Slide 1: Q4 Fiscal 2026 Shareholder Letter
Q4 Fiscal 2026 Shareholder Letter September 3, 2026
Slide 2: Forward-Looking Statements
Forward-Looking Statements Unless otherwise noted, all numbers presented will be on an adjusted, non-GAAP basis. Reconciliation of GAAP to non-GAAP financial measures is in the appendix of this shareholder letter. This shareholder letter has been prepared by Zscaler, Inc. (“Zscaler”) for information
Slide 3: From Our CEO
From Our CEO We delivered a strong finish to the fiscal year, with 25% ARR growth and a non-GAAP operating margin of 24%. We are seeing significant positive trends in net new ARR with growth excluding Red Canary accelerating to 17% in Q4. FY26 Revenue Growth Y/Y Operating Margin Free Cash Flow Margi
Slide 4: The cybersecurity platform for the AI era
The cybersecurity platform for the AI era These results reflect increasing market Over the past few months, our team has adoption of our Zero Trust platform. AI is conducted hundreds of frontier AI risk quickly becoming the largest tailwind we assessments for global enterprises to help have ever see
Slide 5: Addressing the business challenges AI presents
Addressing the business challenges AI presents This is driving urgency at the highest Because of these advantages, customers levels, and Zscaler is uniquely equipped trust us to secure their business-critical to meet the moment. CEOs and Boards environments. We are also differentiated are looking to
Slide 6: Enabling secure adoption of AI
Enabling secure adoption of AI In addition to protecting companies from Earlier this year we introduced the the threats created by agentic AI, we’re industry's most comprehensive security also enabling organizations to safely for AI solution designed for exactly that deploy AI agents and models. rea
Slide 7: Launching our new Agentic SecOps solution
Launching our new Agentic SecOps solution Next week, we are announcing the next We will be launching our new SecOps major innovation on our platform with our solutions with a webcast on September 9 new Agentic SecOps solution. Just as AI is which will be streamed on our website. increasing the threa
Slide 8: Our Security for AI portfolio is resonating with customers
Our Security for AI portfolio is resonating with customers Our Security for AI solution provides an integrated way to secure AI use at scale. This includes discovery and management of all AI assets, including shadow AI and enforcement of safe access to approved apps. It also includes real-time promp
Slide 9: Building on our leadership in Data Security
Building on our leadership in Data Security Our leadership in Data Security is a powerful tailwind for our Security for AI business. As enterprises embrace Gen AI and agentic AI, they are confronting a new wave of data exfiltration risks including data abuse and over privileged access to data. Our i
Slide 10: Continued traction across our Zero Trust SASE solution with new and existing customers
Continued traction across our Zero Trust SASE solution with new and existing customers • This customer upgraded to Zscaler Private G2K Financial Access with AI-powered App Segmentation Services for 120,000 users. Customer • With this upsell, the customer increased their ARR with us by nearly 50%. Z-
Slide 11: Zero Trust Branch emerging as a new land opportunity
Zero Trust Branch emerging as a new land opportunity Zero Trust Branch simplifies customers’ branch deployments by eliminating traditional branch firewalls, SD-WAN and MPLS networks, reducing operational complexity. It also minimizes the impact from an infected machine in a branch or a manufacturing
Slide 12: Zero Trust Cloud growth continues
Zero Trust Cloud growth continues We are seeing tremendous momentum with Zero Trust Cloud. This quarter, we extended this solution by offering a managed service through Google Cloud, which can be configured in under 10 minutes, reducing the deployment time and operational costs significantly. This e
Slide 13: Meaningful momentum in Zero Trust Everywhere
Meaningful momentum in Zero Trust Everywhere The strength we are seeing in Zero Trust Branch and in Zero Trust Cloud is translating to meaningful momentum with Zero Trust Everywhere enterprises, those that have purchased Zero Trust Users, Zero Trust Branch, and Zero Trust Cloud. We exited Q4 with mo
Slide 14: - Jay Chaudhry
To summarize, AI represents one of the most significant opportunities in Zscaler's history. Our platform was built for this moment. Zscaler has always secured interactions between every user and application, and now Zscaler secures interactions between every user, agent, and every AI model. We have
Slide 15: From Our CFO
From Our CFO We delivered strong Q4 results, with revenue and ARR both growing 25% year-over-year, net new ARR growing 24%, and non-GAAP operating margin reaching a record 24.3%. For full year fiscal 2026, revenue also grew 25%, and when combined with 23% free cash flow margin, our performance excee
Slide 16: Accelerating net new ARR growth
