Zscaler, Inc.ZS

Zscaler sees agentic AI era as major opportunity and enables secure deployment of AI.

““As AI forces every enterprise to rethink their approach to security, the value of our Zero Trust architecture is becoming increasingly clear,” said Jay Chaudhry, CEO, Chairman, and Founder of Zscaler. “The agentic AI era is quickly becoming the most significant opportunity in our company’s history. Our Zero Trust platform was purpose-built to solve the challenges customers face today – protecting against AI-driven threats, securing data everywhere, and enabling the secure deployment of AI – by hiding the attack surface and preventing lateral movement. Backed by a powerful customer growth flywheel, we have multiple growth engines that we believe will enable us to capitalize on AI tailwinds and drive Zscaler towards achieving our $10 billion ARR target.””

Zscaler platform secures users, devices, workloads, and AI agents for customers.

“Zscaler (NASDAQ: ZS) is the pioneer and global leader in zero trust security and the cybersecurity platform for the AI era. The world's largest businesses, critical infrastructure organizations, and government agencies rely on the Zscaler Zero Trust Exchange™ to secure their users, devices, workloads, and AI agents, protect their data, and safely adopt AI, all on one unified platform. Distributed across 200+ data centers and inspecting more than 750 billion transactions a day, Zscaler blocks billions of threats while reducing cost and complexity for the modern enterprise.”

Zscaler helps companies combat threats from agentic AI and securely deploy AI agents and models.

““AI represents one of the most significant opportunities in Zscaler's history. By connecting users, workloads, branches, and now agents directly to the applications they need without placing them on the network, we are uniquely equipped to help companie s both combat the threats created by agentic AI and securely deploy AI ag ents and models,” said Jay Chaudhry, CEO, Chairman and Founder of Zscaler. “Our continued innovation across Zero Trust SASE, Agentic SecOps, Data Security, and Security for AI is driving increased platform adoption and creating new avenues for growth, as reflected in our strong Q4 results. As AI becomes foundational to how organizations operate, we are well positioned to extend our leadership as the cybersecurity platform for the AI era.””

Zscaler states emergence of autonomous agentic workforce makes traditional perimeter security inadequate.

“The traditional model of enterprise security built around hub-and-spoke networks, firewalls and virtual private networks, or VPNs, was designed to protect a fixed perimeter. With rapid and increasing cloud adoption, workforce mobility and the emergence of an autonomous agentic workforce, traditional perimeter security fails to completely secure the modern enterprise, is prohibitively expensive and delivers poor user experience. These outdated yet widely-deployed tools are preventing enterprises from safely embracing the digital transformation that is necessary to compete today.”

Zscaler notes AI agents create new governance and data security challenges legacy tools cannot address.

“Enterprises have moved applications from the data center to the cloud, workforce mobility has dissolved the office perimeter and enterprises must securely access applications and data, wherever they are hosted, from any device, anywhere in the world. The emergence and rapid adoption of AI have accelerated this transformation, with AI agents accessing applications, AI models and data at machine speed and creating new governance and data security challenges that legacy tools were not built to address.”

Zscaler platform connects users, devices, workloads and AI agents to applications and data using zero trust principles.

“Our Zscaler Zero Trust Exchange TM security platform is a cloud-native security solution that is purpose-built to securely connect users, devices, workloads and AI agents to applications, AI models and data based on identity and business policy, rather than network location. Our platform was designed from day one on the principles of never trust and always verify. This approach reflects our consistent, pervasive application of zero trust principles, not just at the network layer, but across every transaction on our platform, based on defined permissions and business policies. Firewalls and VPNs force enterprises to trust traffic, exposing them to unnecessary risk, which is proliferating in the hyper-velocity of our AI world. Frontier AI models are discovering vulnerabilities faster and compressing the time from discovery to exploitation. Securing the AI transformation requires the same zero trust architectural principles that have guided our platform since inception, including inline inspection at scale, hiding applications from the internet and eliminating lateral threat movement.”

Zscaler enables organizations to safely deploy AI agents and models while using AI to defend against threats.

“Our Zero Trust Exchange represents a fundamentally different architectural design and approach to networking and security that allows companies to securely accelerate their digital transformation and AI initiatives. As threat actors increasingly leverage AI to develop faster, autonomous and more sophisticated attacks, we harness AI to defend against evolving threats. In addition to protecting companies from the threats created by agentic AI, we're also enabling organizations to safely deploy AI agents and models. Zscaler continuously applies AI and ML to improve and train the Zero Trust Exchange, allowing our platform to detect threats with greater precision, respond to incidents more quickly, adapt to new attack vectors and enable our customers to safely deploy AI agents and models. We believe that our ability to embed AI-driven intelligence throughout our zero trust architecture positions us to deliver the adaptive, proactive and continuously”

Zscaler platform brings security close to users, devices, workloads and AI agents across 185 countries.

