Zscaler CEO Says 'We've Entered An Era of Omnipresent AI' As AI Security, Zero Trust, Data Protection Cross $1 Billion In ARR

Cybersecurity company Zscaler Inc. (NASDAQ:ZS) announced during its fourth quarter results that its three strategic growth vectors, AI Security, Zero Trust Everywhere, and Data Security Everywhere, have collectively surpassed $1 billion in annual recurring revenue.

The Era of Omnipresent AI

The company’s CEO, Jay Chaudhry, opened the company’s earnings call on Tuesday by stating, “We have entered an era of omnipresent AI, which is fundamentally transforming enterprises and is leading to an explosive growth of AI ML traffic.”

According to Zscaler’s internal data, AI and machine learning transactions on the company’s cloud platform surged 3,500% year-over-year, reflecting unprecedented demand for AI-centric cybersecurity solutions, with new innovations such as agentic AI creating significant security complications.

See Also: Palo Alto Investigates Data Theft After Hackers Exploit Stolen OAuth Tokens

The company launched AI Guard and expanded its AgentIQ suite to meet emerging threats like model jailbreaking, prompt injection, and agent-to-agent communications. Chaudhry noted, “We're already the leading vendor for Zero Trust communication… agent-to-agent communication is a natural extension of our proven Zero Trust platform.”

With a total ARR of over $3 billion, Chaudhry says Zscaler is positioning itself to scale across what he calls a “large $100 billion security market.”

Earnings Beat And Guidance Raised

Zscaler released its fourth-quarter results on Tuesday, reporting $719.23 million, up 21% year-over-year, and ahead of consensus estimates at $706.91 million. Profits during the quarter stood at $0.89 per share, beating analyst estimates of $0.80.

The company expects its first-quarter revenue to be in the range of $772 million to $774 million, against estimates of $750.51 million.

Shares of Zscaler were down 0.90% on Tuesday, closing at $274.57, but are up 1.85% after hours following the company’s earnings announcement. The stock scores high on Momentum and Growth in Benzinga’s Edge Stock Rankings, with a favorable price trend in the Medium and Long Terms. Click here for deeper insights into the stock.

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