Zscaler(US:ZS) Yahoo Finance·2026-03-23 22:58Core Viewpoint - Zscaler's CEO Jay Chaudhry asserts that while AI can assist in cybersecurity tasks, it cannot replace the critical infrastructure and reliability required for inline traffic inspection, positioning AI proliferation as a market growth opportunity rather than a threat [2][3][4]. Company Performance - Zscaler reported Q2 FY2026 revenue of $815.75 million, reflecting a year-over-year increase of 25.91% [5][6]. - The company's Annual Recurring Revenue (ARR) reached $3.36 billion, growing 25% year-over-year, with full-year guidance raised to $3.730 billion–$3.745 billion [5][6]. Industry Trends - Enterprise AI usage surged by 91% year-over-year across over 3,400 applications in Q2 FY2026, with data transfers to AI and machine learning applications increasing by 93% [5][6]. - The proliferation of AI agents in enterprises is expected to create a larger attack surface, necessitating enhanced security measures, which Zscaler is well-positioned to address [4][6].