How did Zscaler perform in its first quarter of fiscal 2026?

Revenue grew 26% year-over-year to $788.1 million, and ARR grew 26% to $3,204 million. GAAP net loss was $11.6 million, compared with $12.1 million a year earlier, while non-GAAP net income rose to $159.5 million from $124.3 million.

What acquisitions did Zscaler complete during the quarter, and what did they cost?

Zscaler closed its acquisitions of Red Canary Inc. and SPLXAI Inc. during the first quarter for an aggregate purchase price consideration of $692.0 million. The filing notes that SPLX extends the platform with AI asset discovery and automated red teaming capabilities.

What guidance did Zscaler provide for fiscal 2026?

For the second quarter, the company expects revenue of $797 million to $799 million and non-GAAP income from operations of $172 million to $174 million. For the full year, it expects ARR of $3.698 billion to $3.718 billion, revenue of approximately $3.282 billion to $3.301 billion, and non-GAAP net income per share of $3.78 to $3.82.

Why did the company's non-GAAP results change in presentation?

Effective August 1, 2025, Zscaler adopted a long-term projected non-GAAP tax rate of 21%, reduced from 23%, to align with the enactment of the One Big Beautiful Bill Act. The revised rate applies prospectively and will be reassessed regularly.

How did the company's cash position change?

Cash, cash equivalents and short-term investments totaled $3,321.3 million at October 31, 2025, a decrease of $251.1 million from July 31, 2025. The filing attributes the decline in part to the $692.0 million of acquisition consideration paid during the quarter, while operating cash flow of $448.3 million partly offset it.

ZS 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed November 25, 2025. Cited figures are marked; the original filing is the authoritative source.

Zscaler, Inc. (Nasdaq: ZS) reported financial results for its first fiscal quarter of 2026, ended October 31, 2025, in a press release furnished as Exhibit 99.1 to this Form 8-K dated November 25, 2025.

Revenue rose 26% year-over-year to $788.1 million^a, Annual Recurring Revenue grew 26% to $3,204 million, and deferred revenue grew 32% to $2,351.3 million. The company posted a GAAP net loss of $11.6 million, compared with $12.1 million a year earlier, while non-GAAP net income rose to $159.5 million from $124.3 million. Cash provided by operations was $448.3 million and free cash flow was $413.3 million, or 52% of revenue.

During the quarter Zscaler closed its acquisitions of Red Canary Inc. and SPLXAI Inc. for an aggregate purchase price of $692.0 million^b. Cash, cash equivalents and short-term investments totaled $3,321.3 million at October 31, 2025, a decrease of $251.1 million from July 31, 2025. Goodwill rose to $994.5 million from $417.7 million, and acquired intangible assets rose to $215.3 million from $47.3 million, reflecting the acquisitions.

For the second quarter of fiscal 2026, the company guided to revenue of $797 million to $799 million^c and non-GAAP income from operations of $172 million to $174 million. For full-year fiscal 2026, it expects ARR of $3.698 billion to $3.718 billion, revenue of approximately $3.282 billion to $3.301 billion, and non-GAAP income from operations of $732 million to $740 million. The company also adopted a long-term non-GAAP tax rate of 21%, down from 23%, effective August 1, 2025.

02—Key points

Key Highlights

Q1 FY2026 revenue of $788.1 million, up 26% year-over-year from $627.955 million in the prior-year quarter
ARR of $3,204 million, up 26% year-over-year; deferred revenue of $2,351.3 million, up 32% year-over-year
GAAP net loss narrowed to $11.6 million from $12.1 million; non-GAAP net income increased to $159.5 million from $124.3 million
Non-GAAP operating margin of 22% versus 21% a year earlier; GAAP loss from operations was $36.4 million
Free cash flow of $413.3 million, or 52% of revenue, versus $291.9 million, or 46%, in the prior-year quarter
Closed Red Canary and SPLX acquisitions for an aggregate $692.0 million; goodwill increased to $994.5 million
FY2026 guidance: revenue of approximately $3.282 billion to $3.301 billion and non-GAAP EPS of $3.78 to $3.82; non-GAAP tax rate lowered to 21% from 23%

03—Questions

Frequently Asked Questions

How did Zscaler perform in its first quarter of fiscal 2026?
Revenue grew 26% year-over-year to $788.1 million, and ARR grew 26% to $3,204 million. GAAP net loss was $11.6 million, compared with $12.1 million a year earlier, while non-GAAP net income rose to $159.5 million from $124.3 million.
What acquisitions did Zscaler complete during the quarter, and what did they cost?
Zscaler closed its acquisitions of Red Canary Inc. and SPLXAI Inc. during the first quarter for an aggregate purchase price consideration of $692.0 million. The filing notes that SPLX extends the platform with AI asset discovery and automated red teaming capabilities.
What guidance did Zscaler provide for fiscal 2026?
For the second quarter, the company expects revenue of $797 million to $799 million and non-GAAP income from operations of $172 million to $174 million. For the full year, it expects ARR of $3.698 billion to $3.718 billion, revenue of approximately $3.282 billion to $3.301 billion, and non-GAAP net income per share of $3.78 to $3.82.
Why did the company's non-GAAP results change in presentation?
Effective August 1, 2025, Zscaler adopted a long-term projected non-GAAP tax rate of 21%, reduced from 23%, to align with the enactment of the One Big Beautiful Bill Act. The revised rate applies prospectively and will be reassessed regularly.
How did the company's cash position change?
Cash, cash equivalents and short-term investments totaled $3,321.3 million at October 31, 2025, a decrease of $251.1 million from July 31, 2025. The filing attributes the decline in part to the $692.0 million of acquisition consideration paid during the quarter, while operating cash flow of $448.3 million partly offset it.

04—Continue

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