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Jul 31, 2025
Zscaler Q4 2025 Earnings Report
Zscaler reported strong Q4 2025 results, with double-digit growth in revenue and billings, and reached over $3B in ARR despite a GAAP net loss.
Key Takeaways
Zscaler posted Q4 revenue of $719.2M, up 21% YoY, while achieving record operating margins and strong non-GAAP profitability. The company ended the quarter with over $3B in ARR, continuing its leadership in Zero Trust and AI-powered security.
Revenue grew 21% YoY to $719.2M
Calculated billings rose 32% YoY to $1.2B
Non-GAAP EPS reached $0.89, up from $0.72 YoY
Cash flow from operations was $250.6M, with $171.9M in free cash flow
Forward Guidance
For Q1 FY26, Zscaler expects revenue between $772M–$774M and non-GAAP EPS of $0.85–$0.86; full-year FY26 revenue is guided to $3.265B–$3.284B with non-GAAP EPS of $3.64–$3.68.
Positive Outlook
- FY26 revenue guidance of up to $3.284B
- Q1 FY26 revenue guidance of up to $774M
- Non-GAAP EPS for FY26 guided as high as $3.68
- ARR expected to reach nearly $3.7B
- Strong demand for Zero Trust and AI security solutions
Challenges Ahead
- GAAP net losses continue despite growth
- Rising operating expenses including R&D and G&A
- Increasing competition in AI cybersecurity
- High stock-based compensation impacts GAAP results
- Restructuring and acquisition costs weigh on margins
Historical Earnings Impact
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Avg. Return Before/After Earnings
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