Zscaler, Inc. · ZS · FY2026 Q2 · Calendar Q1 2026

Zscaler raises FY26 outlook as AI security and usage growth accelerate

The quarter supports the view that resilient demand and expanding AI-security use cases can sustain growth: ARR and revenue increased strongly, guidance was raised, and metered usage is scaling. The thesis remains dependent on competitive execution, integration, and continued AI adoption.

Reported After market closeNASDAQTechnology $32.14B market cap
90quality score

Earnings scorecard

Reported versus consensus
Reported EPS $1.01 Consensus $0.89
EPS surprise +13.0% Reported versus consensus
Reported revenue $815.8M Consensus $798.3M
Revenue surprise +2.2% Reported versus consensus

Market reaction

event-close to next-session close
Stock move -12.2% Event window
SPY move -0.5% Same window
Abnormal move -11.7% Stock minus SPY
Volume 3.5× Versus trailing sessions
Subsequent drift -9.4% Up to 20 sessions
ZSSPY benchmark

Ask FN2 about ZS FY2026 Q2

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Why did ZS fall 12.2% after beating EPS estimates in FY2026 Q2?What changed in ZS's guidance and outlook in FY2026 Q2?Give me the bull and bear case for ZS after FY2026 Q2 earnings.

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Transcript intelligence

What changed

The latest analysis shows stronger scale in AI-security and non-seat-based usage, raised full-year guidance, and broader product capability following SquareX and Red Canary. No prior-quarter transcript analysis was available for a direct quarter-over-quarter narrative comparison.

Guidance delta

Management raised full-year FY26 guidance, with roughly 24% ARR growth and higher operating-profit margins expected.

Key takeaways

  • ARR grew 25% year over year to $3.4 billion and revenue rose 26% to $816 million.
  • AI Protect and Agentic SecOps are gaining traction, while non-seat-based metered usage is expanding.
  • Zero Trust Everywhere customers rose from about 130 to more than 550, supporting higher ARR per customer.
  • SquareX and Red Canary broaden the platform but add integration and execution considerations.

Management priorities

  • Expand AI Protect, Agentic SecOps, and ZDX CoPilot.
  • Integrate Red Canary technology into the Zero Trust Exchange.
  • Roll out SquareX browser-extension security and expand Zero Trust coverage.
  • Grow metered usage and larger multi-year contracts through the Z-Flex program.

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Earnings History

Estimate Beat Miss Match
ZS EPS earnings history estimate and actual scatter chart 9 reported fiscal quarters and 4 future estimate-only quarters. Q1 '24 estimate $0.49 Q1 '24 actual $0.67, beat Q2 '24 estimate $0.58 Q2 '24 actual $0.76, beat Q3 '24 estimate $0.66 Q3 '24 actual $0.88, beat Q4 '24 estimate $0.70 Q4 '24 actual $0.88, beat Q4 '25 estimate $0.80 Q4 '25 actual $0.89, beat Q1 '26 estimate $0.86 Q1 '26 actual $0.96, beat Q2 '26 estimate $0.89 Q2 '26 actual $1.01, beat Q3 '26 estimate $1.01 Q3 '26 actual $1.08, beat Q4 '26 estimate $1.09 Q4 '26 actual $1.19, beat Q1 '27 estimate $1.16 Q2 '27 estimate $1.18 Q3 '27 estimate $1.23 Q4 '27 estimate $1.32
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Analyst Consensus ?

ConsensusBuy53 ratings
Bullish4279.2%
Neutral1018.9%
Bearish11.9%

Analyst 52W Price Targets

$198.78Previous close
$105Low
$230.75Average
$415High

Latest persisted target per named analyst; persisted previous close from FN2's market snapshot as of Oct 2, 2026. Not an FN2 forecast.

Firm-level rating actions

FMP grade actions identify the grading firm, not a named analyst.

FirmRatingPrior ratingActionDate
Barclays Overweight OverweightMaintainSep 29, 2026
Wedbush Outperform OutperformMaintainSep 28, 2026
RBC Capital Outperform OutperformMaintainSep 25, 2026
Mizuho Outperform OutperformMaintainSep 25, 2026
Bernstein Outperform OutperformMaintainSep 17, 2026
Show 48 more rating actions

Named analyst price targets

Upside is calculated against the persisted previous close $198.78. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
RBC CapitalAnalyst unavailable$236$195.89 +18.7%Sep 25, 2026
BernsteinAnalyst unavailable$298$191.58 +49.9%Sep 17, 2026
Roth CapitalTaz Koujalgi$170$169.8 -14.5%Sep 5, 2026
StephensAnalyst unavailable$215$170.32 +8.2%Sep 4, 2026
NeedhamAlex Henderson$215$177.8 +8.2%Sep 4, 2026
See 183 more

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Company context

Snapshot as of publication

Globally recognized, Zscaler, Inc. functions as a leading provider of cloud-based security solutions. Its core offerings include Zscaler Internet Access (ZIA), which ensures secure connectivity for a diverse range of entities – including users, servers, operational technology (OT), and IoT devices – when accessing external resources like software-as-a-service (SaaS) applications and general internet destinations. Complementing this, the Zscaler Private Access (ZPA) solution facilitates secure entry to internal applications residing in private or public clouds and traditional data centers. Zscaler also delivers Zscaler Digital Experience (ZDX), a tool that assesses the complete user journey across various business applications. ZDX then generates a clear, digestible digital experience score for individual users, specific applications, and different locations within an organization. Furthermore, the company's portfolio extends to advanced workload segmentation solutions.…

Historical context

All ZS earnings
-4.5%FY2026 Q4 · Calendar Q3 2026-31.5%FY2026 Q3 · Calendar Q2 2026

Technology peers this season

Latest reports in the same sector
CompanyQuarterEPS surpriseMarket moveHeadline
ACN Accenture plc FY2026 Q4 · Calendar Q4 2026 +3.5% +15.8% Accenture: AI demand supports strong Q4, while pricing and geopolitics remain risks
JBL Jabil Inc. FY2026 Q4 · Calendar Q3 2026 +8.1% -10.0% Jabil enters FY2027 with AI-led growth and capacity risks
MU Micron Technology, Inc. FY2026 Q4 · Calendar Q3 2026 +5.4% +0.0% Micron: Strong AI Memory Demand, Higher Capex, and HBM4E Ahead
SNX TD Synnex Corp FY2026 Q3 · Calendar Q3 2026 +20.9% -9.9% TD SYNNEX: AI-led growth accelerates, but mix and cash flow matter
ADBE Adobe Inc. FY2026 Q3 · Calendar Q3 2026 +0.8% +1.4% Adobe raises FY26 outlook as AI strategy broadens
ORCL Oracle Corporation FY2027 Q1 · Calendar Q3 2026 +10.3% -1.7% Oracle raises FY27 outlook as AI demand accelerates cloud growth

Latest beats and misses

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Sources

  1. Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
  2. FN2 earnings calendar · 2026-07-26T00:36:15.940040+00:00
  3. Polygon adjusted daily market bars · 2026-10-02T09:06:09.467729+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-02T09:06:09.464707+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated · As of 2026-10-02. For educational purposes only; not investment advice.