Zscaler (ZS) Q1 2026 10-Q Quarterly Report
Filed: Feb 26, 2026Period ending Jan 31, 2026
Information Technology
Services-Computer Programming ServicesSEC EDGAR Zscaler (ZS) 10-Q quarterly report for Q1 2026, filed with SEC EDGAR on Feb 26, 2026 for the fiscal period ending Jan 31, 2026. This page provides AI-powered analysis including management discussion & analysis (MD&A), risk factor updates, and key quarterly financial data such as revenue and net income extracted from XBRL.
Zscaler Q1 2026 10-Q Analysis
Management Discussion & Analysis
- • Q2 FY2026 revenue $815.8M, up 26% YoY ($167.9M increase); six-month revenue $1,603.9M, up 26% YoY
- • GAAP operating margin -6% vs -6% YoY; non-GAAP operating margin improved with non-GAAP income from operations $181.0M vs $140.5M; gross margin flat at 77% both periods
- • Operating cash flow $652.4M (6-month) vs $510.8M prior year; free cash flow $582.4M vs $435.3M; liquidity $3,512.8M cash and short-term investments
- • ARR $3,359M as of Jan 31, 2026, up 25% YoY from $2,683M; customer base grew 15% YoY
- • Management flagging elongated approval cycles for large deals and customer scrutiny of large expenditures as near-term headwinds
Risk Factors
- • Newly issued $1,725M in 0.0% Convertible Senior Notes due July 15, 2028; cash repayment required at maturity unless converted to equity
- • India operations risk heightened by recent India-Pakistan conflict; 37% of global workforce based there, mostly R&D and finance
- • Tariffs explicitly added as new customer acquisition barrier; also flagged as supply chain and channel partner operational risk
- • EU AI Act and fragmented global AI regulations creating compliance uncertainty across product development and internal operations
- • Top 5 channel partners represented 30% of revenue for six months ended January 31, 2026, up from 27% prior-year period — concentration increasing
Zscaler Q1 2026 Quarterly FinancialsXBRL
Revenue
$816M
▲ +25.9% YoY▲ +3.5% QoQ
Net Income
-$34M
▼ -344.2% YoY▼ -195.4% QoQ
Gross Margin
76.6%
▼ -53bp YoY▼ -0bp QoQ
Operating Margin
-6.3%
▼ -15bp YoY▼ -173bp QoQ
Net Margin
-4.2%
▼ -301bp YoY▼ -273bp QoQ
ROE
-1.6%
▼ -98bp QoQ
Total Assets
$6.8B
▲ +3.9% QoQ
EPS (Diluted)
$-0.22
▼ -340.0% YoY▼ -214.3% QoQ
Operating Cash Flow
$204M
▲ +13.7% YoY▼ -54.5% QoQ
Source: XBRL data from Zscaler Q1 2026 10-Q filing on SEC EDGAR. All figures in USD.
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