“Our cloud-native, multi-tenant architecture is distributed across over 200 public data centers globally and thousands of private sites at the edge, which brings security and business policy close to users, devices, workloads and AI agents in over 185 countries and provides fast, secure and reliable access, while dramatically simplifying operations. Our platform processes over 750 billion transactions, blocks over nine billion policy violations and threats and performs over 250,000 unique security updates per day. We believe this scale creates a structural data advantage, as every transaction enriches the threat and policy intelligence that trains our AI engines, improving the security for our customers. Our customers benefit from the cloud security effect of our ever-expanding ecosystem because once a new threat is detected, it can be rapidly blocked across our entire customer base.”

Zero Trust SASE applies zero trust principles to users, applications, AI models, autonomous AI agents and other assets.

“• Zero Trust SASE delivers cloud-based networking and security services by applying our zero trust principles across the entire enterprise, including users, applications, branches, campuses, cloud, workloads, internet of things, or IoT,/operational technology, or OT, systems, AI models, autonomous AI agents and data centers based on identity and business policy, rather than on network location.”

Zscaler CEO discusses securing against threats from frontier models and compromised AI agents.

““Zscaler is ideally positioned as the cybersecurity platform for the AI era. Our differentiated Zero Trust SASE architecture, which hides applications from attackers and eliminates lateral movement, has never been more essential in securing against threats exposed by frontier models and compromised AI agents,” said Jay Chaudhry, CEO, Chairman and Founder of Zscaler. “Our results demonstrate that our approach is resonating as we attract new customers and expand with our existing customers, and we see ample runway for long-term growth.””

Zscaler announced intent to acquire Symmetry Systems to govern AI agent communication.

“• Announced the intent to acquire Symmetry Systems , which would combine Zscaler’s Zero Trust Exchange TM platform and Symmetry Systems’ access graph technology to govern AI agent communication at scale. Symmetry Systems’ access graph maps how human and non-human identities, applications, and data connect across the enterprise.”

Zscaler offers a cloud platform using Zero Trust to connect users, devices, applications, workloads and AI agents.

“Zscaler, Inc. ("Zscaler," the "Company," "we," "us," or "our") is a cloud security company that developed a platform incorporating core security functionalities needed to enable fast and secure access to cloud resources based on identity, context and an organization’s policies. Our solution is a purpose-built, multi-tenant, distributed cloud platform that implements Zero Trust principles to securely connect users, devices, applications, workloads and AI agents without relying on traditional network-based security. We deliver our solutions using a software-as-a-service ("SaaS") business model and sell subscriptions to customers to access our cloud platform, together with related support services. Our ever-evolving platform provides our customers with a flexible and scalable approach to better secure their operations, optimize user experience, eliminate complexity, reduce costs and respond to the challenges and opportunities of AI and future new technologies. We were incorporated in Delaware in September 2007 and conduct business worldwide, with presence in North America, South America, Europe and Asia. Our headquarters are in San Jose, California.”

Zscaler acquired Red Canary to accelerate innovation in Agentic AI-driven security operations.

“On August 1, 2025, we acquired all of the outstanding equity of Red Canary Inc. ("Red Canary"), a managed detection and response technology company, for total cash consideration of $ 651.4 million. The acquisition is expected to accelerate innovation in Agentic AI-driven security operations.”

Zscaler expects rising costs from increased customer use of its platform including AI agents and devices.

“As our customers expand and increase the use of our cloud platform, driven by additional applications, workloads, AI agents, and connected devices, our cost of revenue will increase due to higher bandwidth and data center expenses. Our cost of revenue may also increase as a result of higher market prices for data center equipment supporting our cloud platform. However, we expect to continue to benefit from economies of scale as our customers increase the use of our cloud platform. We intend to continue to invest additional resources in our cloud platform and our customer support organizations as we grow our business. The level and timing of investment in these areas could affect our cost of revenue in the future.”

Zscaler gross margin affected by costs to support additional AI agents, workloads and devices on its platform.

“Gross profit, or revenue less cost of revenue, and gross margin, or gross profit as a percentage of revenue, have been and will continue to be affected by various factors. These include the timing of our acquisition of new customers and our renewals of and follow-on sales to existing customers, the average sales price of our services, the mix of services offered in our solutions, including new product introductions, the data center and bandwidth costs associated with operating our cloud platform to support additional applications, workloads, AI agents, and connected devices, the extent to which we expand our customer support and cloud operations organizations and the extent to which we can increase the efficiency of our technology, infrastructure and data centers through technological improvements. Although we expect our gross profit to increase in absolute dollars and our gross margin to remain relatively consistent, our gross profit and gross margin could fluctuate from period to period depending on the interplay of the above factors.”

