Strong cybersecurity demand pushes Zscaler revenue forecast above estimates

Driven by rising cyberattacks and rapid adoption of generative AI, businesses are boosting cybersecurity investments, with Zscaler strengthening its secure access service edge (SASE) portfolio to capitalize on heightened demand and expanding opportunities in the evolving digital security landscape

Zscaler has projected annual revenue above Wall Street expectations, fuelled by rising enterprise demand for advanced cybersecurity solutions amid the growing influence of artificial intelligence. The upbeat forecast lifted the company’s shares by 3% in extended trading on Tuesday (September 2).

The surge in cyberattacks and the widespread use of generative AI are driving businesses to bolster digital defenses, pushing cybersecurity spending to new heights. Zscaler, a key player in the secure access service edge (SASE) market, is positioning itself to capture this momentum with expanded offerings.

AI and acquisitions strengthen strategy

Earlier in August, Zscaler completed its $675 million acquisition of Red Canary, strengthening its detection and response capabilities and enhancing its competitiveness in the AI-driven security landscape. “We are rapidly expanding our AI security portfolio to address the emerging risks of AI models and applications,” said CEO Jay Chaudhry in a statement.

For fiscal 2026, the company expects revenue between $3.27 billion and $3.28 billion, outpacing analyst estimates of $3.21 billion, according to LSEG data. First-quarter revenue is projected at $772 million to $774 million, again ahead of the $750.7 million consensus.

In the fourth quarter ending July 31, Zscaler reported revenue of $719.2 million, surpassing Wall Street expectations of $706.9 million. Adjusted earnings stood at 89 cents per share, above the forecasted 80 cents.

The results underscore Zscaler’s ability to leverage AI-driven demand and expanded capabilities as enterprises intensify cybersecurity investments.