**Zscaler, Inc. (ZS) has reported significant growth in its Z-Flex offering**, generating over $770 million in total contract value (TCV) during the fourth quarter of fiscal 2026, a 60% increase from the previous quarter. For the entire fiscal year, TCV surpassed $1.7 billion, demonstrating strong customer commitment and engagement. The company’s fourth-quarter revenues rose by 24.9% year-over-year to $898.2 million, with annual recurring revenues (ARR) increasing 25% to $3.77 billion.
The success of Z-Flex is expected to provide ongoing support for Zscaler as it anticipates revenue growth of 16.6%-17.5% for fiscal 2027, despite entering a slower growth phase. Meanwhile, rivals Palo Alto Networks (PANW) and CrowdStrike (CRWD) are implementing similar platform strategies aimed at enhancing customer adoption and larger commitments, indicating a competitive landscape in cybersecurity solutions.
Currently, Zscaler’s shares have declined 24.9% year-to-date, while the Zacks Security industry has seen a 71.6% increase. Zscaler’s forward price-to-sales ratio stands at 6.96, considerably below the industry average of 17.11. Projections for fiscal 2027 and 2028 earnings show an anticipated rise of 7.1% and 16.4%, respectively.
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