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Zscaler (ZS) Q1 FY26 earnings results (first quarter fiscal 2026)

10-Q filed Nov 25, 2025

Zscaler (ZS) reported revenue of $788M for the first quarter fiscal 2026 (Q1 FY26), +26% from a year earlier and +10% from the quarter before. Operating margin was -4.6%, net loss $11.6M (1.5% of revenue).

Revenue$788M
Year over year+26%
Quarter over quarter+10%
Operating margin-4.6%
Net earnings−$11.6M

Zscaler, Q1 FY26: revenue $788M (+26% year over year), operating margin -4.6%, net loss $11.6M, operating cash flow $448M. The chart follows the revenue to costs, profit and cash.

Q1 FY26AmountQ/QY/Y
Revenue$788M+10%+26%
Operating profit−$36.4M——
Net earnings−$11.6M——
Operating cash flow$448M+79%+35%
Free cash flow$431M+126%+37%

What changed

Revenue was $788.1M in Q1 FY26, up 26% year over year and up 10% from the previous quarter.

Gross margin was 76.6%, down 0.9 points from a year earlier. Operating costs exceeded revenue by $36.4M, an operating margin of -4.6%. Operating expenses grew 24% against revenue growth of 26%. The fastest-growing cost line was Research & development (+30%). The quarter ended with a net loss of $11.6M, narrower than the previous quarter's $17.6M loss. Non-operating items added $28.0M, -334% of pre-tax earnings, so the bottom line overstates operating performance.

Operating cash flow was $448.3M (up 35% year over year). Non-cash charges added back $188.6M of share-based compensation. Working capital and other items added $271.3M. Capital expenditures of $17.3M left free cash flow of $431.0M.

Questions

What was Zscaler's revenue in the first quarter fiscal 2026?

Zscaler (ZS) reported revenue of $788M for the first quarter fiscal 2026 (Q1 FY26), +26% from a year earlier and +10% from the quarter before.

Was Zscaler profitable in the first quarter fiscal 2026?

Operating loss was $36.4M (-4.6% of revenue) and net loss $11.6M.

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Source: Zscaler 10-Q on SEC EDGAR.