The earnings call conveyed a strong performance across key metrics with significant growth in revenue, ARR, and adoption of new technologies like AI and Zero Trust. Despite a minor decline in gross margin and higher churn in the newly acquired Red Canary segment, the overall business momentum is positive.

Company Guidance

During the Zscaler Fourth Quarter Fiscal Year 2025 Earnings Call, the company provided an extensive range of guidance metrics and insights into its growth strategy. Revenue grew by 21% year-over-year, with an operating margin exceeding 22%, marking a quarterly record. The annual recurring revenue (ARR) increased by about 22% year-over-year, surpassing $3 billion, making Zscaler one of only two pure-play SaaS security vendors to achieve this milestone. For fiscal year 2025, the company operated at a "rule of 50," with revenue growth of 23% and a free cash flow margin of 27%. Looking ahead to fiscal 2026, Zscaler anticipates ARR between $3.676 billion and $3.698 billion, and revenue growth of approximately 22% to 23%. The company is focusing on three growth vectors: AI security, Zero Trust Everywhere, and Data Security Everywhere, which collectively surpassed $1 billion in ARR in Q4. Additionally, Zscaler introduced its Z Flex program, which generated over $100 million in TCV bookings in Q4, representing over 50% sequential growth and is expected to be a significant growth driver in fiscal 2026.

Strong Revenue Growth

Revenue grew 21% year over year, and operating margin exceeded 22%, achieving a quarterly record.

Annual Recurring Revenue (ARR) Milestone

ARR increased 22% year over year, surpassing $3 billion, making Zscaler one of only two pure-play SaaS security vendors to achieve this milestone.

Free Cash Flow and Rule of 50

For fiscal year 2025, revenue growth was 23% with a free cash flow margin of 27%, operating at the rule of 50.

Expansion of Zero Trust Everywhere

Zero Trust Everywhere enterprises grew to over 350, with a goal of securing 390 enterprises by the end of fiscal 2026.

Strong Demand for AI and Data Security Solutions

AI security solutions and data security everywhere ARR grew to approximately $425 million, with strong demand leading to large deal wins.

Zscaler (ZS) Earnings, Revenues Date & History

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ZS Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Nov 26, 2025	2026 (Q1)	0.85 / -	0.77	―	―	―
Sep 02, 2025	2025 (Q4)	0.80 / 0.89	0.88	1.14% (+0.01)
May 30, 2025	2025 (Q3)	0.75 / 0.84	0.88	-4.55% (-0.04)
Mar 05, 2025	2025 (Q2)	0.69 / 0.78	0.76	2.63% (+0.02)
Dec 02, 2024	2025 (Q1)	0.63 / 0.77	0.67	14.93% (+0.10)
Sep 03, 2024	2024 (Q4)	0.70 / 0.88	0.64	37.50% (+0.24)
May 30, 2024	2024 (Q3)	0.66 / 0.88	0.48	83.33% (+0.40)
Feb 29, 2024	2024 (Q2)	0.58 / 0.76	0.37	105.41% (+0.39)
Nov 27, 2023	2024 (Q1)	0.49 / 0.67	0.29	131.03% (+0.38)
Sep 05, 2023	2023 (Q4)	0.49 / 0.64	0.25	156.00% (+0.39)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

ZS Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Sep 02, 2025	$274.57	$270.58	-1.45%
May 30, 2025	$275.70	$293.18	+6.34%
Mar 05, 2025	$196.45	$202.16	+2.91%
Dec 02, 2024	$208.51	$198.64	-4.73%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.