Short answer
Zscaler (ZS) filed its Q1 2026 10-Q quarterly report on Feb 26, 2026 for the quarter ended Jan 31, 2026. Quarterly revenue was $816M (up 25.9% year over year) with net income of −$34M.
Q1 2026 key financials · XBRL
- Revenue
- $816M
- +25.9% YoY · +3.5% QoQ
- Net income
- −$34M
- −344.2% YoY · −195.4% QoQ
- Operating margin
- -6.3%
- Gross margin
- 76.6%
- EPS (diluted)
- −$0.22
- −340.0% YoY · −214.3% QoQ
Source: XBRL data from the Zscaler (ZS) Q1 2026 10-Q on SEC EDGAR. USD.
Zscaler Q1 2026 10-Q analysis
AI summary of MD&A and risk factor updates
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
Generated from the filing text; verify against the original. 10-K vs 10-Q vs 8-K
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