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Jan 31
Zscaler Q2 2026 Earnings Report
Zscaler reported strong second quarter fiscal 2026 results with 26% revenue growth and record non-GAAP profitability.
Key Takeaways
Revenue increased 26% year over year to 815751000, while GAAP net loss was 34312000. Non-GAAP net income reached 168651000, and ARR grew 25% year over year to 3359000000, reflecting continued platform demand and strong recurring revenue momentum.
Revenue grew 26% year over year to 815751000.
ARR increased 25% year over year to 3359000000.
Non-GAAP income from operations was 180966000 with a 22% margin.
Free cash flow totaled 169129000, representing a 21% margin.
Forward Guidance
For Q3 fiscal 2026, Zscaler expects revenue between 834000000 and 836000000 and non-GAAP net income per share between 1.00 and 1.01. For full fiscal 2026, revenue is expected between 3309000000 and 3322000000 and ARR between 3730000000 and 3745000000.
Positive Outlook
- Q3 revenue expected to grow 23% year over year.
- Full-year ARR guidance raised to 24% growth.
- Full-year revenue guidance increased to 3309000000 to 3322000000.
- Non-GAAP operating income expected between 742000000 and 748000000 for full year.
- Non-GAAP EPS expected between 3.99 and 4.02 for full year.
Challenges Ahead
- GAAP operating loss of 51773000 in Q2.
- GAAP net loss of 34312000 in Q2.
- Deferred revenue declined sequentially from 2054417000 to 1983569000 (current portion).
- Cash and cash equivalents declined from 2389023000 at July 31, 2025 to 1202751000.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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