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Zscaler ZS Gross margin

Gross margin at other companies

Cisco Systems, Inc. logo
Cisco Systems, Inc.CSCO
64.3%-0.9pp
Fortinet logo
FortinetFTNT
80.2%-1.1pp
Palo Alto Networks, Inc. logo
Palo Alto Networks, Inc.PANW
71.9%-1.6pp
Cloudflare, Inc. logo
Cloudflare, Inc.NET
73.3%-3.6pp
CrowdStrike Holdings, Inc. logo
CrowdStrike Holdings, Inc.CRWD
75%+0.5pp
Broadcom Inc. logo
Broadcom Inc.AVGO
68.3%+2.2pp

Other financials

Income statement

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Revenue$850.5M+25.4%
Gross profit$657.8M+26.0%
Operating income-$29.6M-16.6%
Net income-$13.9M-237%
EPS (diluted)-$0.09-200%

Balance sheet

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Cash & equivalents$982.1M-50.7%
Total debt$1.7B+40.9%
Total equity$2.4B+31.1%
Total assets$7.1B+32.9%

Cash flow

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Operating cash flow$198.0M-6.2%
CapEx$42.4M-41.2%
Free cash flow$155.6M+12.0%

Valuation

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Market cap$24.45B-45.1%
Enterprise value$25.2B-42.6%
P/S7.7×-8.9×

Profitability

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Operating margin-4.7%-0.1pp
Net margin-2.4%+3.7pp
FCF margin30.4%+0.1pp

Returns & leverage

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Return on equity-3.7%+2.3pp
Debt / equity0.7×+0.1×
Current ratio1.9×+0.6×

Where this comes from

Calculated from Zscaler’s reported figures.

Based on trailing twelve months.

The source filing: Zscaler’s 10-Q, filed May 26, 2026. Open the filing →

Filed
May 26, 2026, 4:09 PM EDT
Fiscal quarter
Q3 FY2026
Calendar quarter
Q2 2026
Accession
0001713683-26-000096

FAQ

What is Zscaler's gross margin?
Zscaler (ZS) reported gross margin of 76.7% in Q1 2026.
How has Zscaler's gross margin changed year-over-year?
Zscaler's gross margin decreased by 0.9% year-over-year, from 77.4% to 76.7%.
What is the long-term trend for Zscaler's gross margin?
Over 4 years (2021 to 2025), Zscaler's gross margin has grown at a -0.3% compound annual growth rate (CAGR), from 77.7% to 76.9%.
What does gross margin mean?
Gross profit (revenue minus cost of revenue) as a percentage of revenue, on a trailing-twelve-month basis. Measures how much of each sales dollar survives the direct cost of producing the goods or services sold.

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