Jay Chaudhry, CEO of Zscaler (NASDAQ:ZS), announced at Citi’s TMT Conference that the company has expanded its product portfolio, notably growing its AI security offerings from one product to six. Chaudhry emphasized an improvement in net-new annual recurring revenue (ARR), detailing increases from 0% in fiscal 2024 to 17% in Q4 of fiscal 2026, and reported 785 customers generating over $1 million in ARR.
Zscaler’s AI security bookings surpassed $100 million, with a 50% sequential rise in the fourth quarter, although initial deal sizes remain small as customers evaluate products. Chaudhry highlighted that 70% of AI-security deals in Q4 included data-security products, underscoring a shift towards zero-trust deployments for reducing vulnerabilities.
Additionally, Zscaler launched Agentic SecOps, supported by its acquisition of Red Canary, aimed at integrating security operations with enhanced telemetry capabilities. The company also introduced Z Flex, a flexible purchasing structure, which led to a 30% higher upsell for participating customers during its first year.
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