Zscaler Investor Day Takeaways: The Right Platform For The AI Era

We attended Zscaler's Investor Day in New York and came away incrementally more constructive on the company's growth opportunity ahead. Investors have been looking for a mid-term growth target to anchor to, as well as a more granular accounting of performance by business unit, and management provided both. Zscaler has built the right Zero Trust platform for the AI Era. Management is targeting over $8bn of organic ARR by FY31, with nearly $2bn of potential incremental AI upside to $10bn, a roughly 22% CAGR. ZS also announced long-term FY31 margin targets, including operating margin of 27% to 30% and FCF margin of 29% to 32%, with capex expected to be elevated through FY28 before normalizing as memory costs ease. FY26 ARR by product category included roughly $3bn for Zero Trust SASE Everywhere (Users at $2.8bn, Branch and Cloud at $250mm), $410mm for Data Security, $70mm for Security for AI, and $235mm for Agentic SecOps. The three growth engines (Branch and Cloud, Data Security, and Sec