Zscaler Stock Dips Post-Q4 Earnings Despite Revenue Growth and Strategic Acquisition
Zscaler's Q4 2025 earnings reveal a mixed financial landscape. Revenue climbed 21% year-over-year to $719.2 million, with annual recurring revenue hitting $3 billion—a 22% increase. Calculated billings surged 32% to $1.2 billion, while deferred revenue ROSE 30% to $2.5 billion. Non-GAAP net income improved to $146.7 million, yet GAAP net losses persisted at $17.6 million.
The cloud security firm's $675 million acquisition of Red Canary signals aggressive expansion into AI-powered security operations. Market reaction was cautious, with shares slipping 1.07% to $271.63 as investors weighed growth potential against ongoing profitability challenges. For fiscal 2025, Zscaler reported $2.7 billion in total revenue.