Zscaler (ZS) Citi’s 2026 Global TMT Conference summary

Year in review and key milestones

• Platform expanded significantly, with Zero Trust Everywhere as a major differentiator and comprehensive data security portfolio.

• Security for AI grew rapidly, expanding from one to six integrated products in a year, exceeding expectations.

• Sales transformation to an enterprise account focus led to improved net new ARR growth, reaching 17% in Q4 of fiscal 2026.

• Customer success reflected in high NPS scores (80-85) and strong upsell momentum.

• Launch of Agentic SecOps added a new pillar to the platform, targeting emerging security needs.

AI security and evolving customer needs

• Post-Mythos, urgency around AI security increased, with boards and CIOs now deeply involved.

• Customers seek solutions to hide exposed applications and manage risks from AI agents, with zero trust architecture providing a unique advantage.

• Enterprises are cautious but recognize the need for comprehensive, integrated security rather than point products.

• Deal sizes for AI security are currently smaller, but urgency is driving adoption and accelerating zero trust deals.

• AI security bookings exceeded $100 million in the last 12 months, with Q4 bookings up 50% sequentially.

Business model evolution and growth drivers

• Four strategic pillars: Zero Trust Everywhere, AI Security, Data Security, and Agentic SecOps.

• Zero Trust Branch deals increased from 300 to 950 customers year-over-year, disrupting traditional SD-WAN.

• Multiple landing solutions and new logo deals are expanding the platform and driving record pipeline and productivity.

• Z Flex procurement model introduced to reduce friction, increase upsell (30% higher), and enable longer, larger deals.

• 785 customers now have $1 million+ ARR, with record numbers of large deals and strong momentum into fiscal 2027.