Zscaler (ZS) 2026 Baird Global Consumer, Technology & Services Conference summary

Platform evolution and product innovation

• Expanded zero trust platform now covers users, workloads, devices, and soon agent-to-agent and machine-to-machine communication, with new announcements expected at Zenith Live.

• Zero Trust Exchange enables one-to-one communication paths, reducing lateral movement and exposure to vulnerabilities.

• AI Protect suite includes asset management, guardrails, and red teaming, with each component at different stages of market maturity.

• Recent acquisition of Symmetry enhances agent identity and permissioning for Agentic Exchange.

• Z-Flex contract model offers customers flexibility and fixed pricing, contributing to over $1 billion in bookings last quarter.

AI and security market dynamics

• AI-driven vulnerabilities are increasing at a pace that exceeds organizations' ability to patch, driving demand for zero trust solutions.

• Organizations are rapidly deploying AI, then seeking security solutions after the fact, creating urgency for AI-specific protection.

• AI Protect suite helps identify, monitor, and secure AI assets and communications, with real-time guardrails and red teaming.

• Shift from perimeter-based to zero trust security is accelerating as traditional approaches struggle to keep up with AI risks.

• Significant inbound interest from customers due to high-profile AI vulnerabilities, seen as a tailwind for business.

Revenue model and monetization trends

• Non-seat-based pricing, including metered and consumption models, now accounts for about 30% of new ACV, driven by AI and agentic technologies.

• Monetization for agent-to-agent and machine-to-machine traffic expected to be based on tokens and consumption, with traffic volumes projected to far exceed user-based models.

• Agentic Exchange, not yet in market, is expected to represent a larger opportunity than user-based offerings.

• AI suite provides an alternative entry point for new customers, not requiring core zero trust products.