Q2 26 EPS
$1.01
BEAT +12.56%
Est. $0.90
Q2 26 Revenue
$815.8M
BEAT +2.11%
Est. $798.9M
vs S&P Since Q2 26
-12.2%
TRAILING MARKET
ZS -6.7% vs S&P +5.5%
Market Reaction
Did ZS Beat Earnings? Q2 2026 Results
Zscaler delivered a standout fiscal Q2 2026, with the zero trust security leader posting revenue of $815.75 million, up 25.9% year over year and ahead of the $798.92 million consensus, while non-GAAP EPS of $1.01 beat the $0.90 estimate by 12.56%, re… Read more Zscaler delivered a standout fiscal Q2 2026, with the zero trust security leader posting revenue of $815.75 million, up 25.9% year over year and ahead of the $798.92 million consensus, while non-GAAP EPS of $1.01 beat the $0.90 estimate by 12.56%, reflecting disciplined execution across its expanding platform. The quarter's momentum was anchored by Annual Recurring Revenue reaching $3.36 billion, up 25% year over year, as enterprise demand for AI-era security drove broad-based adoption across Zscaler's three growth pillars: AI Security, Zero Trust Everywhere, and Data Security. Non-GAAP operating income hit an all-time high of $180.97 million at a 22% margin, contributing to what management described as a "Rule-of-62" performance fiscal year-to-date. Following the strong results, Zscaler raised its full-year ARR guidance to $3.73-$3.75 billion and lifted revenue guidance to $3.31-$3.32 billion, with Wells Fargo initiating coverage at Overweight, citing sustained 20% growth potential from newer platform areas.
Key Takeaways
- • 26% year-over-year revenue growth driven by robust demand across AI Security, Zero Trust Everywhere, and Data Security pillars
- • ARR grew 25% year-over-year to $3,359 million; 21% organic growth excluding Red Canary
- • Non-GAAP operating margin reached all-time high of 22%
- • Rule-of-62 fiscal year-to-date, significantly outperforming Rule-of-40 benchmark
- • Deferred revenue grew 25% year-over-year to $2,355.4 million
ZS Forward Guidance & Outlook
For Q3 FY2026, Zscaler expects revenue of $834–$836 million (23% growth), non-GAAP operating income of $187–$189 million (28–29% growth), and non-GAAP EPS of approximately $1.00–$1.01 (19–20% growth) on ~167 million diluted shares. For full-year FY2026, the company raised guidance: ARR of $3.730–$3.745 billion (24% growth, up from prior 23%); revenue of approximately $3.309–$3.322 billion (24% growth, up from prior 23%); non-GAAP operating income of $742–$748 million (28–29% growth); and non-GAAP EPS of $3.99–$4.02 (22–23% growth) on ~169 million diluted shares at a 21% non-GAAP tax rate.
ZS YoY Financials
Q2 2026 vs Q2 2025, source: SEC Filings
“We believe Zscaler is the cybersecurity platform for the AI age - our in-line Zero Trust platform is uniquely architected to secure the unprecedented speed and scale of AI and agentic workflows. Organizations racing to adopt AI are looking to us to provide the security solution they trust, and we're just scratching the surface of this massive future growth opportunity.”
— Jay Chaudhry, Q2 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% |