Accelerating net new ARR growth • ARR momentum remained strong in Q4. • We also continued to deepen Excluding the contribution from our enterprise adoption. In Q4, we closed acquisition of Red Canary, net new ARR with a record number of $1 million plus was $232 million, up 17% year-over-year, new AC
Slide 17: Strong finish to FY26
Strong finish to FY26 Q4 26 revenue growth FY26 revenue growth • Turning to revenue, Q4 revenue was • For full year fiscal 2026, revenue of $898 million, up 25% year-over-year $3.4 billion grew 25% year-over-year. and 6% sequentially, exceeding the Excluding Red Canary, revenue of high end of our gu
Slide 18: GTM momentum continues to build
GTM momentum continues to build • Turning to go-to-market, we are • To support new logo growth, we are pleased with the continued strong expanding coverage through both sales execution. In Q4, we delivered direct and partner-led motions. For double-digit sales productivity growth example, we recentl
Slide 19: Z-Flex key to GTM strategy
Z-Flex key to GTM strategy • Z-Flex remains an important part of our • In Q4, Z-Flex generated over $770 go-to-market strategy. It provides million in TCV, up more than 60% customers with multi-year quarter over quarter. commitments the flexibility to activate or swap modules without starting a • Fo
Slide 20: Z-Flex Deal Wins in Q4
Z-Flex Deal Wins in Q4 • The customer increased its ARR by nearly G2K Services 90% crossing $5M this quarter. Customer • The ARR increase was driven by expansion with existing products and adoption of new Z-Flex Upsell, products, including our Security for AI and 5-year, 8-figure deal Zero Trust Clo
Slide 21: Operating Performance Working Capital and Cash Flow
Operating Performance Working Capital and Cash Flow • Turning to operating performance, we • Turning to the balance sheet, we delivered strong profitability while ended the quarter with approximately continuing to invest in the business. Non- $3.5 billion in cash, cash equivalents, GAAP gross margin
Slide 22: Outlook
Outlook Looking ahead, I want to provide an We expect capex to remain elevated update on our expectations for capital during fiscal 2027 due to higher expenditures to support our growth. component pricing, especially memory. We’ll continue to monitor our costs, and As I shared last quarter, we are s
Slide 23: Q1 and FY27 Guidance
Q1 and FY27 Guidance1 Let me provide our outlook for Q1 and full-year fiscal 2027. As a reminder, these numbers are all on a non-GAAP basis. Q1 27 Guidance FY27 Guidance $935M - $939M $3.908B - $3.938B Revenue ~19% y/y 16.6% y/y – 17.5% y/y $4.396B - $4.426B ARR ~16.6% y/y – 17.4% y/y Gross Margin ~
Slide 24: Modeling Considerations
Modeling Considerations • For net new ARR seasonality, we expect approximately 37% of net new ARR in the first half of fiscal 2027, with 15% in Q1 fiscal 2027. • We expect revenue seasonality from Q2 to Q4 to be similar to fiscal 2026, with Q4 remaining our strongest seasonal quarter. • We expect fr
Slide 25: - Kevin Rubin
In summary, we are pleased with the results we delivered in fiscal 2026. We achieved 25% year-over- year ARR growth, record operating income and operating margin. We also saw continued momentum with Z-Flex and closed an all-time record number of $1 million-plus ARR deals. I’m excited about the subst
Slide 26: Other key business and financial metrics
Other key business and financial metrics $100K+ ARR Customers2 $1M+ ARR Customers2 17% CAGR 4,182 18% CAGR 785 4,003 748 3,886 728 3,754 698 3,494 664 3,281 3,357 619 633 3,154 584 Q1 25 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 Q3 26 Q4 26 Q1 25 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 Q3 26 Q4 26 Annual Recurring Revenu
Slide 27: Other key business and financial metrics
Other key business and financial metrics 81% 79% 80% Gross Profit & Margin Key factors • Gross margins were in- $721 line with our guidance $570 and long-term targets $481 Q4'24 Q4'25 Q4'26 Gross Profit Gross Margin Operating Profit & Margin 24% 22% 22% Key factors • Leverage in our financial model
Slide 28: Financial Appendix
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Slide 29: Explanation of Non-GAAP Financial Measures
Explanation of Non-GAAP Financial Measures In addition to our results determined in accordance with generally accepted accounting principles in the United States of America ("GAAP"), we believe the following non-GAAP measures are useful in evaluating our operating performance. We use the following n
Slide 30: Definitions of Non-GAAP Financial Measures
Definitions of Non-GAAP Financial Measures Non-GAAP Gross Profit and Non-GAAP Gross Margin. We define non-GAAP gross profit as GAAP gross profit excluding stock-based compensation expense and related employer payroll taxes, amortization expense of acquired intangible assets and restructuring and oth
Slide 31: Appendix A
Appendix A ($ in thousands, except percentages) Non-GAAP Gross Profit and Non-GAAP Gross Margin FY 26 Q4 26 Q4 25 Q4 24 GAAP gross profit $2,574,894 $689,221 $546,986 $462,663 Add: Stock-based compensation expense and 87,469 22,978 19,324 13,890 related payroll taxes (1) Amortization expense of acqu
Slide 32: Appendix A (cont.)
