Zscaler (ZS) Company Report

Zscaler reported 25% ARR growth and 21% organic ARR growth for fiscal Q2, and raised its full-year ARR targets organically. The company also noted a record number of $1 million deals in Q2.
The Z-Flex program generated $290 million in TCV bookings in Q2, contributing to $650 million in TCV since its launch, with these deals typically being 7-digit and averaging 4 years.
Zscaler launched AI Protect on January 27th and views AI as a net positive opportunity, with AI security products expected to drive growth in non-seat based bookings, which reached 25% of new bookings in fiscal Q2.
The company maintains a strong market position in large enterprises, with 45% of Fortune 500 and 40% of Global 2000 as customers, and sees significant opportunity to expand its customer base and upsell, with enterprise customers' ARR growing 3x from initial buy in four years.
Management is focused on achieving GAAP profitability and reducing stock-based compensation, while aiming to maintain an 80% gross margin despite potential memory cost impacts.

2 days ago

Transcript

Zscaler reports strong fiscal Q2 performance and outlines AI and Zero Trust growth strategy

Guidance Update

Product Launch

Revenue Acceleration/Inflection

Zscaler reported 25% ARR growth and 21% organic growth for fiscal Q2, along with a record number of $1 million deals.
The Z-Flex program generated $290 million in TCV bookings in Q2, contributing to $650 million in TCV under the program since its launch, driving larger and longer-term customer commitments.
AI is considered a net positive opportunity, with the launch of AI Protect on January 27th and new AI security products expected to significantly contribute to non-seat based ARR, which reached 25% of new bookings in fiscal Q2.
The company's growth strategy focuses on Zero Trust everywhere, data security everywhere, and AI Security at all angles, with an ambition to reach $10 billion ARR and beyond.
Zscaler targets the large enterprise space, where it observes reduced competition and significant market opportunity, with less than 25% of its target 20,000 companies currently customers.

2 days ago

Transcript

Zscaler Reports Strong Q2 2026 Results and Raises Full-Year Guidance

Earnings

Guidance Update

Revenue Acceleration/Inflection

Zscaler reported strong Q2 2026 results, with ARR growing 25% year-over-year to $3.4 billion and revenue increasing 26% year-over-year to $816 million. As a result, the company increased its full fiscal year 2026 guidance, projecting ARR of $3.730 billion-$3.745 billion and revenue of $3.309 billion-$3.322 billion.
The company is strategically focusing on securing the AI transformation, positioning itself as the security platform for the AI era due to the new vulnerabilities and expanded attack surface created by AI adoption.
Key growth pillars include Zero Trust Everywhere, which has grown to over 550 enterprises (from over 130 a year ago) and can lead to a 2 to 3x ARR uplift. Additionally, non-seat-based metered usage solutions now account for over a quarter of new ACV and saw ARR grow over 100% year-over-year.

6 days ago

Transcript

Zscaler Reports Strong Q2 2026 Results and Raises Full-Year Guidance

Earnings

Guidance Update

M&A

Zscaler reported strong Q2 fiscal 2026 results, with revenue growing 26% year-over-year to $816 million and total annual recurring revenue (ARR) increasing 25% year-over-year to $3.4 billion. The company also achieved a 20.7% free cash flow margin.
The company increased its full-year fiscal 2026 guidance for ARR, revenue, operating profit, and earnings per share, projecting FY 2026 revenue of $3.309 billion-$3.322 billion and total ARR of $3.730 billion-$3.745 billion.
Zscaler is strategically focused on securing the AI era, with its AI Protect solution gaining rapid demand, including an $8-figure new logo win, and non-seat-based metered usage solutions growing more than 100% year-over-year.
Customer adoption of Zero Trust Everywhere solutions is expanding, with the number of enterprises growing to over 550 from over 130 a year ago, and the company closed the acquisition of SquareX on February 5th to extend Zero Trust capabilities.

6 days ago

Transcript

Zscaler Reports Strong Q2 2026 Results and Raises Guidance

Earnings

Guidance Update

New Projects/Investments

Zscaler delivered strong Q2 2026 results, with revenue growing 26% year-over-year to $816 million and total ARR reaching $3.4 billion, up 25%. The company also increased its guidance across the board for the second half of fiscal 2026.
The company is strategically focused on AI security and Zero Trust Everywhere, with the latter seeing the number of enterprises grow to over 550 from over 130 a year ago. Non-seat-based metered usage solutions delivered over a quarter of new ACV, with related ARR growing over 100% year-over-year.
The Z-Flex program generated over $290 million in TCV in Q2 2026, up over 65% quarter-over-quarter, underscoring customers' long-term commitment to Zscaler.

