Cybersecurity firm Zscaler Q1 revenue beats estimates on strong AI Security platform demand
Overview
Zscaler fiscal Q1 2026 revenue grows 26% yr/yr, beating analyst expectations
Adjusted EPS for fiscal Q1 2026 beats consensus, reflecting strong operational performance
Company announced acquisitions to enhance AI security offerings
Outlook
Company expects Q2 revenue between $797 mln and $799 mln
Zscaler projects full-year revenue of $3.282 bln to $3.301 bln
Company anticipates full-year ARR of $3.698 bln to $3.718 bln
Result Drivers
ZERO TRUST AND AI SECURITY - Strong demand for Zero Trust and AI Security platform drove Q1 results, per CEO Jay Chaudhry
SPLX TECHNOLOGY INTEGRATION - Integration of SPLX technology expected to expand AI Security solutions
RECURRING REVENUE GROWTH - ARR grew 26% yr/yr, indicating increased reliance on Zscaler's security solutions
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Revenue | Beat | $788.11 mln | $773.75 mln (38 Analysts) |
Q1 Adjusted EPS | Beat | $0.96 | $0.86 (40 Analysts) |
Q1 EPS |
| -$0.07 |
|
Q1 Adjusted Net Income | Beat | $159.50 mln | $143.82 mln (36 Analysts) |
Q1 Net Income |
| -$11.62 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 37 "strong buy" or "buy", 11 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Zscaler Inc is $340.00, about 17.5% above its November 24 closing price of $280.35
The stock recently traded at 72 times the next 12-month earnings vs. a P/E of 78 three months ago
Press Release: ID:nGNX8pCpqq
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