Zscaler beats Q4 estimates but shares hold flat after-hours
Shares in Zscaler Inc. sagged in after-hours trading today even after the cloud security company beat Wall Street estimates on both revenue and earnings in its fiscal fourth quarter and issued fiscal 2027 earnings guidance above analyst expectations.
The stock fell 2% on the news, after gaining about 5% during the regular session ahead of the report.
For the quarter that ended on July 31, Zscaler reported adjusted earnings of $1.19 per share, up from 89 cents in the same quarter a year earlier, on revenue of $898.2 million, up 25% year-over-year. Analysts had been expecting $1.09 per share on revenue of $877 million.
Annual recurring revenue closed the year at $3.771 billion, up 25% year-over-year, with $246 million of that booked in the fourth quarter alone. Some of the growth was bought. Zscaler completed its $675 million purchase of managed detection and response provider Red Canary Inc. on Aug. 1, 2025, the opening day of its 2026 fiscal year, and that business carried $141 million of annual recurring revenue into the total. Minus Red Canary, the company’s growth rate was 20%.
