25.9%
Revenue Growth
ZS achieved a 25.9% increase in revenue year-over-year, driven by strong demand for its cybersecurity solutions.
Source: Source: 10-Q Income Statement
AI Takeaway
ZS reported a significant revenue increase in Q2 FY2026, but faced widening net losses due to rising costs and R&D expenses.
Revenue
$815.75M
++25.91% YoY
EPS (Basic)
$-0.21
-320.00% YoY
Gross Margin
76.6%
-0.53% YoY
Operating Income
$-51.77M
-28.98% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
ZS achieved a 25.9% increase in revenue year-over-year, driven by strong demand for its cybersecurity solutions.
Source: Source: 10-Q Income Statement
Research and development expenses rose by 34.1%, reflecting the company's investment in innovation and product development.
Source: Source: 10-Q Income Statement
Operating income declined by 29.0% year-over-year, indicating challenges in managing operational costs.
Source: Source: 10-Q Income Statement
The significant increase in R&D expenses could impact profitability if new products do not generate expected returns.
Source: Source: 10-Q Income Statement
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Upgrade to unlockReported EPS of $1.01 versus the $0.92 analyst consensus — a +9.3% beat for Q2 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $815.75M | $647.9M | +25.91% |
Cost of Revenue | $191.26M | $148.5M | +28.80% |
Gross Profit | $624.49M | $499.4M | +25.05% |
Operating Income | $-51.77M | $-40.14M | -28.98% |
Net Income | $-34.31M | $-7.72M | -344.23% |
EPS (Basic) | $-0.21 | $-0.05 | -320.00% |
EPS (Diluted) | $-0.21 | $-0.05 | -320.00% |
R&D Expense | $229.14M | $170.86M | +34.11% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $6.75B | $5.01B | +34.92% |
Current Assets | $4.45B | $3.67B | +21.43% |
Total Liabilities | $4.56B | $3.4B | +34.11% |
Current Liabilities | $2.34B | $3.05B | -23.22% |
Stockholders' Equity | $2.2B | $1.61B | +36.62% |
Cash & Equivalents | $1.2B | $1.76B | -31.60% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $652.35M | $510.77M | +27.72% |
Investing Cash FlowYTD | $-1.86B | $-201.14M | -826.27% |
Financing Cash FlowYTD | $24.5M | $25.8M | -5.04% |
D&AYTD | $67.59M | $45.91M | +47.23% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 76.6% | 77.1% | -0.53% |
Operating Margin | -6.3% | -6.2% | -0.15% |
Net Margin | -4.2% | — | — |
ROE | -1.6% | — | — |
ROA | -0.5% | — | — |
Current Ratio | $1.901 | — | — |
Debt to Equity | $2.076 | — | — |
ZS did not beat earnings estimates, as it reported a net loss of $34.31M, significantly wider than the previous year.
Key takeaways include a 25.9% increase in revenue, a significant rise in R&D expenses, and a widening net loss of $34.31M.
ZS's revenue grew by 25.9% year-over-year to $815.75M, driven by strong demand for its cybersecurity solutions.
ZS highlighted risks such as rising R&D costs, negative cash flow from investing activities, and declining cash reserves.
ZS's financial health shows strong revenue growth but is challenged by increased losses and declining cash reserves.