NASDAQ$ZS
Zscaler Inc · Q1 2026 earnings
Q1 2026 earnings · · After market close · Investor relations
Briefing
Zscaler reported strong Q1 results with solid revenue growth and a significant increase in non-GAAP profitability.
Zscaler posted robust revenue and ARR growth in Q1 FY2026, driven by demand for its Zero Trust and AI Security platforms. Despite a GAAP net loss, the company delivered strong non-GAAP income and free cash flow.
- Revenue grew to $788.1M, supported by continued demand for Zero Trust and AI Security.
- Non-GAAP net income rose to $159.5M with $0.96 in non-GAAP EPS.
- Free cash flow reached $413.3M, representing 52% of revenue.
- Deferred revenue rose 32% YoY to $2.35B, indicating strong future billing.
Headline financials
Revenue & EPS history
Zscaler · Revenue · Quarterly
$788M
Forward guidance
Zscaler expects continued top-line growth and strong profitability in Q2 and for the full year of FY2026.
Tailwinds
- Q2 revenue guidance set between $797M to $799M.
- Q2 non-GAAP income from operations expected between $172M and $174M.
- Q2 non-GAAP EPS projected at $0.89 to $0.90.
- Full-year revenue expected to exceed $3.28B.
- Full-year ARR guidance raised to up to $3.718B.
Headwinds
- GAAP operating losses are expected to continue in the near term.
- Cash decreased due to acquisitions of SPLX and Red Canary.
- Gross margin held flat despite revenue growth, showing potential cost pressure.
- Full-year net income remains reliant on non-GAAP adjustments.
- Heavy reliance on stock-based compensation and acquisitions for growth.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 19 quarterly earnings reports · overlaid with Q1 2026
+2.0%
Avg return
Earnings day
+2.0%
Avg return
5 days after
+2.6%
Avg return
30 days after
41%
13 / 32 earnings
Positive
+31.6%
Q3 2020
Best reaction
-21.4%
Q4 2024
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q3 2026 | — | — | — | |
| Q2 2026 | -3.0% | -6.7% | -20.4% | |
| Q1 2026 | -6.8% | -16.0% | -20.4% | |
| Q4 2025 | -1.5% | +2.6% | +11.2% | |
| Q3 2025 | +10.0% | +18.2% | +25.6% | |
| Q2 2025 | +2.9% | +1.5% | -11.1% | |
| Q1 2025 | -3.8% | +2.6% | -12.7% | |
| Q4 2024 | -21.4% | -21.6% | -15.2% | |
| Q3 2024 | +3.4% | +2.9% | +16.9% | |
| Q2 2024 | -7.6% | -13.0% | -18.8% | |
| Q1 2024 | +0.4% | +2.6% | +16.5% | |
| Q4 2023 | -0.0% | +1.5% | -3.2% | |
| Q3 2023 | +5.1% | +12.9% | +8.0% | |
| Q2 2023 | -7.2% | -8.2% | -9.0% | |
| Q1 2023 | -3.3% | -13.1% | -16.1% | |
| Q4 2022 | +27.3% | +22.7% | +15.2% | |
| Q3 2022 | +20.7% | +15.5% | +28.8% | |
| Q2 2022 | -7.3% | +3.5% | -3.8% | |
| Q1 2022 | -10.6% | -12.0% | -8.8% | |
| Q4 2021 | -3.6% | -1.7% | -5.0% | |
| Q3 2021 | +11.4% | +11.4% | +25.9% | |
| Q2 2021 | -1.3% | -2.5% | -18.3% | |
| Q1 2021 | +22.4% | +17.4% | +31.7% | |
| Q4 2020 | -0.4% | -2.3% | +14.1% | |
| Q3 2020 | +31.6% | +42.5% | +42.2% | |
| Q2 2020 | -16.4% | -22.6% | -17.7% | |
| Q1 2020 | -2.4% | -8.6% | -7.3% | |
| Q4 2019 | -19.9% | -23.4% | -23.7% | |
| Q3 2019 | -3.5% | +1.1% | +7.7% | |
| Q2 2019 | +19.4% | +13.4% | +39.8% | |
| Q1 2019 | +9.9% | +3.2% | +0.5% | |
| Q4 2018 | -5.4% | +3.4% | -16.3% | |
| Q3 2018 | +25.4% | +36.9% | +26.2% | |
| Q2 2018 | — | — | — | |
| Q1 2018 | — | — | — | |
| Q4 2017 | — | — | — | |
| Q3 2017 | — | — | — | |
| Q2 2016 | — | — | — | |
| Q1 2016 | — | — | — | |
| Q4 2016 | — | — | — | |
| Q3 2016 | — | — | — |
Discussion
Share your read of this quarter. Sign-in carries your eToro identity.
Join the conversation
Sign in with eToro to post your read of this quarter and vote on others'.
Sign in with eToro