Short answer
Zscaler (ZS) filed its Q2 2026 10-Q quarterly report on May 26, 2026 for the quarter ended Apr 30, 2026. Quarterly revenue was $850M (up 25.4% year over year) with net income of −$14M.
Q2 2026 key financials · XBRL
- Revenue
- $850M
- +25.4% YoY · +4.3% QoQ
- Net income
- −$14M
- −236.6% YoY · +59.5% QoQ
- Operating margin
- -3.5%
- Gross margin
- 77.3%
- EPS (diluted)
- −$0.08
- −166.7% YoY · +63.6% QoQ
Source: XBRL data from the Zscaler (ZS) Q2 2026 10-Q on SEC EDGAR. USD.
Zscaler Q2 2026 10-Q analysis
AI summary of MD&A and risk factor updates
Management Discussion & Analysis
- Quarterly revenue $850.5M vs $678.0M, up $172.4M YoY
- GAAP gross margin 77% vs 77%; non-GAAP operating margin 23% vs 22%
- One reportable segment; ARR $3,525M vs $2,817M YoY
- Operating cash flow $198.0M vs $211.1M; free cash flow $136.0M vs $119.5M
- Customer scrutiny and elongated approval processes, particularly for larger deals
Risk Factors
- No newly added risk factor identified; filing presents principal risks without quarter-over-quarter change disclosure
- Channel concentration risk: top five partners represented 30% of nine-month revenue through April 30, 2026
- AI-driven competitive risk: AI may lower entry barriers and accelerate alternative security-solution development
- Customer-retention risk: EU Data Act may permit cancellation without cause on 30–60 days’ notice
- Profitability risk: accumulated deficit reached $1,249.4 million as of April 30, 2026
Generated from the filing text; verify against the original. 10-K vs 10-Q vs 8-K
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