAAP
- 24%
- Q4 GAAP net loss · GAAP
- $3.4 million
- Q4 GAAP net loss per share, diluted · GAAP
- $0.02
- Q4 non-GAAP net income per share · non-GAAP
- $1.19
- Q4 non-GAAP gross margin · non-GAAP
- 80%
- Q4 cash provided by operations · GAAP
- $279.3 million
up 25% year over year
compared to $158.9 million in the fourth quarter of fiscal 2025
compared to 22% in the fourth quarter of fiscal 2025
compared to $17.6 million in the fourth quarter of fiscal 2025
compared to $0.11 in the fourth quarter of fiscal 2025
compared to $0.89 in the fourth quarter of fiscal 2025
compared to 79% in the fourth quarter of fiscal 2025
compared to $250.6 million in the fourth quarter of fiscal 2025
| Segment or metric | Value | Change |
|---|---|---|
| ARR | $3,771 million | up 25% year over year |
| Net new ARR | $246 million | grew 24% |
| ARR excluding Red Canary | $3,630 million | up 20% |
| Deferred revenue | $2,926 million | up 19% year over year |
Where each number comes from
- Q4 revenue: “Revenue: Grew 25% year over year to $898.2 million.”
- Q4 non-GAAP income from operations: “Non-GAAP income from operations was $218.4 million, or a record 24% of revenue, compared to $158.9 million, or 22% of revenue, in the fourth quarter of fiscal 2025.”
- Q4 non-GAAP operating margin: “Non-GAAP income from operations was $218.4 million, or a record 24% of revenue, compared to $158.9 million, or 22% of revenue, in the fourth quarter of fiscal 2025.”
- Q4 GAAP net loss: “GAAP net loss was $3.4 million, compared to $17.6 million in the fourth quarter of fiscal 2025.”
- Q4 GAAP net loss per share, diluted: “GAAP net loss per share, diluted, was $0.02, compared to $0.11 in the fourth quarter of fiscal 2025.”
- Q4 non-GAAP net income per share: “Non-GAAP net income per share was $1.19, compared to $0.89 in the fourth quarter of fiscal 2025.”
- Q4 non-GAAP gross margin: “GAAP gross margin | 77% | 76% | 77% | 77% Non-GAAP gross margin | 80% | 79% | 80% | 80%”
- Q4 cash provided by operations: “Cash provided by operations was $279.3 million, or 31% of revenue, compared to $250.6 million, or 35% of revenue, in the fourth quarter of fiscal 2025.”
- ARR: “ARR: Grew 25% year over year to $3,771 million, of which $246 million was net new ARR during the fourth quarter of fiscal 2026.”
- Net new ARR: “ARR: Grew 25% year over year to $3,771 million, of which $246 million was net new ARR during the fourth quarter of fiscal 2026.”
- ARR excluding Red Canary: “Excluding the acquisition of Red Canary, which contributed ARR of $141 million, ARR grew 20% to $3,630 million and net new ARR grew 17%.”
- Deferred revenue: “Deferred revenue: Grew 19% year-over-year to $2,926 million as of July 31, 2026.”
Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.
| From the filing | Q4 FY2026 | vs year ago | vs last quarter |
|---|---|---|---|
| Revenue | $898.2M | +24.9% | +5.6% |
| Operating income | -$15.5M | +52.0% | +47.7% |
| Net income | -$3.4M | +80.8% | +75.7% |
| Free cash flow | $79.4M | −58.3% | −48.9% |
| Gross margin | 76.7% | +0.6 pts | −0.6 pts |
| Operating margin | -1.7% | +2.8 pts | +1.8 pts |
Calculated by code from XBRL, not by the model.
Guidance check
| Metric | Outlook given with Q3 FY2026 | Reported | Result |
|---|---|---|---|
| Revenue | $875 million to $878 million | $898.2M | above the range |
| Gross margin (non-GAAP) | approximately 80% | 80.0% | see outlook |
| EPS (non-GAAP) | $1.08 to $1.09 | $1.19 | above the range |
Compared with the company's own guidance, not analyst estimates, and only where the outlook and the reported figure are the same measure on the same basis. Ranges are worked out by code from the company's wording. How this works.
