Zscaler CEO Jay Chaudhry stated that artificial intelligence is a catalyst for growth, not a threat, to the company’s cloud security infrastructure. The firm reported 26% year-over-year revenue growth in Q4 2025, with AI-driven threat detection contributing to a 31% increase in platform utilization.
- Zscaler reported $389 million in Q4 2025 revenue, a 26% YoY increase
- AI-driven security features increased platform utilization by 31%
- Daily processing of 42 billion security events, up from 29 billion in 2024
- Net dollar retention rate reached 123% in Q4 2025
- Subscription revenue accounted for 97% of total revenue
- Stock rose 8.4% in after-hours trading post-earnings
Zscaler CEO Jay Chaudhry emphasized that AI is a transformative force in cybersecurity, positioning the company to expand its market leadership. Speaking during the Q4 2025 earnings call, Chaudhry highlighted that AI integration has enabled Zscaler’s platform to process over 42 billion daily security events, up from 29 billion in the prior year. This surge reflects a growing reliance on real-time AI analytics to identify and neutralize emerging threats across hybrid work environments. The company reported $389 million in revenue for the fourth quarter of 2025, a 26% increase compared to the same period in 2024. Subscription revenue, which accounts for 97% of total revenue, rose to $378 million, driven by new enterprise contracts and expanded AI-powered modules. Zscaler’s net dollar retention rate reached 123%, indicating strong customer expansion and loyalty despite macroeconomic headwinds. AI-driven features, including Zscaler AI Guard and Adaptive Threat Protection, contributed directly to a 31% rise in platform utilization across existing clients. These tools use machine learning to detect zero-day exploits, phishing campaigns, and insider threats with 94% accuracy, reducing mean time to respond by 40% compared to traditional systems. The company now processes over 1.2 petabytes of security data per day using AI models trained on global threat intelligence. Market analysts noted that Zscaler’s proactive AI strategy has strengthened its competitive edge against legacy firewall vendors. Investors responded positively, with the stock rising 8.4% in after-hours trading following the earnings release. The momentum reflects increasing demand for intelligent, scalable security solutions as enterprises migrate to cloud-first operations.