Zscaler, Inc. (NASDAQ: ZS) reaffirmed its financial outlook for the first quarter and full fiscal year 2027 during its 2026 Investor Day held in New York City on October 6, 2026. The company stated that the event was intended to discuss its strategy, platform innovation, and go-to-market priorities.
For the first quarter of fiscal 2027, Zscaler expects revenue between $935 million and $939 million, representing approximately 19% year-over-year growth. The company forecasts non-GAAP gross margin of approximately 80%, non-GAAP income from operations of $215 million to $217 million, and non-GAAP net income per share of approximately $1.15 to $1.16. These figures assume approximately 170 million fully diluted shares outstanding and a non-GAAP tax rate of 21%.
For the full fiscal year 2027, the company projects annual recurring revenue (ARR) of $4.396 billion to $4.426 billion, a growth rate of approximately 16.6% to 17.4%. Total revenue is expected to reach approximately $3.908 billion to $3.938 billion, also growing by 16.6% to 17.5%. Non-GAAP income from operations is expected to be $924 million to $932 million, and non-GAAP net income per share is forecast at $4.86 to $4.90. The company anticipates a non-GAAP tax rate of 21% and approximately 173 million fully diluted shares outstanding. Additionally, Zscaler expects a free cash flow margin of approximately 23.0% to 23.5% for fiscal 2027.
Management emphasized the company's focus on the AI era, citing the Zero Trust architecture as a solution for protecting against AI-driven threats and securing data. The event featured presentations from CEO Jay Chaudhry, CFO Kevin Rubin, CPO Adam Geller, CRO Ross Tackett, and EVP Dhawal Sharma.
