Zscaler (ZS) said its growth is broadening across the platform at Citi's 2026 Global TMT Conference on September 9, highlighting accelerating net new annual recurring revenue (ARR) growth, rapid adoption of its AI security suite and deepening penetration in zero-trust branching.
CEO Jay Chaudhry pointed to the company's push toward "Zero Trust Everywhere"—extending protection beyond users to branches, devices, workloads and agents—as a key differentiator. He noted the data-security portfolio is now among the most comprehensive in the market, and that the AI-security lineup has expanded from a single GenAI Security product a year ago to six fully integrated offerings.
Net new ARR growth, which Chaudhry called the more meaningful pace metric than top-line ARR, has climbed steadily: essentially flat in 2024, rising to 7% in 2025, then to 10% in the first half of fiscal 2026 before hitting 17% in Q4. Revenue over the last twelve months through Q4 reached $3.35 billion, up 25%, while gross profit margin held at 77%.
Customers with $1 million or more in ARR rose to approximately 785, with Chaudhry noting the company achieved a record number of seven-figure deals in Q4. Companies already using Zscaler's Z Flex program generated 30% higher upsell than non-users.
AI security has become a material contributor. Bookings exceeded $100 million over the past 12 months, with sequential growth of 50% in Q4 alone. About 70% of Q4 AI-security deals also included a data-security component, underscoring cross-sell momentum between the two segments.
Zero Trust Branch—a category targeting distributed office locations—grew from roughly 300 customers a year earlier to about 950, a 216% increase. Chaudhry said the required agentic-security operations infrastructure is already largely in place: approximately 70% exists within the existing Zero Trust platform, with the remaining 30% made up of agent-specific features.
Looking further ahead, he projected agent-to-human operating ratios will shift to between 50× and 100× over the next three to five years. He emphasized that frontier AI models are discovering vulnerabilities at roughly 10× the rate of older vulnerability-management tools, calling the transition from incremental to step-function attack risk a defining dynamic for enterprises.
Chaudhry pointed to a series of recent industry incidents—referencing disclosures involving Hugging Face, Anthropic, Meta and OpenAI—as evidence that enterprises are increasingly concerned about rogue AI agents and are seeking controls that ensure only authorized agents communicate with one another.
Zscaler launched its Agentic Exchange in limited availability in June 2026 at the Zenith Live event. The company, founded 19 years ago, said the sales transformation under sales leader Mike Rich began roughly two and a half years prior, with the Z Flex program rolling out less than four quarters before the conference.
The stock was trading at $165.21, up about 2% at the time of the conference data point. Zscaler maintained a net promoter score in the 80-to-85 range.
