Filing Flows › Zscaler (ZS) › Q3 FY26
Zscaler (ZS) Q3 FY26 earnings results (third quarter fiscal 2026)
10-Q filed May 26, 2026
Zscaler (ZS) reported revenue of $850M for the third quarter fiscal 2026 (Q3 FY26), +25% from a year earlier and +4% from the quarter before. Operating margin was -3.5%, net loss $13.9M (1.6% of revenue).
Zscaler, Q3 FY26: revenue $850M (+25% year over year), operating margin -3.5%, net loss $13.9M, operating cash flow $198M. The chart follows the revenue to costs, profit and cash.
| Q3 FY26 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $850M | +4% | +25% |
| Operating profit | −$29.6M | — | — |
| Net earnings | −$13.9M | — | — |
| Operating cash flow | $198M | -3% | -6% |
| Free cash flow | $156M | -16% | +12% |
What changed
Revenue was $850.5M in Q3 FY26, up 25% year over year and up 4% from the previous quarter.
Gross margin was 77.3%, up 0.4 points from Q3 FY25. Operating costs exceeded revenue by $29.6M, an operating margin of -3.5%. Operating expenses grew 26% against revenue growth of 25%. The fastest-growing cost line was Research & development (+37%). The quarter ended with a net loss of $13.9M, narrower than the previous quarter's $34.3M loss. Non-operating items added $27.3M, -1150% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $198.0M (down 6% year over year). Non-cash charges added back $38.0M of depreciation and amortization and $205.2M of share-based compensation. Working capital and other items used $31.3M. Capital expenditures of $42.4M left free cash flow of $155.6M.
Questions
What was Zscaler's revenue in the third quarter fiscal 2026?
Zscaler (ZS) reported revenue of $850M for the third quarter fiscal 2026 (Q3 FY26), +25% from a year earlier and +4% from the quarter before.
Was Zscaler profitable in the third quarter fiscal 2026?
Operating loss was $29.6M (-3.5% of revenue) and net loss $13.9M.
Source: Zscaler 10-Q on SEC EDGAR.