Zscaler Hosts 2026 Investor Day, Reaffirms First Quarter and Fiscal 2027 Guidance

Zscaler continues to target $10 billion in annual recurring revenue, with management citing AI as a growth opportunity.

Rhea-AI Summary

Zscaler (Nasdaq: ZS) reaffirmed its first-quarter and full-year fiscal 2027 financial guidance while hosting its 2026 Investor Day.

For the first quarter, Zscaler expects revenue of $935 million to $939 million, approximately 19% year-over-year growth; non-GAAP operating income of $215 million to $217 million, approximately 25% to 26% growth; and non-GAAP earnings per share of approximately $1.15 to $1.16.

For fiscal 2027, the company expects annual recurring revenue (ARR) of $4.396 billion to $4.426 billion, growth of approximately 16.6% to 17.4%; revenue of approximately $3.908 billion to $3.938 billion, growth of 16.6% to 17.5%; non-GAAP operating income of $924 million to $932 million, growth of approximately 21%; and non-GAAP earnings per share of $4.86 to $4.90. Both periods carry approximately 80% non-GAAP gross margin guidance. Full-year free cash flow margin is expected at approximately 23.0% to 23.5%.

11 points · 0 major

PositiveiHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

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0 major · 0 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 revenue expected at approximately $3.908 billion to $3.938 billion, growth of 16.6% to 17.5%.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 ARR expected at $4.396 billion to $4.426 billion, growth of approximately 16.6% to 17.4%.
• Moderate point. Forward-looking: it has not happened yet and may not happen.First-quarter fiscal 2027 revenue expected at $935 million to $939 million, approximately 19% year-over-year growth.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Zscaler targets $10 billion ARR, with management citing AI opportunities and multiple growth engines.
• Minor point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 non-GAAP operating income expected at $924 million to $932 million, growth of approximately 21%.

6 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 non-GAAP earnings per share expected at $4.86 to $4.90.
• Minor point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 free cash flow margin expected at approximately 23.0% to 23.5%.
• Minor point. Forward-looking: it has not happened yet and may not happen.First-quarter non-GAAP operating income expected at $215 million to $217 million, approximately 25% to 26% year-over-year growth.
• Minor point. Forward-looking: it has not happened yet and may not happen.First-quarter fiscal 2027 non-GAAP operating margin expected at 23%.
• Minor point. Forward-looking: it has not happened yet and may not happen.First-quarter fiscal 2027 non-GAAP earnings per share expected at approximately $1.15 to $1.16.
• Minor point. Forward-looking: it has not happened yet and may not happen.Non-GAAP gross margin expected at approximately 80% for both first-quarter and full-year fiscal 2027.

Negative

• None.

Key Figures

Q1 revenue guidance: $935 million to $939 million Q1 non-GAAP operating income guidance: $215 million to $217 million FY2027 ARR guidance: $4.396 billion to $4.426 billion +2 more

Q1 revenue guidance

$935 million to $939 million

Fiscal 2027 first quarter

Q1 non-GAAP operating income guidance

$215 million to $217 million

Fiscal 2027 first quarter

FY2027 ARR guidance

$4.396 billion to $4.426 billion

Full fiscal year 2027

FY2027 non-GAAP operating income guidance

$924 million to $932 million

Full fiscal year 2027

FY2027 non-GAAP net income per share guidance

$4.86 to $4.90

Full fiscal year 2027

Key Terms

arr, non-gaap, fully diluted shares outstanding, free cash flow margin

4 terms

arr financial

"drive Zscaler towards achieving our $10 billion ARR target."

ARR, or Annual Recurring Revenue, is the predictable income a business expects to earn each year from ongoing customer subscriptions or contracts. It’s like a steady paycheck that shows the company's ability to generate consistent revenue over time, helping investors assess its stability and growth potential. ARR provides a clear picture of how well a company is performing in building long-term customer relationships.

non-gaap financial

"Non-GAAP income from operations of $215 million to $217 million"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

fully diluted shares outstanding financial

"assuming approximately 170 million fully diluted shares outstanding"

Total number of shares that would exist if every outstanding option, warrant, convertible security and other instrument that can become stock were exercised or converted; it combines current shares with all potential shares. Investors use this figure to see the true size of the ownership pie and to judge per-share metrics like earnings or value per share, because potential extra shares can dilute each existing investor’s claim much like adding more slices reduces the size of each slice of a pie.

free cash flow margin financial

"Free cash flow margin of approximately 23.0 to 23.5%"

Free cash flow margin is a measure of how much cash a company generates relative to its sales, showing the percentage of revenue that remains after covering operating expenses and investments in growth. It indicates how efficiently a company turns its sales into available cash that can be used for things like paying dividends, reducing debt, or expanding the business. A higher margin suggests better financial health and more flexibility to invest or return value to shareholders.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Presentations reinforce Zscaler’s growth plans and its position as the cybersecurity platform for the AI era

SANTA CLARA, Calif., Oct. 06, 2026 (GLOBE NEWSWIRE) -- Zscaler, Inc. (Nasdaq: ZS), the cybersecurity platform for the AI era, is hosting its 2026 Investor Day today in New York City. In conjunction with its Investor Day, Zscaler reaffirmed its financial guidance for the first quarter and full fiscal year 2027.

“As AI forces every enterprise to rethink their approach to security, the value of our Zero Trust architecture is becoming increasingly clear,” said Jay Chaudhry, CEO, Chairman, and Founder of Zscaler. “The agentic AI era is quickly becoming the most significant opportunity in our company’s history. Our Zero Trust platform was purpose-built to solve the challenges customers face today – protecting against AI-driven threats, securing data everywhere, and enabling the secure deployment of AI – by hiding the attack surface and preventing lateral movement. Backed by a powerful customer growth flywheel, we have multiple growth engines that we believe will enable us to capitalize on AI tailwinds and drive Zscaler towards achieving our $10 billion ARR target.”

