Zscaler reported fiscal fourth-quarter GAAP revenue of $898.2 million, up 25%, and company-defined annual recurring revenue (ARR) increased 25% to $3.771 billion, but the company also announced a restructuring plan to cut about 3% of its workforce. Excluding the Red Canary acquisition, ARR was $3.630 billion, up 20%, with net new ARR growing 17%. The restructuring is expected to incur $30 million to $33 million in charges, primarily for severance and benefits. Non-GAAP operating margin improved to 24% from 22%, while operating cash flow rose to $279.3 million from $250.6 million. For fiscal 2026, non-GAAP free cash flow increased to $779.1 million from $726.7 million, though the margin declined to 23% from 27%. Fiscal 2027 guidance projects revenue growth of 16.6% to 17.5% and ARR growth of 16.6% to 17.4%, with a free-cash-flow margin of 23.0% to 23.5%. Quarterly free cash flow fell sharply to $60.8 million from $171.9 million, and the margin dropped to 7% from 24%, as capital expenditures rose to $218.5 million from $78.7 million. The company recorded a GAAP operating loss of $15.5 million, with stock-based compensation totaling $215.2 million. Hedge fund holdings increased to 52 funds from 46 in the prior quarter.
ZSCALER INC. DL-,001Same company as Zscaler Inc; reports revenue and ARR growth, improved margins, and positive guidance.
Zscaler IncReports strong revenue and ARR growth, improved margins, and positive guidance despite restructuring.
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