Zscaler (ZS) has provided its financial outlook, projecting a 16%-17% growth rate for both Annual Recurring Revenue (ARR) and total revenue in fiscal year 2027. This forward-looking guidance is complemented by a targeted adjusted earnings per share (EPS) range of $4.10 to $4.11 for fiscal year 2026. These projections signal Zscaler’s anticipated trajectory following a strong recent performance, notably influenced by increasing demand for AI-driven solutions.
The cloud security provider’s third fiscal quarter of 2026 showcased robust operational results. CEO Jagtar Chaudhry underscored the company’s achievements, stating, “We delivered strong Q3 results. ARR grew 25% and non-GAAP operating margin hit an all-time high at 23%.” Chaudhry specifically attributed the quarter’s success to “AI-driven demand,” further commenting on the broader industry shift by adding, “AI is changing the nature of” the market, implying Zscaler’s strategic alignment with these transformations.
The forecasted 16%-17% ARR and revenue growth for fiscal 2027 indicates a measured yet consistent expansion strategy within the competitive cybersecurity landscape. The precise FY2026 EPS target of $4.10-$4.11 offers investors a clear financial benchmark against which to evaluate the company’s near-term profitability. These targets, set against the backdrop of an all-time high non-GAAP operating margin in Q3, suggest a disciplined approach to growth and efficiency.
Zscaler’s recent disclosures paint a picture of a company aiming for sustained financial health, capitalizing on its current market position and the burgeoning opportunities presented by AI integration in security solutions to meet its future objectives.
