10-Q quarterly report · filed May 26, 2026

Zscaler (ZS) Q2 2026 10-Q Quarterly Report

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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