6 days ago

Transcript

Zscaler Announces Strong Q2 Fiscal 2026 Results and Raises Full-Year Guidance

Earnings

Guidance Update

M&A

Zscaler reported strong second-quarter fiscal 2026 results, with revenue growing 26% year-over-year to $815.8 million and Annual Recurring Revenue (ARR) increasing 25% year-over-year to $3,359 million as of January 31, 2026.
The company raised its fiscal 2026 guidance, now projecting Annual Recurring Revenue of $3.730 billion to $3.745 billion (24% growth) and revenue of approximately $3.309 billion to $3.322 billion (24% growth).
Non-GAAP operating margin reached an all-time high of 22% in Q2 2026, and non-GAAP net income per share was $1.01.
Key strategic moves include the acquisition of SquareX Holdings, Inc. to advance Zero Trust browser security and the introduction of Zscaler AI Protect to secure enterprise AI implementations.

6 days ago

8-K

Zscaler Acquires SquareX

M&A

New Projects/Investments

Zscaler, Inc. (NASDAQ: ZS) announced the acquisition of SquareX, which closed on February 5, 2026.
This acquisition is intended to extend Zero Trust capabilities into the browser for the AI era, aiming to redefine browser security by allowing lightweight extensions in any browser and eliminating the need for third-party browsers.
The integration will enable Zscaler to provide uncompromising security to unmanaged devices, securing users within preferred browsers like Google Chrome and Microsoft Edge without a full agent or separate third-party browser.
This strategic move is designed to replace expensive, insecure legacy access tools with precise Zero Trust policies that protect data and AI interactions.
The terms of the transaction were not disclosed.

Feb 5, 2026, 9:07 PM

Press Release

Zscaler Unveils New AI Security Innovations

Product Launch

New Projects/Investments

Zscaler, Inc. announced new AI security innovations to empower enterprises to secure the fast-growing use of AI, addressing the rising risk of cyberattacks and data loss because traditional security models were not designed for AI.
The new Zscaler AI Security Suite aims to eliminate the trade-off between AI innovation and risk by providing the necessary visibility, control, and governance to securely build, deploy, and govern AI at enterprise scale.
Zscaler's innovations provide a comprehensive inventory and dependency map of AI footprint, correlating asset discovery, access relationships, data lineage, runtime behavior, and security posture.
The suite addresses three core enterprise AI security challenges: AI Asset Management, Secure Access to AI, and Secure AI Infrastructure and Apps.
Zscaler supports customers in aligning their security programs with frameworks like the NIST AI Risk Management Framework and the EU AI Act, and offers deep ecosystem integrations with partners including OpenAI, Anthropic, AWS, Microsoft, and Google.

Jan 27, 2026, 8:03 AM

Press Release

Zscaler Stockholders Approve Annual Director Elections and Other Proposals

Board Change

Executive Compensation

Proxy Vote Outcomes

Zscaler held its annual meeting on January 12, 2026, where stockholders addressed several key proposals for the FY 2026 period.
Andrew Brown, Scott Darling, and David Schneider were elected as Class 2 directors.
Stockholders ratified PricewaterhouseCoopers LLP as the independent registered public accounting firm for the fiscal year ending July 31, 2026.
The compensation of named executive officers was approved on an advisory basis, and stockholders expressed a preference for a one-year frequency for future advisory votes on executive compensation.
A significant stockholder proposal to elect all directors annually was approved, leading to the declassification of the board, despite the board's recommendation against it.

Jan 12, 2026, 9:00 PM

Transcript

Zscaler's Annual Meeting Results for FY 2026

Proxy Vote Outcomes

Board Change

Executive Compensation

Zscaler held its annual meeting on January 12, 2026, where stockholders voted on several key proposals.
Andrew Brown, Scott Darling, and David Schneider were elected as Class 2 directors.
Stockholders ratified PricewaterhouseCoopers LLP as the independent registered public accounting firm for the fiscal year ending July 31, 2026, and approved the compensation of named executive officers, also expressing a preference for annual advisory votes on executive compensation.
A significant outcome was the approval of a stockholder proposal to elect all directors annually (declassify the board), despite the board's recommendation against it.

Jan 12, 2026, 9:00 PM

Transcript

Earnings Transcripts

Quarterly earnings call transcripts for Zscaler.

Q2 2026

Feb 26, 2026

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Q1 2026

Nov 25, 2025

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Q4 2025

Sep 2, 2025

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View All Transcripts

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