Zscaler reported Q3 FY2026 earnings, ARR hit $3.5B, growing 25%

But marketplace TCV grew much faster than overall revenue, >100% YoY.

For context, Zscaler crossed $1B in total Amazon Web Services (AWS) Marketplace sales last November.

Now they’re doing $900M across all cloud marketplaces in 9 months of the current fiscal year.

CEO Jay Chaudhry:

“This is becoming a more important route to market, as cloud marketplaces simplify procurement, align well with enterprise cloud commitments, and increasingly support larger strategic engagements.”

84% of Zscaler’s revenue already runs through partners

Zscaler disclosed that channel partners generated $2.07B in revenue over the first nine months — 84% of total.

Zscaler is deeply partner-led historically. And cloud marketplaces are the fastest-growing layer inside that partner mix.

New logo growth is the priority — and partners are the answer

Zscaler is focusing on growing new logo acquisition.

Chaudhry explained how they plan to do it: the company has more limited coverage in the lower end of enterprise, roughly 2,000 to 10,000 users

“The channel, especially the VAR channel, plays an important role in the low end of the market. So we are creating specific programs and incentives for new logo in that area.”

For large enterprises, the partner motion is global system integrators.

CEO highlighted “strong growth in bookings through our GSI partners.”

AI Protect crossed $100M in bookings within a year of launch

AI Protect is Zscaler’s suite for securing enterprise AI usage. Bookings crossed $100M in the trailing twelve months since its launch.

The partner play:

Zscaler launched Project AI-Guardian with GSI partners to extend Zero Trust to AI agents. GSIs will build specialized AI discovery and risk mitigation services on the AI Protect portfolio.

Zscaler also partners with Anthropic on Project Glasswing, and with OpenAI as part of its Daybreak program.

Takeaways for alliance leaders:

1. When marketplace TCV grows much faster than overall revenue, the channel mix is shifting. Cybersecurity is leading the marketplace adoption, but data, observability, and line-of-business software are fast following.

2. Study the partner segmentation: VARs for coverage, GSIs for major transformation, marketplaces for procurement. Each has a defined role in the growth plan

3. AI security is creating a new services attach opportunity for GSIs — implementation revenue around AI discovery and agent risk, not just resale.

Is cloud marketplace part of your GTM?