Zscaler Q2 revenue up 26%, beats estimates

Zscaler

26/02/2026 21:18

Overview

Cloud security firm's Q2 revenue rose 26% yr/yr, beating analyst expectations

Adjusted EPS for Q2 was $1.01, exceeding analyst estimates

Outlook

Zscaler expects Q3 revenue between $834 mln and $836 mln, growth of 23%

Company raises full-year ARR guidance to $3.730 bln to $3.745 bln

Result Drivers

AI AND ZERO TRUST DEMAND - Robust demand across AI Security, Zero Trust Everywhere, and Data Security drove results

ACQUISITIONS BOOST ARR - Red Canary acquisition contributed significantly to ARR growth, with 21% growth excluding its impact

HIGH OPERATING MARGIN - Innovation and disciplined execution led to a non-GAAP operating margin over 22%

Company press release: ID:nGNX3YMVsP

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$815.75 mln
$798.82 mln (41 Analysts)
Q2 Adjusted EPS
Beat
$1.01
$0.90 (42 Analysts)
Q2 EPS
-$0.21
Q2 Adjusted Net Income
Beat
$168.70 mln
$152.56 mln (39 Analysts)
Q2 Net Income
-$34.31 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 41 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Zscaler Inc is $302.50, about 94.3% above its February 25 closing price of $155.70

The stock recently traded at 37 times the next 12-month earnings vs. a P/E of 86 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)