ZS Zscaler, Inc.
Price Chart
Executive Summary
Zscaler reported Q3 FY2026 results with revenue of $850.5M (+25% YoY), slightly below the $877.6M consensus, and non-GAAP EPS of $1.08, marginally missing the $1.09 estimate. The company raised full-year FY2026 guidance for revenue, non-GAAP operating income, and non-GAAP EPS, but lowered its free cash flow margin outlook to ~22.8-23.3% from prior ~26.5-27%. The beat on guidance was partially offset by the FCF margin cut and a slight EPS miss, resulting in a mixed read-through for the stock.
Key Financial Metrics
Actionable Insight
The slight revenue and EPS miss combined with a meaningful FCF margin guidance cut may pressure the stock near-term, but the raised full-year revenue and EPS guidance and record non-GAAP operating margin provide a positive counterbalance. Monitor the Q4 earnings call for commentary on the FCF margin trajectory and the Symmetry Systems acquisition timeline.
Key Facts
- Q3 FY2026 revenue: $850.5M (+25% YoY), vs consensus $877.6M (miss of ~3.1%)
- Non-GAAP EPS: $1.08, vs consensus $1.09 (miss of ~0.9%)
- GAAP net loss per share: $(0.09), vs $(0.03) in prior year quarter
- ARR grew 25% YoY to $3.525B; net new ARR of $166M; organic ARR growth 21% ex-Red Canary
- Non-GAAP operating margin reached an all-time high of 23% (vs 22% a year ago)
- Operating cash flow: $198.0M (23% of revenue), down from $211.1M (31% of revenue) a year ago
- Free cash flow: $136.0M (16% of revenue), up 14% YoY from $119.5M
- Full-year FY2026 revenue guidance raised to ~$3.3295B-$3.3325B (from $3.309B-$3.322B)
- Full-year FY2026 non-GAAP EPS guidance raised to $4.10-$4.11 (from $3.99-$4.02)
- Full-year FY2026 FCF margin guidance lowered to ~22.8-23.3% (from ~26.5-27%)
- Q4 FY2026 revenue guidance: $875M-$878M, growth of ~22%
- Q4 FY2026 non-GAAP EPS guidance: $1.08-$1.09
- Deferred revenue grew 25% YoY to $2.477B
- Announced intent to acquire Symmetry Systems (terms undisclosed)
Financial Impact
Revenue miss of ~$27M vs consensus; EPS miss of $0.01; guidance raised on revenue and EPS but FCF margin cut by ~4pp
Risk Factors
- Free cash flow margin guidance cut from ~26.5-27% to ~22.8-23.3% signals higher capex spend
- Revenue growth decelerating to ~22% in Q4 guidance vs 25% in Q3
- GAAP net loss widening to $13.9M from $4.1M a year ago
- Integration risk from multiple acquisitions (Red Canary, SquareX, Symmetry Systems)
Market Snapshot
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001713683-26-000095 |
| Document: zs-20260526.htm | 0001713683-26-000095 |
| Document: 0001713683-26-000095-index-headers.html | 0001713683-26-000095 |
| Document: 0001713683-26-000095-index.html | 0001713683-26-000095 |
| Document: 0001713683-26-000095.txt | 0001713683-26-000095 |
| 8-K Data (Synthetic) | 0001713683-26-000095 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
|
Jun 9, 2026
3d ago
|
Press Release
| $125.20 awaiting T+5 | awaiting T+5 | — | $129.52 (+3.45%) |
|
Jun 8, 2026
4d ago
|
ANALYST-DOWNGRADE
| $138.11 awaiting T+5 | awaiting T+5 | — | $129.52 (+6.22%) |
|
Jun 1, 2026
11d ago
|
ANALYST-UPGRADE
| $155.62 $130.78 | ▼ −15.96% | ▼ −13.21% | $129.52 (−16.77%) |
|
May 31, 2026
12d ago
|
ANALYST-UPGRADE
| $232.67 $229.12 | ▼ −1.53% | ▼ −2.86% | $129.52 (−44.33%) |
|
May 27, 2026
16d ago
|
ANALYST-DOWNGRADE
| $126.17 $134.28 | ▼ −6.43% | ▼ −5.96% | $129.52 (−2.65%) |
|
May 26, 2026
17d ago
|
8-K
| $126.17 $134.28 | ▲ +6.43% | ▲ +5.96% | $129.52 (+2.65%) |
|
May 22, 2026
21d ago
|
ANALYST-DOWNGRADE
| $142.00 $134.27 | ▲ +5.44% | ▲ +5.50% | $129.52 (+8.79%) |
|
May 21, 2026
22d ago
|
Press Release
| $170.38 $139.62 | ▼ −18.05% | ▼ −19.90% | $129.52 (−23.98%) |
|
May 19, 2026
24d ago
|
Press Release
| $174.65 $126.17 | ▼ −27.76% | ▼ −30.05% | $129.52 (−25.84%) |
|
May 18, 2026
25d ago
|
ANALYST-UPGRADE
| $174.21 $183.97 | ▲ +5.60% | ▲ +3.98% | $129.52 (−25.65%) |
US Market Status
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