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Zscaler 8-K Report, Financial Results (May 26, 2026)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed May 26, 2026
Period End
May 26, 2026
Security
ZS
In the record · 2018–202610-K910-Q258-K62

ZS filed 9 annual reports (10-K), 25 quarterly reports (10-Q) and 62 current reports (8-K) between 2018 and 2026.

  1. Leadership change8-K · Oct ’18Oct ’18
  2. Leadership change8-K · Sep ’20Sep ’20
  3. Restructuring8-K · Mar ’23Mar ’23
  4. Material agreement8-K · Jul ’25Jul ’25

01—Abstract

Summary

Summary of the 8-K filed May 26, 2026. Cited figures are marked; the original filing is the authoritative source.

Zscaler, Inc. reported third-quarter fiscal 2026 results for the quarter ended April 30, 2026.

Revenue grew 25% year-over-year to $850.5 milliona, and Annual Recurring Revenue (ARR) grew 25% to $3,525 million. Excluding the Red Canary acquisition, which contributed ARR of $127 million, ARR grew 21% to $3,398 million and net new ARR grew 14%. GAAP loss from operations was $29.6 million, compared to $25.4 million a year earlier, while non-GAAP income from operations was $195.8 million, or 23% of revenue.

GAAP net loss widened to $13.9 millionb from $4.1 million, and non-GAAP net income per diluted share was $1.08, compared to $0.84. Operating cash flow was $198.0 million, compared to $211.1 million, and free cash flow was $136.0 million, compared to $119.5 million. The company raised its full-year fiscal 2026 guidance for ARR, revenue, non-GAAP income from operations and non-GAAP net income per share.

Full-year ARR is now expected at $3.740 billion to $3.749 billionc, revenue at approximately $3.3295 billion to $3.3325 billion, and non-GAAP net income per share at $4.10 to $4.11. The free cash flow margin outlook was lowered to approximately 22.8% to 23.3% from 26.5% to 27%, which the company attributes to capital expenditures in the high single-digits as a percent of revenue. Effective August 1, 2025, the company adopted a long-term projected non-GAAP tax rate of 21%, down from 23%, applied prospectively.

This change affects the comparability of non-GAAP per-share results with prior periods. On the balance sheet, goodwill rose to $1,094.4 milliond from $417.7 million at fiscal year-end 2025, and acquired intangible assets rose to $191.7 million from $47.3 million. Cash and cash equivalents fell to $982.1 million from $2,389.0 million, while short-term investments increased to $2,557.0 million from $1,183.4 million.

Nine-month payments for business acquisitions totaled $770.0 million. The filing also announces the intent to acquire Symmetry Systems and lists several partnerships and government certifications, including Provisional Authorization at Impact Level 5 for Zscaler Internet Access.

02—Key points

Key Highlights

  1. Revenue rose 25% year-over-year to $850.5 million in Q3 fiscal 2026, and ARR rose 25% to $3,525 million, including $127 million of ARR from Red Canary.
  2. Excluding Red Canary, ARR grew 21% to $3,398 million and net new ARR grew 14%; total net new ARR for the quarter was $166 million.
  3. GAAP loss from operations was $29.6 million (3% of revenue) versus $25.4 million a year ago, while non-GAAP operating margin reached 23%, which the company describes as an all-time high.
  4. Non-GAAP net income per diluted share was $1.08 versus $0.84 a year ago. The year-ago figure reflects the prior 23% non-GAAP tax rate, and the 21% rate applies prospectively.
  5. Free cash flow was $136.0 million versus $119.5 million, but operating cash flow declined to $198.0 million from $211.1 million.
  6. Full-year guidance raised for ARR ($3.740B to $3.749B), revenue (about $3.3295B to $3.3325B), non-GAAP operating income ($755M to $757M) and non-GAAP EPS ($4.10 to $4.11), while the free cash flow margin outlook was lowered to about 22.8% to 23.3% from 26.5% to 27%.
  7. Goodwill increased to $1,094.4 million from $417.7 million, and cash and cash equivalents fell to $982.1 million from $2,389.0 million, with the company announcing the intent to acquire Symmetry Systems.

03—Questions

Frequently Asked Questions

  1. How did Zscaler perform in its third quarter of fiscal 2026?

    Revenue grew 25% year-over-year to $850.5 million, and ARR grew 25% to $3,525 million. GAAP net loss was $13.9 million, compared to $4.1 million a year earlier, and non-GAAP net income was $177.9 million, compared to $136.8 million.

  2. How much of the ARR growth came from the Red Canary acquisition?

    Red Canary contributed ARR of $127 million. Excluding that contribution, ARR grew 21% to $3,398 million, and net new ARR grew 14%.

  3. What changed in the company's full-year fiscal 2026 outlook?

    Guidance was raised for ARR to $3.740 billion to $3.749 billion, revenue to approximately $3.3295 billion to $3.3325 billion, non-GAAP income from operations to $755 million to $757 million, and non-GAAP net income per share to $4.10 to $4.11. The free cash flow margin outlook was lowered to approximately 22.8% to 23.3% from 26.5% to 27%, reflecting capex in the high single-digits as a percent of revenue.

  4. Why does the non-GAAP tax rate change matter for comparisons?

    Effective August 1, 2025, the company adopted a long-term projected non-GAAP tax rate of 21%, reduced from 23%, in line with the One Big Beautiful Bill Act. The change applies prospectively, and the year-ago non-GAAP figures in the filing reflect the 23% rate, so per-share comparisons are affected.

  5. What did the company say about its recent acquisitions and cash position?

    The company announced its intent to acquire Symmetry Systems. Goodwill rose to $1,094.4 million from $417.7 million at July 31, 2025, and nine-month payments for business acquisitions totaled $770.0 million. Cash and cash equivalents declined to $982.1 million from $2,389.0 million, while short-term investments rose to $2,557.0 million.

04—Continue

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