Zscaler delivered a clear beat-and-raise, posting 25% growth, record margins, and guidance above consensus. Yet the stock dropped roughly 5% the next day, extending its around 24% decline for the year as other cybersecurity stocks reach new highs. When strong results fail to lift a stock, the market is often focused on something beyond the headline numbers.
The company closed fiscal 2026 with a strong fourth quarter, as revenue climbed 5% year over year to $898.2 million, topping the consensus estimate of $877.6 million. ARR also grew 25% to $3.77 billion, including $246 million in net new ARR. Adjusted earnings came in at $1.19 per share, while the non-GAAP operating margin reached a record 24%.
Going forward, Zscaler’s fiscal 2027 guidance came in above consensus, with revenue projected at $3.9 billion to $3.93 billion against $ 3.89 billion consensus. Adjusted EPS is expected to range from $4.86 to $4.90, compared with the analysts’ expectations of $4.58.