Zscaler success depends on monetizing non-user traffic as customers deploy more AI agents.

“Our future success also depends in part on the rate at which our current customers add additional users or services to their subscriptions, which is driven by a number of factors, including customer satisfaction with our services, customer security and networking issues and requirements, general economic conditions and customer reaction to the price per additional user or of additional services. In addition, as our customers increasingly deploy AI agents, our success will increasingly depend on our ability to monetize the increasing prevalence of non-user-based traffic. If our efforts to expand our relationships with our existing customers are not successful, our business may materially suffer.”

Zscaler is increasingly deploying AI agents that may take erroneous or misaligned actions.

“We are increasingly utilizing AI and ML capabilities in our business operations and our product offerings. As with many developing technologies, AI and ML present risks and challenges, many of which may be unknown, which could affect their further development, adoption and use and our ability to realize their anticipated benefits. The rapid evolution of AI and ML requires the application of significant financial, operational and human resources to develop, test, maintain and monitor our products and services and our internal applications, systems and processes to help ensure that AI and ML are implemented effectively and responsibly. We may not accurately forecast the required resources or effectively deploy resources when and where needed to realize the benefits of AI and ML technologies. We are increasingly deploying AI agents, which may take actions that are erroneous, irreversible or misaligned with intended business outcomes, including interacting with unauthorized data sources and external tools. We are also enabling employees across our organization to design, build and deploy software applications. This decentralization of software development activity may increase the risk of security vulnerabilities, data exposure, regulatory non-compliance and operational failures that are difficult to detect or remediate through traditional oversight mechanisms.”

Zscaler CEO states its Zero Trust platform secures AI and agentic workflows.

““We believe Zscaler is the cybersecurity platform for the AI age - our in-line Zero Trust platform is uniquely architected to secure the unprecedented speed and scale of AI and agentic workflows. Organizations racing to adopt AI are looking to us to provide the security solution they trust, and we're just scratching the surface of this massive future growth opportunity,” said Jay Chaudhry, CEO, Chairman and Founder of Zscaler. “We continue to see robust demand across all three of our growth pillars: AI Security, Zero Trust Everywhere, and Data Security, giving us a highly durable runway for long-term growth.””

Zscaler appoints EVP to lead development of Agentic AI Security Engineering.

“• Appointed Dr. Swamy Kocherlakota as EVP of Agentic AI Security Engineering to lead the development of defenses against autonomous AI threats. His leadership focuses on building advanced capabilities within the Zero Trust Exchange platform to secure agentic AI, helping ensure that autonomous agents can be governed, monitored, and secured as distinct identities.”

Zscaler selected as early adoption partner for Microsoft Entra Agent ID ecosystem.

“• Selected as an early adoption partner for the Microsoft Entra Agent ID ecosystem, integrating the Zero Trust Exchange platform to secure autonomous AI agents. This collaboration extends Zero Trust principles to non-human identities, helping to ensure that autonomous AI agents are governed with the same rigor as human users.”

Zscaler platform connects workloads including AI agents using Zero Trust principles.

“Zscaler, Inc. ("Zscaler," the "Company," "we," "us," or "our") is a cloud security company that developed a platform incorporating core security functionalities needed to enable fast and secure access to cloud resources based on identity, context and an organization’s policies. Our solution is a purpose-built, multi-tenant, distributed cloud platform that implements Zero Trust principles to securely connect users, devices, applications and workloads (including AI agents) without relying on traditional network-based security. We deliver our solutions using a software-as-a-service ("SaaS") business model and sell subscriptions to customers to access our cloud platform, together with related support services. Our ever-evolving platform provides our customers with a flexible and scalable approach to better secure their operations, optimize user experience, eliminate complexity, reduce costs and respond to the challenges and opportunities of AI and future new technologies. We were incorporated in Delaware in September 2007 and conduct business worldwide, with presence in North America, South America, Europe and Asia. Our headquarters are in San Jose, California.”

Zscaler acquired Red Canary and plans to accelerate innovations in Agentic AI-driven security operations.

“On August 1, 2025, we acquired all the equity of Red Canary Inc. ("Red Canary" ), a managed detection and response technology c ompany incorporated in the United States. With this acquisition, we plan to accelerate innovations in Agentic AI-driven security operations.”

Zscaler hired an Executive Vice President of Agentic AI Security Engineering amid senior management changes.

“of our executive officers or key employees could seriously harm our business. We have experienced, and may in the future experience, significant change in senior management, including the recent hirings of our Chief Marketing Officer and Executive Vice President, Agentic AI Security Engineering. Any significant leadership change or senior management transition involves risk, especially nearly simultaneous changes involving so many leaders and employees, and any failure to transition effectively or to retain these new leaders could hinder our strategic planning, business execution and future performance.”

