Zscaler Inc (NASDAQ:ZS) reported financial results for the third quarter of fiscal 2026 after the closing bell on Tuesday. Here’s a look at the key details from the print.
- Zscaler shares trending after earnings. What’s driving ZS stock?
Zscaler Q3 Earnings Highlights
Zscaler posted third-quarter revenue of $850.48 million, beating the consensus estimate of $835.38 million. The cybersecurity company reported third-quarter adjusted earnings of $1.08 per share, beating analyst estimates of $1.01 per share, according to Benzinga Pro.
Total revenue increased 25% year-over-year. Annual recurring revenue also grew 25% year-over-year to approximately $3.53 billion.
Zscaler generated $198 million in cash flow from operations and $136 million of free cash flow in the third quarter. The company ended the period with approximately $982.11 million in cash and cash equivalents.
“Zscaler is ideally positioned as the cybersecurity platform for the AI era. Our differentiated Zero Trust SASE architecture, which hides applications from attackers and eliminates lateral movement, has never been more essential in securing against threats exposed by frontier models and compromised AI agents,” said Jay Chaudhry, chairman and CEO of Zscaler.
What’s Next For Zscaler?
Zscaler expects fourth-quarter revenue to be in the range of $875 million to $878 million, versus estimates of $878.53 million. The company anticipates fourth-quarter adjusted earnings of $1.08 to $1.09 per share, versus estimates of $1.03 per share. The company’s soft fourth-quarter revenue guidance appears to be weighing on shares after hours.
Zscaler also raised its fiscal 2026 revenue outlook from a range of $3.31 billion to $3.32 billion to a new range of $3.330 billion to $3.333 billion, versus estimates of $3.32 billion. The company raised its full-year adjusted earnings guidance from a range of $3.99 to $4.02 per share to a new range of $4.10 to $4.11 per share, versus estimates of $4.01 per share.
Zscaler executives will further discuss the company’s quarterly results on an earnings call set for 4:30 p.m. ET.
ZS Shares Dive After The Close
ZS Price Action: Zscaler shares were down 16.85% in after-hours Tuesday, trading at $153.50 at the time of publication, according to Benzinga Pro.
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