“With the ongoing growth in AI workloads and the need to secure them, I expect Zero Trust cloud to continue its strong growth in fiscal 2026.”

In context

“Jay Chaudhry (Chairman and CEO): We had an outstanding Q4, and I am very pleased to share our strong growth which once again exceeded our guidance. Our revenue grew 21% year over year, and operating margin exceeded 22%, which is a quarterly record for us. We are seeing growing demand for our large and expanding platform, which provides best-in-class cyber and AI security while eliminating complexity and reducing cost. We are seeing significant customer interest in our powerful AI security solutions, including our new AI Guard and GenAI security offerings. An increasing number of enterprises are choosing us, with 40% of the global 2,000 and over 45% of the Fortune 500 companies adopting our services. Driven by strong customer demand, our annual recurring revenue, or ARR, increased about 22% year over year and surpassed $3 billion, making us one of the only two pure-play SaaS security vendors to achieve this milestone. For fiscal year 2025, our revenue growth was 23% and free cash flow margin was 27%, positioning us at the rule of 50. While many public SaaS companies strive for rule of 40 results, we have consistently exceeded the sought-after industry benchmark. Heading into fiscal 2026, we are accelerating our platform innovations across three growth factors: AI security, zero trust everywhere, and data security everywhere, which together surpassed $1 billion in ARR in Q4. Let me share more details on our innovations in these three areas starting with AI security. We have entered an era of omnipresent AI, which is fundamentally transforming enterprises and is leading to an explosive growth of AIML traffic. The scale of this transformation is truly remarkable. Our ThreatLabs report revealed that AIML transactions on our cloud increased 3500% in the past year. The adoption of AI at this breakneck pace is creating new security challenges, such as model jailbreaking, prompt injection, model poisoning, and more. The growth in AI also increases complexity and creates new cyber risks. To address these emerging security challenges, we are innovating in two primary areas. First, security for AI applications. We have delivered solutions to secure AI apps and access to those apps, whether by users or AI agents. To secure AI apps from traditional cyber and emerging intent-based attacks and to battle the new security challenges, I just referenced, we recently launched Zscaler AI Guard, which is being tested by a significant number of large customers. We are already the leading vendor for zero trust communication between users, workloads, devices, and B2B. Agent-to-agent communication is a natural extension of our proven Zero Trust platform. We're developing Zero Trust solutions to secure agent-to-agent and agent-to-application communication. As an increasing number of software vendors are introducing their own agents, enterprises are looking for a proven vendor-agnostic platform like Zscaler to secure agentic communication using standard protocols like MCP or A2A. Our second area of AI innovations is agentic, which includes AgenTeq SecOps and AgenTeq ITOps. I am pleased to see continued strong demand for our operation products, and I expect this portfolio to surpass $400 million in ARR in fiscal year 2026. In addition, we're delivering several innovations to continue driving growth in these areas. For example, for security operations, we're building an AI-powered SOC solution to simplify customers' operations, reduce alert fatigue, automatically hunt for threats, discover vulnerabilities, and predict breaches while reducing cost and complexity and eliminating legacy SIEMs. We are combining our highly differentiated data fabric with the recently acquired Red Canary's agentic AI technology to deliver a truly AI-powered SOC. During the quarter, we saw strong demand for our solutions, which drove over 85% year-over-year growth in SecOps ARR. For IT operations, we are introducing several Zscaler Experience or ZDX innovations to enable faster resolution of IT tickets. To share an example, we are introducing an AI-powered endpoint remediation solution which will further reduce resolution time of IT tickets. Our current innovations like the ZDX CoPilot are resonating with customers and drove 58% year-over-year growth in the bookings of ZDX Advanced Plus SKU in fiscal 2025. Our second growth factor is Zero Trust Everywhere, which includes Zero Trust users, Zero Trust branch, and Zero Trust cloud, and is exceeding our expectations. Two quarters ago, we shared our goal of securing 390 enterprises with Zero Trust Everywhere by the end of fiscal 2026. As of the end of fiscal 2025, we're already close to reaching this goal with over 350 Zero Trust Everywhere enterprises. Let me share an example of an enterprise that embraced Zero Trust Everywhere. In a 7-figure ACV win, an existing Zero Trust users