Zscaler CEO: AI-Powered SecOps Platform Is Surging, ‘Eliminating Legacy SIEMs’

The cybersecurity vendor is also finding massive demand for its AI security and data security offerings, Zscaler Founder and CEO Jay Chaudhry said Tuesday.

Zscaler is seeing a surge in demand for its newer product categories including security operations (SecOps) and AI security, indicating the company is well on its way to becoming a top player in segments beyond its well-known zero trust security platform, according to Zscaler Founder and CEO Jay Chaudhry.

Likewise, the company’s data security portfolio also continues to see strong growth, helping to drive Zscaler’s advancement beyond the $3 billion annual recurring revenue (ARR) milestone, Chaudhry said during the company’s quarterly call with analysts Tuesday.

[Related: Zscaler Finding A ‘Second North Star’ In Security Operations, Partner Services Push]

Chaudhry made the comments as Zscaler reported results for its fiscal fourth quarter and full fiscal year 2025, ended July 31. Fiscal fourth-quarter revenue climbed 21 percent from the same period a year earlier, to reach $719.2 million.

The revenue results came in well above the Wall Street estimate of $707.1 million. Likewise, Zscaler’s non-GAAP net income for its fiscal Q4 was 89 cents per share, compared to the analyst consensus expectations of 80 cents.

When it comes to SecOps, recent moves such as the acquisition of Red Canary will “accelerate us to become a leading player” in the segment, he said. The $675 million deal for the managed detection and response (MDR) vendor was completed Aug. 1, and notably brought advanced capabilities in agentic AI for enabling SOC (Security Operations Center) transformation, according to Chaudhry.

Zscaler is positioning itself to “deliver a truly AI-powered SOC,” capable of improving security outcomes while “reducing cost and complexity and eliminating legacy SIEMs,” Chaudhry said.

The vendor’s SecOps business has seen 85-percent growth in ARR, year-over-year, according to Chaudhry.

In AI security, Chaudhry pointed to the recent launch of AI Guard, a tool for protecting deployments of private AI applications and LLMs, “which is being tested by a significant number of large customers.”

For Zscaler, AI security is one of two product segments seeing particularly strong inbound interest from customers and partners, he said. AI security — as well as the company’s Zero Trust Branch offering — “don’t require any demand generation [investments] because there’s so much demand out there,” Chaudhry said.

Meanwhile, data security is now generating $425 million in ARR for Zscaler, the company disclosed. “Our comprehensive data security capabilities — including data discovery, classification, posture management and data loss prevention — are driving large deal wins,” Chaudhry said.

Zscaler’s stock price rose 3.3 percent in after-hours trading Thursday to $283.73 a share. The company’s total non-GAAP income widened to $146.7 million during its fiscal fourth quarter, from $115.8 million the year before.