Filing Flows › Zscaler (ZS) › Q2 FY26
Zscaler (ZS) Q2 FY26 earnings results (second quarter fiscal 2026)
10-Q filed Feb 26, 2026
Zscaler (ZS) reported revenue of $816M for the second quarter fiscal 2026 (Q2 FY26), +26% from a year earlier and +4% from the quarter before. Operating margin was -6.3%, net loss $34.3M (4.2% of revenue).
Zscaler, Q2 FY26: revenue $816M (+26% year over year), operating margin -6.3%, net loss $34.3M, operating cash flow $204M. The chart follows the revenue to costs, profit and cash.
| Q2 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $816M | +4% | +26% |
| Operating profit | −$51.8M | — | — |
| Net earnings | −$34.3M | — | — |
| Operating cash flow | $204M | -54% | +14% |
| Free cash flow | $186M | -57% | +13% |
What changed
Revenue was $815.8M in Q2 FY26, up 26% year over year and up 4% from the previous quarter.
Gross margin was 76.6%, down 0.5 points from Q2 FY25. Operating costs exceeded revenue by $51.8M, an operating margin of -6.3%. Operating expenses grew 25% against revenue growth of 26%. The fastest-growing cost line was Research & development (+34%). The quarter ended with a net loss of $34.3M, wider than the previous quarter's $11.6M loss. Non-operating items added $30.5M, -143% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $204.1M (up 14% year over year). Non-cash charges added back $216.6M of share-based compensation. Working capital and other items added $21.8M. Capital expenditures of $17.8M left free cash flow of $186.3M.
Questions
What was Zscaler's revenue in the second quarter fiscal 2026?
Zscaler (ZS) reported revenue of $816M for the second quarter fiscal 2026 (Q2 FY26), +26% from a year earlier and +4% from the quarter before.
Was Zscaler profitable in the second quarter fiscal 2026?
Operating loss was $51.8M (-6.3% of revenue) and net loss $34.3M.
Source: Zscaler 10-Q on SEC EDGAR.