Zscaler's third quarter 2026 revenue grew 25% year-over-year while achieving record operating margin.

Zscaler reported third quarter results with strong revenue growth and record profitability, raising its full-year outlook for revenue and earnings per share. However, the company lowered its full-year free cash flow margin guidance.

Key Highlights

• Revenue for the third quarter grew 25% year-over-year to $850.5 million.
• Annual Recurring Revenue (ARR) increased by 25% year-over-year to $3.53 billion, or 21% excluding the contribution from the Red Canary acquisition.
• Non-GAAP operating margin reached a record high of 23% for the quarter, compared to 22% in the prior year period.
• For the full fiscal year 2026, Zscaler raised its revenue and Non-GAAP EPS guidance but lowered its free cash flow margin outlook to a range of 22.8% to 23.3% from a prior expectation of 26.5% to 27%.