Zscaler has announced financial results for the third quarter of its 2026 fiscal year, which ended on April 30, 2026. Backed by unstoppable demand for Zero Trust architectures in the current AI era, the company saw its revenue rise by 25 percent to $850.5 million. Simultaneously, profitability reached a historic high.
In addition to strong growth, Zscaler announced it will further strengthen its position in the AI market through the planned acquisition of Symmetry Systems, which would combine Zscaler’s Zero Trust ExchangeTM platform and Symmetry Systems’ access graph technology to govern AI agent communication at scale. Symmetry Systems’ access graph maps how human and non-human identities, applications, and data connect across the enterprise.
Excellent growth in recurring revenue
Annual Recurring Revenue (ARR) climbed to an impressive $3.525 billion – also a 25 percent increase compared to last year.
Even excluding the recent acquisition of security specialist Red Canary, Zscaler recorded ARR growth of 21 percent. During the quarter, $166 million in net new ARR was added.
“Zscaler is ideally positioned as the cybersecurity platform for the AI era. Our differentiated Zero Trust SASE architecture, which hides applications from attackers and eliminates lateral movement, has never been more essential in securing against threats exposed by frontier models and compromised AI agents,” said Jay Chaudhry, CEO, Chairman and Founder of Zscaler. “Our results demonstrate that our approach is resonating as we attract new customers and expand with our existing customers, and we see ample runway for long-term growth.”
“We delivered strong Q3 fiscal 2026 results with record profitability. ARR grew 25%, or 21%, excluding the contribution from the Red Canary acquisition, and non-GAAP operating margin reached an all-time high of 23%,” said Kevin Rubin, chief financial officer of Zscaler. “Looking ahead, we remain focused on driving profitable growth across multiple vectors, including product innovation, go-to-market, and customer expansion.”
A series of strategic and geopolitical breakthroughs are the contributory factors to the strong financial performance of Zscaler. A notable milestone for the company was the achievement of Provisional Authorization at Impact Level 5 (IL5) from the U.S. Department of War (DoW) for the Zscaler Internet Access. This prestigious accreditation means that U.S. warfighters, national security systems, and defense agencies and mission partners may deploy Zscaler’s cloud-native architecture to secure highly sensitive, unclassified mission-critical workloads.
On a regional level, the company has established India AI & Cyber Threat Research Center in collaboration with Bharti Airtel at the India AI Impact Summit to enhance the cyber resilience of critical infrastructure. The joint initiative will produce comprehensive threat intelligence research targeting Indian infrastructure, recommend proactive cyber defense strategies, and educate organizations on evolving cyber threats confronting AI adoption. Center partners will develop new cybersecurity curriculum with local educational institutions to prepare India’s next generation of cyber professionals. Additional organizations will affiliate with the Research Center in the coming months.
Zscaler has announced deep integrations with key players in the AI industry.
The company has joined Anthropic’s ‘Project Glasswing’, gaining access to the Claude Mythos Preview model. Zscaler integrated this frontier AI model into its secure software development lifecycle (SDLC) to rapidly identify and remediate vulnerabilities within the Zero Trust Exchange platform.
Zscaler has partnered with OpenAI via DayBreak, the evolution of the Trusted Access for Cyber (TAC) program, integrating the specialized GPT 5.5-Cyber model and Codex Security into Zscaler’s internal multi-agent security architecture. This partnership enables Zscaler to embed Security-as-a-Service throughout its SDLC workflows, accelerating vulnerability detection, triaging, and patching, while further enhancing its AI Red Teaming suite and Red Canary Managed Detection and Response capabilities to counter AI-based attacks.
