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Andrei Niculescu
@andrei9868 · 2d

🔐 Zscaler $ZS caps off FY2026 with another strong quarter, reinforcing why Zero Trust remains one of the most important cybersecurity trends of the AI era.

Key highlights from the quarter:

✅ Revenue grew 25% year-over-year for FY26.

✅ Annual Recurring Revenue (ARR) reached approximately $3.8 billion, up 25% YoY.

✅ Non-GAAP operating margin came in at ~23% for FY26, with operating income growing 32% YoY.

✅ Remaining Performance Obligations (customer commitments) climbed to approximately $7.4 billion, up 27% YoY.

✅ Security for AI bookings grew more than 50% quarter-over-quarter, highlighting accelerating enterprise demand for AI security solutions.

What stands out to me is that Zscaler is no longer just a SASE or firewall replacement story.

Management is increasingly positioning the company as a core infrastructure provider for securing AI agents, AI applications, sensitive data, and enterprise workloads. The company noted growing customer adoption of its Security for AI portfolio and upcoming Agentic SecOps platform, both aimed at helping enterprises manage the new risks created by autonomous AI systems.

The investment thesis appears to be evolving from:

➡️ Secure web gateway and Zero Trust networking

to

➡️ A broader AI-era security platform spanning users, devices, applications, data, workloads, and AI agents.

With cyber threats becoming more automated and AI adoption accelerating across enterprises, Zscaler believes Zero Trust architecture is becoming a necessity rather than a choice. Management highlighted that organizations are increasingly turning to the company to secure AI deployments while limiting data exposure and lateral threat movement.

For investors, the key takeaway is that Zscaler continues to deliver healthy growth at scale while leveraging AI as a demand accelerator rather than a disruption risk. If execution continues, the company remains well positioned at the intersection of two of the most attractive secular themes in technology: cybersecurity and artificial intelligence. 🚀

#Zscaler #ZS #Cybersecurity #AI #ArtificialIntelligence #ZeroTrust #CloudSecurity #Investing #StockMarket #TechStocks

A community member's personal view, not investment advice. Community Guidelines

MS
Martin Sedláček @martinsedlacek 1d

Very interesting results in my opinion. Zscaler is no longer just a "Zero Trust company", but is increasingly profiling itself as an important player in AI security. If it can maintain a similar pace of growth while also maintaining margins, the story could still be very interesting. Which player from the cybersecurity sector is the most interesting for you?

AN
Andrei Niculescu @andrei9868 18h

I personally liked Zscaler, since it is trading at lower, more normal multiples, compared to other players in the industry such as Fortinet and Cloudflare. I am waiting to see what they present at their Investor Day on October 7.

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