Zscaler (ZS) reported its fiscal fourth-quarter results after the market close on Thursday, and the numbers were solid. The cybersecurity company beat on both the top and bottom lines, and its guidance suggests it sees more of the same ahead.
For the quarter, Zscaler posted revenue of $898.16 million, topping the consensus estimate of $877.36 million. Adjusted earnings came in at $1.19 per share, beating the $1.08 analysts were looking for. Revenue was up 25% year-over-year, and annual recurring revenue also grew 25% to roughly $3.77 billion.
The company also showed it can generate cash. It produced $279.3 million in cash flow from operations and $60.8 million in free cash flow during the quarter, ending the period with about $928.35 million in cash and cash equivalents.
CEO Jay Chaudhry framed the moment as a big one for the company, especially around AI. "AI represents one of the most significant opportunities in Zscaler's history," he said. "By connecting users, workloads, branches, and now agents directly to the applications they need without placing them on the network, we are uniquely equipped to help companies both combat the threats created by agentic AI and securely deploy AI agents and models."
Looking ahead, Zscaler expects first-quarter revenue between $935 million and $939 million, ahead of the $927.02 million analysts had penciled in. It also sees adjusted earnings of $1.15 to $1.16 per share, versus the $1.08 consensus.
For the full fiscal 2027, the company guided for revenue of approximately $3.91 billion to $3.94 billion and adjusted earnings of $4.86 to $4.90 per share. Analysts were forecasting $3.90 billion in revenue and $4.60 in adjusted earnings, so the guidance is comfortably above expectations.
Management is scheduled to discuss the quarter on an earnings call at 4:30 p.m. ET.
Shares were up 0.97% in after-hours trading, changing hands at $179.53 at the time of publication. The stock had spiked to $196 earlier in the session before pulling back.
