Zscaler CEO Jay Chaudhry on earnings beat: A record quarter from any measurement

Summary

Zscaler CEO Jay Chaudhry defended the company's record quarter after the stock fell despite an earnings beat and upbeat guidance. He highlighted strong revenue growth, 24% non-GAAP operating margin, record million-dollar deals, all-time-high sales productivity, and a record Q4 pipeline. Chaudhry tied the outlook to AI adoption and agentic security threats, arguing Zscaler's Zero Trust Exchange and upcoming agent-native security operations expansion position it well. He said he is very bullish on fiscal 2027.

• Zscaler shares traded down after the company beat earnings and gave upbeat guidance.
• Jay Chaudhry called the quarter a record across revenue, recurring revenue growth, margin, sales productivity, and large deals.
• The CEO cited a record Q4 pipeline and strong AI-related traction.
• Agentic AI hacking incidents were framed as a rising demand driver for zero-trust security.
• Zscaler's Zero Trust Exchange is positioned to hide applications and control agent-to-agent access.
• The company plans upcoming agent-native Security Operations capabilities to cut detection/response from days or weeks to minutes.
• Chaudhry said he is very bullish on fiscal 2027 for Zscaler.