Zscaler, Inc.
Zscaler, Inc. Q1 FY26 Results — Earnings Call Analysis
Q1 FY26 earnings call: what management guided on revenue, margins and order book.
What the Q1 FY26 call signalled
3 of 4 strong
The short version
- Strong ARR growth expected with fiscal 2026 ARR guidance of $3.73-$3.745 billion, a 24% YoY increase. - Full-year fiscal 2026 revenue expected between $3.09 billion and $3.322 billion, reflecting 23.8% to 24.3% year-over-year growth.
From Zscaler, Inc.'s Q1 FY26 earnings-call transcript · updated 29 May 2026.
Revenue & Sales Performance
- Strong ARR growth expected with fiscal 2026 ARR guidance of $3.73-$3.745 billion, a 24% YoY increase.
- Net new ARR growth excluding Red Canary projected at approximately 9.5% for fiscal 2026.
- Red Canary FY26 ARR expected at ~$130 million, up from prior $95 million guidance, with increasing net new ARR in H2.
- Continued acceleration in net new ARR growth seen (10% in H1 FY26 vs 1% last year).
- Z-Flex deals driving record pipeline conversion, large deal wins, and double-digit sales productivity growth.
- Expanded adoption of Zero Trust Everywhere having 2-3x ARR uplift per customer, with 550 customers now vs 130 a year ago.
- Non-seat-based metered usage solutions (e.g., AI agents) growing rapidly, representing over 25% of new Annual Contract Value (ACV).
2 more points from Zscaler, Inc.'s call on revenue
Pro opens every point from 15K+ earnings calls
Profitability & Margins
See what Zscaler, Inc. said on profitability & margins — free account, 30 seconds.
Capital Expenditure Plans
- Current CapEx was $18 million in Q2, representing 2% of revenue.
- Free cash flow margin in Q2 was 20.7%, down from 22.1% last year, due to cash collection timing.
- CapEx is expected to stay in the mid-single digits as a percentage of revenue for fiscal 2026.
- Recent increases in memory, storage, and processor prices could impact future equipment purchases for data centers and Zero Trust Branch appliances.
2 more points from Zscaler, Inc.'s call on capex
Pro opens every point from 15K+ earnings calls
Fundraising & Capital Structure
See what Zscaler, Inc. said on fundraising & capital structure — free account, 30 seconds.
Order Book & Pipeline
- Remaining Performance Obligation (RPO) stands at approximately $6.1 billion, growing about 31% year-over-year.
- Approximately 47% of the RPO is classified as current RPO.
- In Q2, Z-Flex generated over $290 million in Total Contract Value (TCV), up more than 65% quarter-over-quarter.
- Since launching a year ago, Z-Flex deals have delivered about $650 million in TCV with an average 4-year term, reflecting strong long-term customer commitments.
2 more points from Zscaler, Inc.'s call on order book
Pro opens every point from 15K+ earnings calls
Continue your research
Others in Software this season
- Guidewire Software, Inc. (Q1 FY26)
Guidewire Software, Inc. Q1 FY26 quarterly results analysis. ARR outlook for the full year 2026 raised to $1.229 billion to $1.237 billion, reflecting 18%-19% y
- Nutanix, Inc. (Q1 FY26)
Nutanix, Inc. Q1 FY26 quarterly results analysis. Bookings expectations for fiscal year 2026 are higher than previously guided, indicating strong and growing de
- Rubrik, Inc. (Q1 FY26)
Rubrik, Inc. Q1 FY26 quarterly results analysis. Fiscal 2027 guidance projects subscription ARR growth of approximately 25% to 26%, reaching $1.829 billion to $
- Autodesk, Inc. (Q1 FY26)
Autodesk, Inc. Q1 FY26 quarterly results analysis. Autodesk expects continued strong underlying momentum in fiscal ’27, driven by broad demand and strong execut
Arthneeti Pro · Annual
Zscaler, Inc. and 15K+ more earnings calls,
for less than your morning chai
a day
Every earnings call, ranking and concall Q&A across all four results seasons.
Secure Razorpay payment · instant access
Frequently Asked Questions
What were Zscaler, Inc. Q1 FY26 results?
- Strong ARR growth expected with fiscal 2026 ARR guidance of $3.73-$3.745 billion, a 24% YoY increase. - Full-year fiscal 2026 revenue expected between $3.09 billion and $3.322 billion, reflecting 23.8% to 24.3% year-over-year growth.
What is Zscaler, Inc. share price analysis?
Zscaler, Inc. currently shows a moderate growth signal based on ranking data. The stock trades at a P/E of 40.2 with a market cap of $21,029. Investors should review the full earnings analysis for detailed insights.
Is Zscaler, Inc. planning capital expenditure?
- Current CapEx was $18 million in Q2, representing 2% of revenue.
Keep Zscaler, Inc. on your radar — track it to get its next earnings analysis in your feed.
This analysis is AI-generated based on publicly available earnings data and the company's earnings call transcript. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.