Zscaler, Inc. (ZS) Q2 2026 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call highlights impressive financial performance with a 46% revenue increase and a 48% rise in ARR, driven by strong demand and platform adoption. Operating margin and free cash flow also showed significant improvements. Despite the absence of a detailed Q&A analysis, the overall financial metrics and optimistic guidance suggest a strong positive sentiment, likely leading to a stock price increase over the next two weeks.
Key Financial Performance
Revenue The revenue for Q2 2026 was $418.8 million, representing a 46% year-over-year increase. This growth was driven by strong customer demand and expansion of existing customer relationships.
Annual Recurring Revenue (ARR) ARR reached $1.8 billion, up 48% year-over-year. The increase was attributed to robust adoption of the company's Zero Trust Exchange platform.
Operating Margin Operating margin improved to 18%, up from 14% in the prior year. The improvement was due to operational efficiencies and scale.
Free Cash Flow Free cash flow was $120 million, a 50% increase year-over-year. This was driven by higher revenue and disciplined expense management.
You have reached the limit. Sign up to access full content
Get started
Operating Highlights
The selected topic was not discussed during the call.
You have reached the limit. Sign up to access full content
Get started
Risk or Challenges
Null: Null
You have reached the limit. Sign up to access full content
Get started
Guidance & Outlook
Future Revenue: The company's anticipated future revenue was mentioned in the forward-looking statements.
Annual Recurring Revenue: The company discussed expectations for annual recurring revenue in the forward-looking statements.
Net Financial Metrics: Forward-looking statements included projections related to net financial metrics.
You have reached the limit. Sign up to access full content
Get started
Shareholder Return Plan
The selected topic was not discussed during the call.
You have reached the limit. Sign up to access full content
Get started
Key Q&A
Q:Review of Unclear Management Responses
A:
You have reached the limit. Sign up to access full content
Get started
Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
BMO Capital
BTIG LLC
Bachman BMO
Boolani Citigroup
Boyd UBS
Brad Zelnick
Brian Essex
Chairman Kevin
Chaudhry Co
Citigroup Inc
Co Inc
Co Research
Division Brad
Division Brian
Division Eric
Division Fatima
Division Gray
Division Gregg
Division Hedberg
Division Ittai
Division Jonathan
Division Keith
Division Meta
Division Roger
EST Jagtar
Equity Research
Eric Heath
Essex JPMorgan
Fatima Boolani
Finance today
Inc Research
LLC Research
Research Division
ZS Transcript
Zscaler, Inc. (ZS) Q2 2026 Earnings Call Transcript
Positive2-27
The earnings call highlights impressive financial performance with a 46% revenue increase and a 48% rise in ARR, driven by strong demand and platform adoption. Operating margin and free cash flow also showed significant improvements. Despite the absence of a detailed Q&A analysis, the overall financial metrics and optimistic guidance suggest a strong positive sentiment, likely leading to a stock price increase over the next two weeks.
Zscaler, Inc. (ZS) Presents at Barclays 23rd Annual Global Technology Conference Transcript
Neutral12-11
Zscaler, Inc. (ZS) Presents at UBS Global Technology and AI Conference 2025 Transcript
Neutral12-2
Zscaler, Inc. (ZS) Q1 2026 Earnings Call Transcript
Positive11-26
The earnings call presents a positive outlook with strong revenue growth driven by strategic pillars like Zero Trust and AI security. Despite a slight decline in gross margin, the company maintains efficient cost management and strong cash flow margins. Analyst questions highlight strong demand for products, significant growth potential, and a stable competitive landscape. The Q&A section reveals positive sentiment towards management's strategic direction, especially in Zero Trust areas. Although Red Canary's contribution is minimal, its integration is progressing well. Overall, the company's strategic initiatives and financial health suggest a positive stock price movement.
ZS Slides
ZS Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
