What is Zscaler's latest dividend and current dividend yield?

What is the revenue and EPS growth rate for Zscaler year over year?

What guidance did Zscaler's management provide for the next earnings period?

What does Zscaler do and what are its main business segments?

Did Zscaler beat or miss consensus estimates last quarter?

What is Zscaler's gross profit margin?

What factors drove the changes in Zscaler's revenue and profit?

What is the market's earnings forecast for Zscaler next quarter?

- **Rule of 78 performer**: 26% ARR growth + 52% FCF margin = 78, vs. industry Rule of 40. 
- **AI Security leader**: $0.5B ARR target by FY26, 80%+ YoY growth, 90B+ AI/ML txns/month. 
- **Zero Trust Everywhere adoption**: 450+ customers (3Q early), eliminating $M in legacy costs. 
- **Z-Flex success**: $175M TCV bookings (70% QoQ), enabling frictionless module expansion. 
- **FY26 guidance**: 23%+ revenue growth, $3.7B ARR, 26% FCF margin.

**【CEO Summary Section】**
- Q1 ARR grew 26% YoY to $3.2B, driven by acceleration in AI Security, Zero Trust Everywhere, and Data Security Everywhere. 
- AI Security ARR exceeded $400M target 3Q early, with $0.5B+ ARR expected by FY26 end. 
- Zero Trust Everywhere now has 450+ customers (3Q ahead of 390 target), eliminating legacy network/security products. 
- Data Security ARR reached ~$450M, with 8 modules consolidating point products. 
- Z-Flex program generated $175M TCV (70% QoQ growth), enabling flexible module swaps without new procurement cycles.

**【CFO Financial Commentary】**
- Q1 revenue $788M (+26% YoY), exceeding high end of guidance. 
- Gross margin 79.9%, operating margin 21.8% (vs. 21.4% last quarter). 
- Free cash flow margin 52%, with $3.3B cash on hand. 
- FY26 guidance: ARR $3.698B-$3.718B (+22.7%-23.3%), revenue $3.282B-$3.301B (+22.8%-23.5%). 
- Q2 guidance: Revenue $797M-$799M (+23% YoY), EPS $0.89-$0.90.

**【Q&A Highlights】**
- **Zero Trust Branch**: 450+ customers, ARR more than tripled in 1 deal. 4,400+ enterprise customers, only 10% penetrated. 
- **Competitive landscape**: Zscaler's platform differentiation (Zero Trust Everywhere + AI Security) outpaces legacy firewall vendors. 
- **Red Canary integration**: Slightly better than expected, but not material to overall results. 
- **SAP RISE migration**: Similar tailwind to Microsoft Exchange migration, driving Zero Trust Cloud adoption. 
- **Z-Flex impact**: 20% of bookings, longer-term visibility from multi-year commitments. 
- **AI Security trends**: 80%+ YoY growth, 90B+ AI/ML transactions/month, leading GenAI app visibility & guardrails.

Zscaler, Inc. (ZS) Q1 2026 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

ZS

ZS fundamentals

You can ask Aime