NASDAQ$ZS

Zscaler Inc · Q2 2026 earnings

Q2 2026 earnings · · After market close · Investor relations

Briefing

Zscaler reported strong second quarter fiscal 2026 results with 26% revenue growth and record non-GAAP profitability.

Revenue increased 26% year over year to 815751000, while GAAP net loss was 34312000. Non-GAAP net income reached 168651000, and ARR grew 25% year over year to 3359000000, reflecting continued platform demand and strong recurring revenue momentum.

  • Revenue grew 26% year over year to 815751000.
  • ARR increased 25% year over year to 3359000000.
  • Non-GAAP income from operations was 180966000 with a 22% margin.
  • Free cash flow totaled 169129000, representing a 21% margin.

Headline financials

Total Revenue

$816M

Previous: $648M+25.9%
EPS

-$0.21

Previous: $0.78-126.9%
Cash Flow from Operations

$204M

Previous: $179M+13.7%
Annual Recurring Revenue

$3.36B

Previous: $2.69B+25.0%
Total Deferred Revenue

$2.36B

Previous: $1.88B+25.0%
Capital Expenditures

-$35.1M

Previous: -$32M-9.4%
Free Cash Flow

-$69.4M

No prior period
Net Income

-$34.3M

Previous: -$7.72M-344.2%
Operating Income

-$51.8M

Previous: -$40.1M-29.0%
Gross Profit

$624M

Previous: $499M+25.0%
Cash & Equivalents

$1.2B

No prior period
Total Assets

$6.75B

No prior period

Revenue & EPS history

Zscaler · Revenue · Quarterly

$816M

Q2 2026+25.9%vs Q2 2025
Beat estimate in 15 of 15 quarters(100%)
ActualEstimate

Forward guidance

For Q3 fiscal 2026, Zscaler expects revenue between 834000000 and 836000000 and non-GAAP net income per share between 1.00 and 1.01. For full fiscal 2026, revenue is expected between 3309000000 and 3322000000 and ARR between 3730000000 and 3745000000.

Tailwinds

  • Q3 revenue expected to grow 23% year over year.
  • Full-year ARR guidance raised to 24% growth.
  • Full-year revenue guidance increased to 3309000000 to 3322000000.
  • Non-GAAP operating income expected between 742000000 and 748000000 for full year.
  • Non-GAAP EPS expected between 3.99 and 4.02 for full year.

Headwinds

  • GAAP operating loss of 51773000 in Q2.
  • GAAP net loss of 34312000 in Q2.
  • Deferred revenue declined sequentially from 2054417000 to 1983569000 (current portion).
  • Cash and cash equivalents declined from 2389023000 at July 31, 2025 to 1202751000.
  • Convertible senior notes outstanding totaled 1702718000.

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 Q2 2026

Historical avgQ2 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

Earnings price reactions
QuarterReport dateReaction (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

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