ZSStill growing like it means it
Zscaler came out swinging with third-quarter fiscal 2026 results, and the numbers say the company still has plenty of juice in the tank. Revenue climbed 25% year over year to $850.5 million, while annual recurring revenue hit $3.525 billion, also up 25%. That’s the kind of combo investors like to see: fast growth today, plus a bigger future revenue base tomorrow.
Cash isn’t just a side quest
The other nice surprise? Cash generation held up well. Operating cash flow came in at $198.0 million, and free cash flow reached $136.0 million, up 14% from a year ago. In other words, Zscaler isn’t just talking a big AI-era security game — it’s still converting a meaningful chunk of that growth into actual cash instead of just vibes.
Why you should care
Management is leaning into the idea that Zscaler is the security platform for the AI era, which is corporate-speak, sure, but also a pretty clear pitch: as businesses push more workloads into the cloud and bolt on more AI tools, they need stronger security rails. If that trend keeps holding, Zscaler’s recurring revenue machine could keep compounding.
Big picture: the quarter looks like a clean reminder that cybersecurity names don’t need to be dramatic to be interesting — sometimes steady growth, rising ARR, and solid cash flow are enough to keep Wall Street paying attention.