Zscaler posted a narrower loss after revenue rose 25% in its fiscal fourth-quarter, as artificial intelligence helps drive demand for its cybersecurity offerings.

The San Jose, Calif.-based company also said it would restructure and cut 3% of its workforce as it reallocates resources to support its AI and growth initiatives.

Zscaler on Thursday reported a loss of $3.37 million, or 2 cents a share, compared with a loss of $17.6 million, or 11 cents a share, a year earlier.

Adjusted earnings were $1.19 a share. Analysts were looking for $1.09 a share, according to FactSet.

Revenue rose to $898.2 million, topping analyst expectations for nearly $877 million.

Chief Executive Jay Chaudhry said that Zscaler is well-equipped to help companies both combat threats posted by agentic AI and also securely deploy AI agents and models.

"As AI becomes foundational to how organizations operate, we are well positioned to extend our leadership as the cybersecurity platform for the AI era," he said.

Zscaler's outlook for the current quarter and fiscal year topped also Wall Street expectations.

For the current quarter, Zscaler expects adjusted per-share earnings between $1.15 and $1.16 and revenue between $935 million and $939 million. Analysts were looking for adjusted earnings of $1.08 a share and revenue of $926.8 million.

For the current fiscal year, Zscaler expects adjusted earnings per-share between $4.86 and $4.90 and for revenue to grow between 16.6% and 17.5% to between $3.91 billion and $3.94 billion. Analysts were looking for revenue of $3.89 billion and adjusted earnings of $4.58 a share.

In connection with its restructuring, Zscaler said it would incur charges of about $30 million to $33 million, consisting mostly of employee and severance benefits. The company expects to recognize the majority of the charges in the first half of fiscal 2027.

Shares of Zscaler rose 3.5% in after-hours trading to $184.26. The stock had lost nearly 21% this year through Thursday's close.