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Zscaler reported Q4 FY2026 revenue of $898.2 million, above the consensus of $877.1 million and up from $719.2 million a year earlier. Adjusted earnings per share were $1.19, above the consensus of $1.09. The company reported a diluted loss per share of −$0.02, compared with −$0.11 a year earlier.
Zscaler’s gross margin rose to 76.7% from 76.1%, while its operating margin was −1.72%, compared with −4.48% a year earlier. Free cash flow fell to $60.8 million from $171.9 million.
For the full fiscal year, Zscaler’s filing attributed revenue growth primarily to more users and additional subscription sales to existing customers, with new customers contributing the remainder. The filing said the company had approximately 11,000 customers as of July 31, 2026, compared with 9,400 a year earlier.
| Q4 FY2026 | Q4 FY2025 | Change | |
|---|---|---|---|
| Revenue | $898.2 million | $719.2 million | 24.9% |
| Diluted EPS | −$0.02 | −$0.11 | — |
| Gross margin | 76.7% | 76.1% | 0.7 percentage points |
| Operating margin | −1.72% | −4.48% | 2.8 percentage points |
| Free cash flow | $60.8 million | $171.9 million | −64.7% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $1.19 | $1.09 | Beat by 9.17% |
| Revenue | $898.2 million | $877.1 million | Beat by 2.40% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
In its annual filing, Zscaler said it believes organizations’ moves to the cloud and adoption of AI will increase demand for its cloud platform. The company said acquiring customers, particularly large enterprises, is an indicator of its market penetration and future business opportunities.
Zscaler said it recognizes subscription revenue over the terms of contracts, so changes in new sales or renewals may not immediately appear in revenue. The company also said expanding use of its platform can raise bandwidth and data center costs, although it expects to benefit from economies of scale.
The filing said Zscaler plans to continue investing in its sales force, brand awareness and channel partnerships, as well as its cloud platform and customer support.
Guidance
In its filing, Zscaler said it expects gross profit to increase in absolute dollars and gross margin to remain relatively consistent, although both could fluctuate from period to period.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| Tax rate, non-GAAP | FY2027 | 21.0% | — | New |
| EPS, non-GAAP | FY2027 | $4.86–$4.90 | — | New |
| Operating income, non-GAAP | FY2027 | $924.0 million–$932.0 million | — | New |
| Gross margin, non-GAAP | FY2027 | 80.0% | — | New |
| Revenue | FY2027 | $3.9 billion–$3.9 billion | — | New |
| Tax rate, non-GAAP | Q1 FY2027 | 21.0% | — | New |
| EPS, non-GAAP | Q1 FY2027 | $1.15–$1.16 | — | New |
| Operating margin, non-GAAP | Q1 FY2027 | 23.0% | — | New |
| Operating income, non-GAAP | Q1 FY2027 | $215.0 million–$217.0 million | — | New |
| Gross margin, non-GAAP | Q1 FY2027 | 80.0% | — | New |
| Revenue | Q1 FY2027 | $935.0 million–$939.0 million | — | New |