ZS Zscaler (ZS) Q3 FY26 earnings call
Zscaler delivered strong Q3 FY26 results, with robust ARR growth and record operating margins, driven by increasing adoption of its Zero Trust SASE solution and AI Protect offerings. The company is positioning itself as the cybersecurity platform for the AI era, leveraging its unique architecture to address emerging threats from AI agents and frontier models. While sales leadership transitions and rising hardware costs introduce some near-term prudence in guidance, the long-term market opportunity, particularly around AI-driven security, remains substantial.
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ZS operating KPIs by quarter
| KPI | This call Apr 2026 Q3 FY26 | Jul 2026 Q4 FY26 | Change vs prior quarter |
|---|---|---|---|
| Annual recurring revenue (ARR) | $3.5BOur Q3 '26 net new ARR was $166 million, up 24%, bringing total ARR to $3.5 billion, up 25% year-over-year.Source: earnings call transcript | $3.8BTotal net new ARR was $246 million, up 24% bringing total ARR to $3.8 billion, up 25% year-over-year.Source: earnings call transcript | +8.6% |
| Annual recurring revenue (ARR) Red Canary | $127MRed Canary exited Q3 with $127 million of ARR.Source: earnings call transcript | $141MRed Canary exited Q4 with $141 million of ARR.Source: earnings call transcript | +11% |
| Customers above an annual spend threshold Over $1 million ARR | 748We closed Q3 with 748 customers generating more than $1 million of ARR and 4,003 customers exceeding $100,000 of ARR, growing 18% and 19% year-over-year, respectively.Source: earnings call transcript | 785We ended the quarter with 785 customers generating over $1 million in ARR and 4,182 customers generating more than $100,000 in ARR growing 18% and 20% year-over-year, respectively.Source: earnings call transcript | +4.9% |
| Customers above an annual spend threshold Over $100,000 ARR | 4,003We closed Q3 with 748 customers generating more than $1 million of ARR and 4,003 customers exceeding $100,000 of ARR, growing 18% and 19% year-over-year, respectively.Source: earnings call transcript | 4,182We ended the quarter with 785 customers generating over $1 million in ARR and 4,182 customers generating more than $100,000 in ARR growing 18% and 20% year-over-year, respectively.Source: earnings call transcript | +4.5% |
| Remaining performance obligation (RPO) | ~$6.5BRemaining performance obligation, or RPO, of approximately $6.5 billion grew approximately 30%, including approximately 46% classified as current RPO.Source: earnings call transcript | ~$7.4BRemaining performance obligation, or RPO, of approximately $7.4 billion grew approximately 27% with approximately 45% classified as current RPO.Source: earnings call transcript | — |
Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.
Inve summary of the company's earnings call; see how call summaries are prepared. Not investment advice.