Zscaler's shares experienced a drop on Wednesday.

Zscaler, a leading cybersecurity company, has released its fourth-quarter earnings, surpassing the average analyst estimates for both revenue and earnings per share. However, the company's share price has taken a hit, falling by 1.4% in response to the earnings release.

As of today, Zscaler's current share price stands at $270.68, within its 52-week range of $153.45 to $318.46. The volume of Zscaler's shares traded today reached 6,038,306, which is significantly higher than its average volume of 1,959,617.

In the fourth quarter, Zscaler's revenue grew by 21% year over year, reaching slightly over $719 million. This growth was accompanied by a 27% increase in the company's non-GAAP adjusted net income, amounting to $0.89 per share. These results exceeded the consensus for Zscaler's fourth-quarter revenue and non-GAAP earnings per share, which were slightly under $707 million and $0.80, respectively.

Looking ahead, Zscaler's guidance for annual recurring revenue (ARR) in the current fiscal year (2026) is projected to range from almost $3.68 billion to almost $3.70 billion. The revenue for the current fiscal year is forecast to be just under $3.27 billion to a bit over $3.28 billion. The non-GAAP adjusted net income for the current fiscal year is forecast at $3.64 to $3.68 per share.

Zscaler's growth projections place it among the top cybersecurity companies expected to have ARR and total revenue around 3.68 to 3.70 billion USD in 2026. The main competitors in this category include CrowdStrike, Palo Alto Networks, Fortinet, and Cloudflare. Notably, Palo Alto Networks is expected to lead with about 9.22 billion USD revenue and strong growth, followed by CrowdStrike and Zscaler showing significant growth projections.

Despite the dip in share price, Zscaler's strong fourth-quarter results and positive outlook for the current fiscal year indicate a promising future for the company in the competitive cybersecurity industry. The S&P 500 improved by 0.5% on the day while Zscaler's share price eroded by 1.4%, suggesting that the market may be reacting to broader economic factors rather than Zscaler's specific performance.