At its Investor Day, Zscaler executives will discuss the company’s strategy, platform innovation, go-to-market priorities, and long-term growth drivers. Featured Zscaler executives include:

• Jay Chaudhry, CEO, Chairman, and Founder
• Kevin Rubin, Chief Financial Officer
• Adam Geller, Chief Product Officer
• Ross Tackett, Chief Revenue Officer
• Dhawal Sharma, Executive Vice President, AI & Data Security
  
  

Reaffirms First Quarter and Full year Fiscal 2027 Guidance

Zscaler reaffirmed its first quarter and full year fiscal 2027 guidance, previously provided on Sept. 3, 2026. For the first quarter of fiscal 2027, the company expects:

• Revenue of $935 million to $939 million, approximately 19% year-over-year growth.
• Non-GAAP gross margin of approximately 80%
• Non-GAAP income from operations of $215 million to $217 million, approximately 25% to 26% year-over-year growth, representing a 23% operating margin.
• Non-GAAP net income per share of approximately $1.15 to $1.16, assuming approximately 170 million fully diluted shares outstanding and a non-GAAP tax rate of 21%.

For the full year fiscal 2027, the company expects:

• ARR of $4.396 billion to $4.426 billion, growth of approximately 16.6% to 17.4%.
• Revenue of approximately $3.908 billion to $3.938 billion, growth of 16.6% to 17.5%.
• Non-GAAP gross margin of approximately 80%
• Non-GAAP income from operations of $924 million to $932 million, growth of approximately 21%.
• Non-GAAP net income per share of $4.86 to $4.90, assuming approximately 173 million fully diluted shares outstanding and a non-GAAP tax rate of 21%.
• Free cash flow margin of approximately 23.0 to 23.5%.
  
  

Guidance for non-GAAP income from operations and non-GAAP net income per share exclude, as applicable, stock-based compensation expense and related employer payroll taxes, amortization expense of acquired intangible assets and amortization of debt issuance costs. We have not reconciled our expectations of non-GAAP income from operations and non-GAAP net income per share to their most directly comparable GAAP measures because certain items are out of our control or cannot be reasonably predicted. For those reasons, we are also unable to address the probable significance of the unavailable information, the variability of which may have a significant impact on future results. Accordingly, a reconciliation for the guidance for non-GAAP income from operations and non-GAAP net income per share is not available without unreasonable effort.

Investor Day: How to Participate

The half-day event can be viewed live at https://ir.zscaler.com/events/event-details/zscaler-investor-day-2026. A replay will be available on Zscaler’s Investor Relations website shortly after the event ends.

Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties, including, but not limited to, statements regarding our ability to capture opportunities related to AI and our future financial and operating performance, including our financial outlook for the first quarter of fiscal 2027 and full year fiscal 2027. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including but not limited to: macroeconomic influences and instability, geopolitical events, operations and financial results and the economy in general; risks related to the use of AI in our platform; our ability to identify and effectively implement the necessary changes to address execution challenges; risks associated with managing our rapid growth, including fluctuations from period to period; our limited experience with new products and subscription and support introductions and the risks associated with new products and subscription and support offerings, including the discovery of software bugs; our ability to attract and retain new customers; the failure to timely develop and achieve market acceptance of new products and subscriptions as well as existing products and subscriptions and support; rapidly evolving technological developments in the market for network security products and subscription and support offerings and our ability to remain competitive; length of sales cycles; useful lives of our assets and other estimates; and general market, political, economic and business conditions.

Additional risks and uncertainties that could affect our financial results are included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” set forth from time to time in our filings and reports with the Securities and Exchange Commission ("SEC"), including our Annual Report on Form 10-K for the fiscal year ended July 31, 2026, filed on September 3, 2026, as well as future filings and reports by us, copies of which are available on our website at ir.zscaler.com and on the SEC’s website at www.sec.gov. You should not rely on these forward-looking statements, as actual outcomes and results may differ materially from those contemplated by these forward-looking statements as a result of such risks and uncertainties. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

About Zscaler
Zscaler (NASDAQ: ZS) is the pioneer and global leader in zero trust security and the cybersecurity platform for the AI era. The world's largest businesses, critical infrastructure organizations, and government agencies rely on the Zscaler Zero Trust Exchange™ to secure their users, devices, workloads, and AI agents, protect their data, and safely adopt AI, all on one unified platform. Distributed across 200+ data centers and inspecting more than 750 billion transactions a day, Zscaler blocks billions of threats while reducing cost and complexity for the modern enterprise.

Investor Relations Contacts

Kim Watkins
SVP, Investor Relations & Strategic Finance
ir@zscaler.com

Nick Gonzalez
Director, Media Relations
press@zscaler.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What revenue guidance did Zscaler reaffirm for fiscal 2027?

Zscaler reaffirmed fiscal 2027 revenue guidance of approximately $3.908 billion to $3.938 billion, representing growth of 16.6% to 17.5%. First-quarter revenue is expected at $935 million to $939 million, approximately 19% year-over-year growth. The guidance was previously provided on September 3, 2026.

What assumptions underpin Zscaler's fiscal 2027 earnings-per-share guidance?

Zscaler's full-year non-GAAP earnings-per-share guidance assumes approximately 173 million fully diluted shares and a non-GAAP tax rate of 21%. First-quarter guidance assumes approximately 170 million fully diluted shares and the same 21% non-GAAP tax rate.