Q1 26 EPS
$0.96
BEAT +11.42%
Est. $0.86
Q1 26 Revenue
$788.1M
BEAT +1.84%
Est. $773.9M
vs S&P Since Q1 26
-53.5%
TRAILING MARKET
ZS -47.0% vs S&P +6.5%
Market Reaction
Did ZS Beat Earnings? Q1 2026 Results
Zscaler delivered a strong fiscal first quarter of 2026, posting revenue of $788.11 million, up 25.5% year over year and ahead of the $773.86 million consensus estimate, while non-GAAP EPS of $0.96 cleared the $0.86 consensus by 11.42%, underscoring … Read more Zscaler delivered a strong fiscal first quarter of 2026, posting revenue of $788.11 million, up 25.5% year over year and ahead of the $773.86 million consensus estimate, while non-GAAP EPS of $0.96 cleared the $0.86 consensus by 11.42%, underscoring broad-based momentum across the business. The results were driven in large part by sustained enterprise demand for Zscaler's Zero Trust and AI Security platform, with Annual Recurring Revenue climbing 26% year over year to $3.20 billion and deferred revenue growing 32% to $2.35 billion, signaling robust bookings. The quarter also featured two acquisitions, Red Canary and SPLXAI, for a combined $692.00 million, extending the company's managed detection and AI security capabilities. Free cash flow reached $413.30 million, representing a 52% margin. Despite the clean beat, shares came under pressure as investors found little to get excited about in guidance that largely met rather than exceeded expectations; for Q2, Zscaler guided revenue of $797 million to $799 million and full-year revenue of $3.28 billion to $3.30 billion, with non-GAAP EPS of $3.78 to $3.82.
Key Takeaways
- • Strong demand for Zero Trust and AI Security platform
- • 26% year-over-year ARR growth to $3.204 billion
- • 32% year-over-year deferred revenue growth indicating strong bookings
- • Free cash flow margin expansion to 52% from 46% year-over-year
- • Increasing customer reliance on platform for security, lower costs, and reduced IT complexity
ZS YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
“Our outstanding Q1 results demonstrate the strong demand we are experiencing for our Zero Trust and AI Security platform. With over $3.2B in Annual Recurring Revenue, growing over 25% year-over-year, and Rule-of-78 performance, I'm very pleased to share that an increasing number of customers are relying on our platform for better security, lower operational costs and reduced IT complexity.”
— Jay Chaudhry, Q1 2026 Earnings Press Release
ZS Earnings Trends
ZS vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
ZS EPS Trend
Earnings per share: estimate vs actual
ZS Revenue Trend
Quarterly revenue: estimate vs actual
ZS Quarterly Results
11 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q2 26 BEAT | $0.90 | $1.01 | +12.56% | $815.8M | +2.11% |
| Q1 26 BEAT | $0.86 | $0.96 | +11.42% | $788.1M | +1.84% |
| Q4 25 BEAT FY | $0.80 | $0.89 | +11.25% | $719.2M | +1.71% |
| FY Full Year | $3.19 | $3.28 | +2.73% | $2.67B | +0.45% |
| Q3 25 BEAT | $0.76 | $0.84 | +10.77% | $678.0M | +1.64% |
| Q4 24 BEAT FY | $0.69 | $0.88 | +27.54% | $592.9M | +4.39% |
| FY Full Year | — | $3.19 | — | $2.17B | — |
| Q3 23 BEAT | $0.42 | $0.48 | +14.29% | $418.8M | +0.76% |
| Q2 23 | $0.29 | — | — | — | — |
| Q1 23 BEAT | $0.26 | $0.29 | +11.54% | $355.5M | +3.39% |
| Q4 22 | $0.00 | — | — | — | — |
| Q2 22 BEAT | $0.11 | $0.13 | +18.18% | $255.6M | +5.80% |
| Q3 21 BEAT | $0.07 | $0.15 | +114.29% | $176.4M | +7.75% |