Zscaler said at its 2026 investor day that it is targeting fiscal 2027 revenue of $3.908 billion to $3.938 billion, up 16.6% to 17.5% from the prior year, while annual recurring revenue is expected to reach $4.396 billion to $4.426 billion, a gain of 16.6% to 17.4%.
For the first quarter of fiscal 2027, the company expects revenue of $935 million to $939 million, representing about 19% year-over-year growth. It also projected non-GAAP operating income of $215 million to $217 million, up 25% to 26% from a year earlier, with an operating margin of 23%. Non-GAAP earnings per share were guided to $1.15 to $1.16.
For the full fiscal year, Zscaler said it expects non-GAAP operating income of $924 million to $932 million, an increase of about 21%. It forecast non-GAAP earnings per share of $4.86 to $4.90, and free cash flow margin of 23.0% to 23.5%.
Gross margin is expected to hold at about 80% in both the first quarter and the full year.
The company said its guidance assumes 170 million fully diluted shares for the first quarter and 173 million for the full year. As a result of these announcements, the company's shares have moved 2.65% on the market, and are now trading at a price of $201.80. Check out the company's full 8-K submission here.
