Zscaler, Inc.
ZSQ4 2025(ZS Q1 FY2026)Estimated5% AI
AI Revenue %
5%
AI Fair Value
$546.5M
AI Revenue (Q)
$31.4M
Total Revenue (Q)
$628.0M
Source: SEC EDGAR 10-Q Filing
Browse 10-Q filings on SEC.govAnalysis
Q1 FY2026 10-Q (quarter ended October 31, 2025) revenue was $788.1M (up 26% YoY). Goodwill increased from $417.7M to $994.5M reflecting the Red Canary acquisition (completed August 1, 2025 for ~$675M). Acquired intangible assets jumped from $47.3M to $215.3M. The filing states 'The emergence and rapid adoption of AI is revolutionizing the transformational impact of cloud adoption and mobility' and highlights 'growing AI usage' driving security demand. Red Canary adds MDR capabilities with AI-driven detection and response. Combined with existing AI products (Security for AI, Data Fabric, Breach Predictor, AI copilot features), the AI revenue contribution is growing but still not separately reported. Estimate 5.0% to reflect Red Canary's initial revenue contribution plus growing AI feature attach rates. Math: ~$39.4M estimated AI / $788.1M total = ~5.0%.
Analyzed by claude-opus-4-6
Quoted Figures
Revenue $788,112
10-Q Q1 FY2026, Condensed Consolidated Statements of Operations
The emergence and rapid adoption of AI is revolutionizing the transformational impact of cloud adoption and mobility. AI is fundamentally changing how organizations operate, creating new cybersecurity threats and IT challenges, but also the opportunity to use AI to counter cybersecurity threats and improve IT operations.
10-Q Q1 FY2026, Item 2 MD&A
Goodwill $994,463 (Oct 31, 2025) vs $417,730 (Jul 31, 2025)
10-Q Q1 FY2026, Condensed Consolidated Balance Sheet
AI Products Identified (Ring 1)
Security for AI and Agentic OperationsRed Canary (AI-driven MDR)Data Fabric for Security (Avalor)AI-powered threat detectionZDX CopilotBreach Predictor
AI-Enabled Items (Ring 2 — Not Counted)
These items use AI but are not counted in the AI revenue estimate because they primarily serve non-AI functions.
Zero Trust EverywhereData Security EverywhereZIAZPA
Confidence Tier
EstimatedNo direct AI revenue disclosure — estimated from product mix