Zscaler Sees $900M TCV YTD, Expands Zero Trust with AI Integration
ZS•Zscaler reported roughly $900 million in cloud marketplace TCV year-to-date, more than double prior-year levels, while expanding its Zero Trust platform with AI agents, branch and workload integrations. Management cited sales leadership turnover, tempered new logo growth outlook, and plans to raise CapEx to high-single-digit percentage of revenue.
1. Record Cloud Marketplace Growth
Zscaler achieved approximately $900 million in total contract value from its cloud marketplace year-to-date, representing over a twofold increase compared to the same period last year. This momentum underscores growing enterprise demand for its cloud-native security offerings.
2. Zero Trust Platform AI Enhancements
The company broadened its Zero Trust architecture by integrating AI agents across branches, workloads and user access. These enhancements aim to fortify real-time threat detection and automation as organizations adopt AI-driven applications.
3. Leadership Turnover and Growth Outlook
Two sales leaders departed from the CRO’s team, prompting an internal appointment and a recruitment process for the other role. Management indicated this may cause short-term execution risks and tempered expectations for new logo ARR growth in fiscal ’27, while fully integrating Red Canary.
4. CapEx Strategy and Financial Impact
To mitigate rising memory and processor prices, Zscaler plans to advance certain infrastructure investments, pushing CapEx to a high-single-digit percentage of revenue for fiscal ’26. The firm will monitor costs and adjust pricing as needed to preserve margins.
