Zscaler Q4 Results: Strong Growth in ARR, AI Security, and Revenue

Zscaler shares are down despite strong Q4 results and AI growth prospects. The cloud-based cybersecurity firm reported a 21.3% YoY revenue increase to $719.23 million, with ARR up 22% to $3 billion and RPO increasing 31% to $5.8 billion. Zscaler introduced Z-Flex, achieving $100 million in TCV bookings, and plans to accelerate growth through AI security, Zero Trust Everywhere, and Data Security Everywhere. Despite a strong Q4, shares are trading lower due to possibly expected more from Q1 and FY26 EPS guidance, which aligned with expectations.