Outlook
| Metric | Period | Outlook |
|---|---|---|
| Revenue | first quarter of fiscal 2027 | $935 million to $939 million |
| Non-GAAP gross margin | first quarter of fiscal 2027 | approximately 80% |
| Non-GAAP income from operations | first quarter of fiscal 2027 | $215 million to $217 million |
| Non-GAAP net income per share | first quarter of fiscal 2027 | $1.15 to $1.16 |
| ARR | fiscal 2027 | $4.396 billion to $4.426 billion |
| Revenue | fiscal 2027 | $3.908 billion to $3.938 billion |
| Non-GAAP gross margin | fiscal 2027 | approximately 80% |
| Non-GAAP income from operations | fiscal 2027 | $924 million to $932 million |
| Non-GAAP net income per share | fiscal 2027 | $4.86 to $4.90 |
| Free cash flow margin | fiscal 2027 | approximately 23.0 to 23.5% |
Key takeaways
Revenue and ARR both grew 25%
Q4 revenue was $898.2 million and ARR reached $3,771 million, each up 25% year over year. Excluding Red Canary, ARR grew 20% to $3,630 million.
Red Canary flatters growth rates
Red Canary contributed ARR of $141 million. Excluding it, net new ARR grew 17% versus 24% reported.
Non-GAAP operating margin hit a record 24%
Non-GAAP income from operations was $218.4 million, versus $158.9 million, or 22% of revenue, a year earlier.
Free cash flow fell on capital spending
Free cash flow was $60.8 million, or 7% of revenue, versus $171.9 million, or 24%. Capex and internal use software was $218.5 million versus $78.7 million.
Fiscal 2027 guidance implies slower growth
Revenue guidance of $3.908 billion to $3.938 billion implies growth of 16.6% to 17.5%, down from 25%. First-quarter revenue growth is about 19%.
Charts
Fourth quarter worked out from the annual figure.
Data
| Q1 FY25 | $628.0M |
| Q2 FY25 | $647.9M |
| Q3 FY25 | $678.0M |
| Q4 FY25 | $719.2M * |
| Q1 FY26 | $788.1M |
| Q2 FY26 | $815.8M |
| Q3 FY26 | $850.5M |
| Q4 FY26 | $898.2M * |
Data
| Q1 FY25 | -$0.08 |
| Q2 FY25 | -$0.05 |
| Q3 FY25 | -$0.03 |
| Q1 FY26 | -$0.07 |
| Q2 FY26 | -$0.21 |
| Q3 FY26 | -$0.09 |
Fourth-quarter EPS appears once the press release is read; filings report it only for the full year.
Data
| Q1 FY25 | -4.9% |
| Q2 FY25 | -6.2% |
| Q3 FY25 | -3.7% |
| Q4 FY25 | -4.5% |
| Q1 FY26 | -4.6% |
| Q2 FY26 | -6.3% |
| Q3 FY26 | -3.5% |
| Q4 FY26 | -1.7% |
Data
| Q1 FY25 | $314.3M |
| Q2 FY25 | $164.4M |
| Q3 FY25 | $138.9M |
| Q4 FY25 | $190.6M |
| Q1 FY26 | $431.0M |
| Q2 FY26 | $186.3M |
| Q3 FY26 | $155.6M |
| Q4 FY26 | $79.4M |
Operating cash flow minus capital expenditure, from cash flow statements.
Questions
How did Zscaler perform in Q4 fiscal 2026?
Revenue grew 25% year over year to $898.2 million and ARR grew 25% to $3,771 million. Non-GAAP income from operations was $218.4 million, a record 24% of revenue, while the GAAP net loss was $3.4 million.
What is Zscaler's fiscal 2027 guidance?
Zscaler expects revenue of $3.908 billion to $3.938 billion, ARR of $4.396 billion to $4.426 billion, and non-GAAP net income per share of $4.86 to $4.90. It also expects a free cash flow margin of approximately 23.0 to 23.5%.
How much did the Red Canary acquisition contribute?
Red Canary contributed ARR of $141 million. Excluding it, ARR grew 20% to $3,630 million and net new ARR grew 17%.
Why did free cash flow decline in Q4?
Free cash flow was $60.8 million, versus $171.9 million a year earlier. The release attributes this to capex and internal use software of $218.5 million, versus $78.7 million.
What is the outlook for the first quarter of fiscal 2027?
Zscaler expects revenue of $935 million to $939 million, about 19% growth, and non-GAAP income from operations of $215 million to $217 million. Non-GAAP net income per share is expected at about $1.15 to $1.16.
Documents
SEC filing