Zscaler Reports Strong Q3 Results, Raises Full-Year Guidance on Revenue, ARR, and EPS

summarizeSummary

Zscaler reported strong Q3 fiscal 2026 results with revenue growth and record non-GAAP operating margin, leading to an upward revision of its full-year financial guidance for revenue, ARR, and EPS.

check_boxKey Events

• Strong Q3 Fiscal 2026 Performance

  Revenue grew 25% year-over-year to $850.5 million, and non-GAAP diluted EPS reached $1.08, beating analyst estimates. The company achieved a record non-GAAP operating margin of 23%.

• Raised Full-Year Fiscal 2026 Guidance

  Zscaler increased its full-year outlook for Annual Recurring Revenue (ARR) to $3.740B-$3.749B, total revenue to $3.3295B-$3.3325B, non-GAAP income from operations to $755M-$757M, and non-GAAP diluted EPS to $4.10-$4.11.

• Strategic Acquisitions and Partnerships

  The company confirmed its intent to acquire Symmetry Systems and announced new partnerships with Anthropic (Project Glasswing) and OpenAI (DayBreak) to enhance AI security capabilities.

• Widened GAAP Net Loss

  GAAP net loss for the quarter was $13.9 million, compared to $4.1 million in the prior year, primarily due to significant strategic investments in acquisitions and operational expansion.

auto_awesomeAnalysis

Zscaler announced strong third-quarter fiscal 2026 results, surpassing revenue and non-GAAP profitability expectations, and raised its full-year guidance for key metrics including Annual Recurring Revenue (ARR), total revenue, non-GAAP operating income, and non-GAAP diluted EPS. This positive financial performance, coupled with strategic initiatives in AI security and global expansion, indicates robust business momentum. While the company reported a widened GAAP net loss and lowered its free cash flow margin guidance, these are attributed to strategic investments and increased capital expenditures, which are common for growth-focused technology companies.