Zscaler, a leading cloud-based cybersecurity firm, reported strong quarterly results that sent its stock higher and reinforced its position as a key player in digital defense. The company posted significant revenue growth, expanding its customer base and unveiling new AI-powered security tools that address emerging threats in enterprise networks.
For the fourth quarter of fiscal 2025, Zscaler reported revenue exceeding $719 million, marking a 21% increase compared to the same period last year. The company’s annual recurring revenue crossed the $3 billion threshold, a milestone that reflects growing demand for its Zero Trust architecture and scalable cloud solutions.
One of the highlights of the report was the launch of Zscaler’s AI Guardrails, a new suite of tools designed to protect organizations using generative AI applications. As businesses adopt artificial intelligence across their operations, the need for secure data flow and threat prevention has become more urgent. Zscaler’s new offerings aim to fill that gap, positioning the company at the forefront of AI-integrated cybersecurity.
Operational efficiency also improved, with the company reporting its highest-ever operating margin. Free cash flow reached nearly $172 million, and non-GAAP net income rose sharply, signaling strong financial health despite ongoing investments in infrastructure and product development.
Zscaler now serves over 9,400 customers, including hundreds of large enterprises generating more than $1 million in annual revenue. Its presence among Fortune 500 and Global 2000 companies continues to grow, underscoring its influence in the corporate security landscape.
Looking ahead, Zscaler expects continued momentum, with projected revenue growth and expanding margins. The company’s leadership expressed confidence in its ability to scale operations while maintaining innovation, especially as cyber threats evolve and AI adoption accelerates.
With strong fundamentals and a clear strategic vision, Zscaler’s latest results have reassured investors and analysts alike. The company’s blend of technical excellence and market responsiveness makes it one to watch in the fast-moving world of cybersecurity.