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Zscaler set to beat Q3 revenue expectations with strong federal contracts boosting Q4 outlook

Analyst Insights
21 May 2026
Proactive Investors
View Source
Bullish
pluang ai news

Zscaler is expected to report strong fiscal Q3 results on May 26, with analysts forecasting 24.6% year-over-year growth in annual recurring revenue (ARR) to $3.51 billion. The company secured significant federal contracts, including a $122 million deal with the Department of Homeland Security and renewals with the Departments of Transportation and Labor, which are expected to boost Q4 ARR growth. Analysts see these federal deals as key catalysts, potentially helping Zscaler exceed consensus ARR expectations of $3.73 billion for Q4. Valuation remains attractive compared to peers like Palo Alto Networks and Fortinet, supporting positive investor sentiment.

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