Updated
Updated · CNBC · Sep 3
Zscaler Jumps After $898 Million Q4 Revenue Beat as FY2027 Outlook Tops Estimates
Updated
Updated · CNBC · Sep 3

Zscaler Jumps After $898 Million Q4 Revenue Beat as FY2027 Outlook Tops Estimates

3 articles · Updated · CNBC · Sep 3

Summary

  • $1.19 adjusted EPS on $898 million in fiscal Q4 revenue beat LSEG estimates of $1.09 and $877 million, sending Zscaler shares sharply higher Thursday.
  • Revenue rose 25% from a year earlier and annual recurring revenue reached $3.77 billion, as demand for tools to secure AI agents and counter more sophisticated cyberattacks accelerated.
  • Guidance also came in ahead of forecasts: Zscaler sees first-quarter revenue of $935 million to $939 million and adjusted EPS of $1.15 to $1.16, above consensus.
  • For the full year, the company projected $3.91 billion to $3.94 billion in revenue and $4.86 to $4.90 in adjusted EPS, while CEO Jay Chaudhry said its new AI-agent security platform could become a larger long-term growth driver.
  • The rally marks a reversal for a stock that had fallen 20% this year and suffered its worst day last quarter after management took a more cautious stance following two sales leadership departures.

Insights

Will Zscaler's $100 million AI security gamble be enough to save enterprise networks from autonomous agents acting at machine speed?
As autonomous AI agents become the weakest link, can Zscaler's zero-trust platform truly prevent devastating zero-click data exfiltration?
Are AI security tools a revolutionary defense, or just a temporary band-aid until language models become inherently secure by design?