10:59 AM EDT, 09/03/2025 (MT Newswires) -- Zscaler ( ZS ) delivered "robust" fiscal Q4 results and fiscal 2026 outlook as it continues to see strong demand across its entire product portfolio, particularly in cloud and artificial intelligence-driven solutions, Wedbush Securities said in a note Wednesday.

Analysts, including Daniel Ives, said earnings per share beat forecasts, coming in at $0.89 compared to the guidance range of $0.79 to $0.80 and the consensus estimate of $0.80. This was due to Zscaler's ( ZS ) improved cross-selling/up-selling skills, which are driving further growth as the company is now operating under the "Rule of 50."

Annual recurring revenue, or ARR, came in at $3.02 billion, up 22% year-over-year, also surpassing the company's guidance of $3 billion or more, the analsysts said, adding that growth in ARR was largely driven by rising demand for zero trust security and strong performance in new products, including AI Security, Zero Trust Everywhere, and Data Security. These new segments now contribute over $1 billion in ARR and are growing faster than the company's overall ARR.

For fiscal year 2026, the company forecasted ARR between $3.68 billion and $3.70 billion, representing a 22% to 23% year-over-year increase, driven by new product segments and including about $95 million in ARR from its recent acquisition of cybersecurity company Red Canary.

Meanwhile, total revenue is projected to be between $3.27 billion and $3.28 billion, reflecting approximately 22% to 23% year-over-year growth, including $90 million in expected revenue from Red Canary. Zscaler ( ZS ) also guided for EPS between $3.64 and $3.68.

"The company continues to focus on capitalizing with its significant opportunity with large enterprise customers with AI providing demand and product development tailwinds," the analysts added.

Wedbush Securities maintained its outperform rating and $330 price target on the stock.

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