Zscaler Beat, Raised, and Jumped Double Digits While AI Agents Attack Its Customers
Article excerpt
Zscaler posted a tenth consecutive earnings beat and sent shares surging, but the real question buried inside the report is whether the AI security boom reflects new enterprise budget dollars or just rebranded spending that was already locked in. This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them. Every software company now claims to be an AI company, and the reader deserves to know whether Zscaler ( NASDAQ:ZS | ZS Price Prediction ) delivered a quarter that would look strong even without the label attached. On September 3, 2026, the cloud security company reported Q4 FY26 revenue of $898.18M, up 24.9% year over year, and non-GAAP EPS of $1.19, versus an estimated $1.09, according to CNBC. CNBC reported that shares jumped double digits on the release. CEO Jay Chaudhry framed the story around AI, saying the company is “uniquely equipped to help companies both combat the threats created by AI”. The interesting work is separating durable enterprise demand from a narrative that has attached itself to almost every security vendor this year. A beat describes a quarter that already happened. A raise puts management’s credibility behind a forecast it has to hit, which is why the guidance line is where I look first. Zscaler guided Q1 FY27 revenue to $935 million-$939 million and full-year FY27...
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Full-year FY26 revenue reached $3.35 billion, up 25.4%, which is the number most investors will anchor on when they judge whether next year’s guide feels conservative or aspirational.