and Zero Trust cloud enterprise purchased Zero Trust branch to secure over 120 manufacturing plants and become a Zero Trust Everywhere enterprise. Zero Trust branch enables this global 2,000 enterprise to replace legacy SD WAN firewall-based VPNs and existing OT security solutions while expecting to realize more than 60% cost savings. Customers are leaning into our vision of a café-like branch by eliminating North-South firewalls and SD WANs. Furthermore, they're deploying zero trust security inside branches, factories, and campuses while eliminating legacy point products such as network access control and East-West firewalls. With our over 350 trusted branch enterprise customers, we're just beginning to benefit from the massive opportunity to replace legacy solutions in millions of branches across a wide range of verticals including finance, insurance, services, retail, healthcare, education, and more. To give you an example, in Q4, we signed our largest ever branch deal with a leading higher education institution. They purchased our Zero Trust device segmentation to secure around 150,000 devices across more than 400 locations in a 7-figure new logo ACV deal. We are also seeing strong demand for our Zero Trust cloud, the third component of Zero Trust Everywhere, which secures workload-to-workload and workload-to-the-Internet communication and provides workload segmentation by design. This eliminates the need for VPNs, north-south, and east-west virtual firewalls, express route, and direct connects. The proliferation of AI is driving an urgency to secure the large footprint of enterprise workloads, and I believe our Zero Trust cloud is the best solution for it. We are seeing strong demand for Zero Trust cloud, which resulted in an acceleration of its ARR in Q4. To share a customer example, in a 7-figure ACV win, an existing Fortune 10 healthcare enterprise expanded their workload protection from public cloud workloads to data center workloads. This large enterprise chose Zscaler to implement zero trust security and eliminate East-West firewalls. This is our fourth workload expansion deal with this customer, highlighting the large upsell opportunity we have for Zero Trust cloud. Zero Trust Cloud enables enterprises to safely adopt agentic AI technologies that require workload communication between cloud and data centers, particularly in special retrieval augmented generation implementations. To drive faster adoption of Zero Trust cloud, we recently introduced an innovative cloud gateway solution which reduces the deployment time to under ten minutes. By simplifying connectivity for distributed workloads across hyperscalers, we are helping customers achieve zero trust at global scale, which accelerates their cloud and AI initiatives. With the ongoing growth in AI workloads and the need to secure them, I expect Zero Trust cloud to continue its strong growth in fiscal 2026. Our third growth vector, data security everywhere, is seeing strong demand as enterprises are consolidating multiple data security point products on our platform. I'm pleased to share that data security everywhere ARR grew to approximately $425 million. Our comprehensive data security capabilities, including data discovery, classification, posture management, and data loss prevention, are driving large deal wins. For instance, an existing Fortune 500 services enterprise that's also a key global system integrator partner adopted our data security solution in a 7-figure ACV deal for 350,000 users. This customer adopted isolation, email DLP, endpoint DLP, data classification, encryption, and GenAI security, enabling them to consolidate multiple point products. I'm very pleased with the pace of our platform innovations for Zero Trust Everywhere, data security everywhere, and AI security, and I expect our strong growth in these areas to continue. To accelerate adoption of our broader platform, we introduced our Z Flex program less than two quarters ago. In Q4, this program generated over $100 million in TCV bookings, representing over 50% sequential growth. Our Z Flex program is becoming the preferred motion for strategic multiyear deals as it enables seamless adoption of new product modules by our customers. To share an example, in a five-year 8-figure TCV deal, a large enterprise energy customer chose our Z Flex program to increase the number of modules adopted from 14 to 19, including Zero Trust branch for hundreds of locations. This purchase resulted in over a 100% increase in ARR with us. Customer interest in Z Flex continues to grow, and I expect it to be a meaningful growth driver in fiscal 2026. In conclusion, our expanding platform and a stronger go-to-market engine position us well to benefit from the tailwinds of Zero Trust and AI security. With the accelerating pace of Zero Trust and AI innovation, we're still in the early innings of disrupting a large $100 billion security market. Now I'd like to turn over the call to Kevin for our financial results.”