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Zscaler (ZS)
NASDAQ:ZS
Earnings Data
Report Date
May 28, 2026After Close (Confirmed)
Period Ending
2026 (Q3)Consensus EPS Forecast
1.01Last Year’s EPS
0.84Same Quarter Last Year
Strong Buy
Based on 33 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call featured strong top-line and ARR growth, robust large-deal momentum, improved sales productivity, record pipeline conversion and raised guidance — all signaling durable demand, especially around AI Security, Zero Trust Everywhere and Data Security. Key positives include strong revenue/ARR beats, healthy cash balance and improved operating leverage. Near-term risks center on integration and elevated churn from the Red Canary acquisition, a modest QoQ decline in FCF margin, slight gross margin compression, and potential supply-cost pressures. Overall the quantitative and qualitative positives substantially outweigh the highlighted, manageable challenges.Company Guidance
Strong ARR and Net New ARR Growth
Total ARR reached $3.4B, up 25% year-over-year. Q2 net new ARR was $156M (up 19% YoY); excluding Red Canary net new ARR was $139M (up 7% YoY). Full-year ARR guidance raised to $3.730B–$3.745B (~24% YoY).
Revenue Outperformance
Q2 revenue was $816M, up 26% year-over-year and +4% sequentially, exceeding the high end of guidance. FY revenue guidance raised to $3.309B–$3.322B (approx. 23.8%–24.3% YoY).
Cash Generation and Balance Sheet Strength
Ended quarter with $3.5B in cash, cash equivalents and short-term investments and $1.7B of debt. Q2 operating cash flow was $204M (up 14% YoY). Company reported Rule of 62 performance in H1 (26% revenue growth + 36% free cash flow margin for the first half).
Profitability and Margin Leverage
Non-GAAP operating income grew to $181M (up $41M or 29% YoY) and non-GAAP operating margin improved to 22.2% (up 50 basis points YoY). Non-GAAP gross margin remained ~80.2%.
Sales Productivity, Large Deals and Customer Traction
Recorded a Q2 record number of $1M+ ARR new ACV deals; 728 customers >$1M ARR (up 18% YoY) and 3,886 customers >$100k ARR (up 18% YoY). Americas revenue grew ~31% YoY; EMEA ~18%; APJ ~23%.
Z-Flex Momentum
Z-Flex generated >$290M in TCV in Q2 (up >65% QoQ); cumulative Z-Flex TCV since launch ~ $650M at an average 4-year term. Z-Flex is driving upsell, shorter cycles and greater visibility.
AI and Agentic Security Traction
Positioned as a security platform for the AI era: processed nearly 1 trillion AI transactions in calendar 2025 and >500B transactions daily across the Exchange. Notable AI Security wins include an 8-figure Fortune 500 semiconductor new logo and multiple large upsells; ZDX Advanced Plus bookings crossed $100M over the last 12 months (growing >80% YoY).
Zero Trust Everywhere and Data Security Momentum
Zero Trust Everywhere customers grew from ~130 a year ago to >550 now. Example wins: a Global 2000 financial services Zero Trust Cloud deal increased ARR to >$5M (up >40%); a Global 2000 financial services data-security upsell increased that customer's ARR nearly 5x.
Improved RPO and Pipeline Conversion
Remaining performance obligation (RPO) grew to $6.1B (~31% YoY) with ~47% current RPO. Management reported record pipeline conversion for Q2 and double-digit sales productivity growth.
ZS Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
ZS Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 26, 2026 | $167.36 | $146.99 | -12.17% |
Nov 25, 2025 | $289.73 | $251.97 | -13.03% |
Sep 02, 2025 | $274.57 | $270.58 | -1.45% |
May 30, 2025 | $275.70 | $293.18 | +6.34% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Zscaler (ZS) report earnings?
Zscaler (ZS) is schdueled to report earning on May 28, 2026, After Close (Confirmed).
What is Zscaler (ZS) earnings time?
Zscaler (ZS) earnings time is at May 28, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is ZS EPS forecast?
ZS EPS forecast for the fiscal quarter 2026 (Q3) is 1.01.
