Zscaler reaffirms first quarter and fiscal 2027 guidance at investor day

Zscaler, Inc. reaffirmed its financial guidance for the first quarter and full fiscal year 2027, according to a regulatory filing on Monday. The company announced the reaffirmation in conjunction with its 2026 Investor Day held in New York City.

For the first quarter of fiscal 2027, the company expects revenue of $935 million to $939 million, representing approximately 19% year-over-year growth. Non-GAAP gross margin is expected to be approximately 80%.

Non-GAAP income from operations for the first quarter is expected to be $215 million to $217 million, representing approximately 25% to 26% year-over-year growth and a 23% operating margin. Non-GAAP net income per share is expected to be approximately $1.15 to $1.16, assuming approximately 170 million fully diluted shares outstanding and a non-GAAP tax rate of 21%.

For the full year fiscal 2027, the company expects annual recurring revenue of $4.396 billion to $4.426 billion, representing growth of approximately 16.6% to 17.4%. Revenue for the full year is expected to be approximately $3.908 billion to $3.938 billion, representing growth of 16.6% to 17.5%.

Full-year non-GAAP gross margin is expected to be approximately 80%. Non-GAAP income from operations is expected to be $924 million to $932 million, growth of approximately 21%.

Non-GAAP net income per share for the full year is expected to be $4.86 to $4.90, assuming approximately 173 million fully diluted shares outstanding and a non-GAAP tax rate of 21%. Free cash flow margin for the full year is expected to be approximately 23.0 to 23.5%.

As AI forces every enterprise to rethink their approach to security, the value of our Zero Trust architecture is becoming increasingly clear, said Jay Chaudhry, CEO, Chairman, and Founder of Zscaler, in a press release. The agentic AI era is quickly becoming the most significant opportunity in our company's history.