Zscaler platform securely connects workloads including AI agents using Zero Trust principles.

“Zscaler, Inc. ("Zscaler," the "Company," "we," "us," or "our") is a cloud security company that developed a platform incorporating core security functionalities needed to enable fast and secure access to cloud resources based on identity, context and an organization’s policies. Our solution is a purpose-built, multi-tenant, distributed cloud platform that implements Zero Trust principles to securely connect users, devices, applications and workloads (including AI agents) without relying on traditional network-based security. We deliver our solutions using a software-as-a-service ("SaaS") business model and sell subscriptions to customers to access our cloud platform, together with related support services. Our ever-evolving platform provides our customers with a flexible and scalable approach to better secure their operations, optimize user experience, eliminate complexity, reduce costs and respond to the challenges and opportunities of AI and future new technologies. We were incorporated in Delaware in September 2007 and conduct business worldwide, with presence in North America, South America, Europe and Asia. Our headquarters are in San Jose, California.”

Zscaler acquired Red Canary to accelerate innovations in Agentic AI-driven security operations.

“On August 1, 2025, we acquired all the equity of Red Canary Inc. ("Red Canary" ), a managed detection and response (MDR) technology c ompany incorporated in the United States. With this acquisition, we plan to accelerate innovations in Agentic AI-driven security operations (SecOps).”

Zscaler Zero Trust Exchange connects and secures AI agents.

“The Zscaler Zero Trust Exchange is a cloud-native platform, which implements Zero Trust principles to securely connect users, devices, applications and workloads, including AI agents, without relying on traditional hub-and-spoke network architecture and firewall-centric security. These technologies have become a roadblock to transformation for organizations that want to compete in today’s digital world. Firewalls and virtual private networks, or VPNs, create a perimeter around the corporate network and everything inside the perimeter is implicitly trusted. This is one of the root causes of ransomware attacks. Zscaler’s Zero Trust model operates on the principle that users, workloads, devices and AI”

Zscaler platform includes solution for security for AI and agentic operations.

“Our ever-evolving platform provides our customers with a flexible and scalable approach to better secure their operations, optimize user experience, eliminate complexity, reduce costs and respond to the challenges and opportunities of AI and future new technologies. As the threat landscape evolves and companies look to further embrace AI and the cloud, our platform has evolved to focus on four core solutions: Zero Trust Everywhere, Data Security Everywhere, Security for AI and Agentic Operations.”

Zscaler extends Zero Trust principles to autonomous AI agents.

“• Zero Trust Everywhere – extends the principles of Zero Trust across all locations – branches, campuses, cloud, factories, entities, users, workloads, IoT/OT systems and autonomous AI agents.”

Zscaler describes agentic operations using AI for SecOps and ITOps efficiency.

“• Agentic Operations – refers to the integration of advanced AI technologies to empower both Security Operations, or SecOps, and IT Operations, or ITOps, teams with increased efficiency and actionable insights.”

Zscaler secures autonomous AI agents as independent entities under Zero Trust.

“Zero Trust Everywhere spans three core domains: Zero Trust Users, where users are never placed on the corporate network; Zero Trust Cloud, where workloads communicate only through the Exchange; and Zero Trust Branch, where branches, factories, warehouses, IoT/OT devices and autonomous AI agents are secured as independent entities and connected solely through policy-based access. Together, these capabilities deliver a unified Zero Trust architecture that replaces legacy firewalls, VPNs and SD-WANs with a model purpose-built for the modern enterprise.”

Zscaler secures customer workloads connecting to external AI agents.

“• Secure Workload to Internet: Our Zero Trust Cloud provides a solution for securing outbound communications from customer workloads to the internet. This capability is designed to protect workloads hosted in public clouds, private data centers or hybrid environments when they connect to external resources such as application programming interfaces, or APIs, SaaS platforms, third-party services or AI agents. Rather than trusting the underlying network, our Zero Trust model is founded on verifying the identity of the workload itself and enforcing granular access policies for any internet-bound request. To protect against cyber threats and data loss, the solution performs cloud-scale TLS inspection, which is designed to identify and block malicious attacks and prevent the unauthorized exfiltration of sensitive data from our customers' cloud workloads.”

Zscaler acquired Red Canary to offer agentic AI-driven threat intelligence and automation to customers.

“• Acquired Red Canary to redefine Security Operations with agentic AI-driven threat intelligence and automation. The combination of Zscaler’s unified Data Fabric for Security and Red Canary’s proven MDR expertise will enhance cyber risk management for customers. This unified, AI-driven Security Operations Center (SOC) will empower businesses to mitigate cyber threats faster, with precision accuracy and automated remediation.”