Zscaler (ZS) Earnings Date & Reports

Key Takeaways

• Zscaler reported third-quarter fiscal 2026 revenue of $850.5 million, up 25% year-over-year.
• Non-GAAP earnings per share reached $1.08, exceeding analyst expectations.
• Annual recurring revenue grew 25% to $3.525 billion.
• The company raised full-year fiscal 2026 guidance for revenue, ARR, and non-GAAP earnings.
• Non-GAAP operating margin hit a record 23%.
• Operating cash flow was $198 million and free cash flow was $136 million.

Earnings Context and Why It Matters

Zscaler, a leader in cloud security, delivers its results on a fiscal year ending July 31. The third quarter of fiscal 2026, ended April 30, 2026, provides a key update on demand for its zero-trust security platform amid ongoing enterprise digital transformation. Strong prior-quarter trends and industry focus on cybersecurity make this report significant for assessing growth sustainability and profitability in a competitive market.

Reported Results

Revenue totaled $850.5 million, a 25% increase from the prior-year quarter and above consensus estimates. Non-GAAP earnings per share came in at $1.08, surpassing analyst forecasts of approximately $1.01. Annual recurring revenue rose 25% year-over-year to $3.525 billion, while deferred revenue also increased 25%. Non-GAAP operating income reached $195.8 million for a record 23% margin. The company raised its full-year fiscal 2026 guidance for ARR, revenue, non-GAAP operating income, and non-GAAP EPS. GAAP net loss widened slightly to $13.9 million.

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Market Reaction and Investor Sentiment

Shares rose modestly in after-hours trading following the release, reflecting investor approval of the revenue beat, margin expansion, and raised guidance. Sentiment remains positive heading into the final quarter of the fiscal year, supported by consistent growth and operational leverage.

Forward Outlook and Key Factors to Monitor

Investors will focus on Zscaler’s updated full-year guidance and its implications for fourth-quarter performance. Key areas include continued ARR momentum, customer acquisition trends, and expansion within existing accounts.

Management highlighted ongoing investments in product innovation and sales capacity. Margin trends and cash flow generation will also warrant attention as the company scales.

Broader industry dynamics, such as enterprise spending on cloud security and competitive positioning, remain relevant. The next earnings update, expected in late August or early September 2026, will provide further clarity on fiscal 2027 outlook.

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