Zscaler reported solid results for its fiscal fourth quarter, with revenue growing by 21% year-over-year to $719.2 million, exceeding expectations. The company’s calculated billings surged by 32%, signaling potential future revenue growth acceleration. Zscaler forecasts revenue growth of 22-23% for fiscal 2026, with new vectors like AI security driving growth.

The cybersecurity company’s focus on zero trust security has carved out a niche in the market. Zscaler is also seeing growth in newer areas like AI Security and Data Security Everywhere, surpassing $1 billion in annual recurring revenue in fiscal Q4. The company is poised for accelerated revenue growth in the new fiscal year.

Zscaler ended the quarter with $3.6 billion in cash and short-term investments, along with $1.7 billion in debt. The company completed the acquisition of Red Canary post-quarter, likely impacting its cash position. Calculated billings and deferred revenue metrics suggest revenue growth acceleration in fiscal 2026.

Management forecasts fiscal 2026 revenue between $3.265 billion and $3.284 billion, with ARR projected to be between $3.676 billion and $3.698 billion. Adjusted EPS guidance ranges from $3.64 to $3.68. Zscaler introduced Z-Flex, a flexible payment program, driving a 50% increase in flex billings in fiscal Q4.

Zscaler’s stock dipped 4% despite positive results, but the company’s strong growth vectors and conservative guidance suggest potential for mid-to-high 20% revenue growth. With a forward price-to-sales multiple of 13, the stock isn’t a bargain, but remains a solid hold. The company’s prospects in AI security and flexible payment programs could further drive growth.

Read more at Yahoo Finance: Zscaler Stock Falls Despite Strong Outlook. Is It Time to Jump Into the Stock?