Appendix A (cont.) ($ in thousands, except percentages) Non-GAAP Net Income and Non-GAAP Net Income per Share, FY 26 Q4 26 Q4 25 Q4 24 Diluted GAAP net loss $(63,179) $(3,369) $(17,578) $(14,878) Add: GAAP provision for income taxes 46,040 18,273 15,675 9,774 GAAP income (loss) before income taxes (
Slide 33: Appendix A (cont.)
Appendix A (cont.) ($ in thousands, except percentages) Free Cash Flow & Margin FY 26 Q4 26 Q4 25 Q4 24 Free Cash Flow Net cash provided by operating activities $1,129,654 $279,285 $250,604 $203,557 Less: Purchases of property, equipment and other (277,304) (199,837) (60,046) (49,384) assets Capital
Slide 34: About Zscaler
About Zscaler Founded in Leading Cloud Strong growth at scale 2007 Security Platform PERFORMING BEYOND RULE-OF-40 Redefining network security, with the world’s largest in-line security cloud ~$3.8B 25% 23% annual recurring growth y/y FCF and a 100% SaaS business model. revenue2 revenue3 margin3 $120
Slide 35: The leader in secure digital transformation
The leader in secure digital transformation World’s Largest Security Cloud 50M+ ~1T Users secured across AI transactions ~11,000 customers1 processed in CY25 750B+ 500T+ Daily transactions Daily signals >20x Google searches2 powering AI/ML Pioneer And Market Leader >40% >50% Global 2000 Fortune 500
Slide 36: Glossary
Glossary Product/Solution Description One of Zscaler’s three growth pillars. Includes AI-Protect and Agentic AI-Security Operations. Leverages AI to provides solutions for IT Operations and Security Agentic Operations Operations. Includes Agentic IT Ops and Agentic SecOps. Accelerates the identifica
Slide 37: Glossary
Glossary Product/Solution Description Leverages AI-powered insights and 24/7 monitoring to resolve performance. It includes ZDX Copilot, which enables IT teams to instantly troubleshoot and optimize digital experiences through natural language ZDX Advanced Plus queries, and will leverage agents to a
Slide 38: Glossary
Glossary Zscaler Architecture Firewalls are like bridges Zscaler is like a switchboard Connects to a network, where Securely connects one-to-one based on everything is trusted, even attackers policies, not to the network ATTACK SURFACE PASSTHROUGH ARCHITECTURE NETWORK ACCESS LATERAL THREAT MOVEMENT
Slide 39: Glossary
Glossary AI Protect: AI Asset Management AI Asset Management AI Inventory AI Data Security 1 Discover AI Models, 3 Map AI overreach into Agents and Services data and close risks AI Data AI Governance Control AI Supply Responsible AI 2 Chain 4 Prioritize and mitigate and assess readiness LLM risks Wi
Slide 40: Glossary
Glossary AI Protect: Red Teaming Support broad range of AI Variety of Red Teaming Library of simulated Dev Environments tests attacks Security 5,000+ attacks Context Leakage Context Leakage Data Exfiltration Data Exfiltration RAG Poisoning RAG Poisoning Jailbreak Jailbreak Jailbreak Safety Bias Priv