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Zscaler ZS Net margin

Net margin at other companies

Cisco Systems, Inc. logo
Cisco Systems, Inc.CSCO
19.7%+2.1pp
Fortinet logo
FortinetFTNT
27.5%-3.1pp
Cloudflare, Inc. logo
Cloudflare, Inc.NET
-3.7%-0.6pp
CrowdStrike Holdings, Inc. logo
CrowdStrike Holdings, Inc.CRWD
-6.7%-9.6pp
Broadcom Inc. logo
Broadcom Inc.AVGO
38.8%+16.2pp
Akamai Technologies logo
Akamai TechnologiesAKAM
10.2%-1.1pp

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$20.11B-35.4%
Enterprise value$20.86B-31.5%
P/S6.3×-5.9×

Profitability

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Gross margin76.7%-0.7pp
Operating margin-4.7%-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 official record: Zscaler’s 10-Q, filed May 26, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Zscaler's net margin?
Zscaler (ZS) reported net margin of -2.4% in Q1 2026.
How has Zscaler's net margin changed year-over-year?
Zscaler's net margin decreased by 60.2% year-over-year, from -1.5% to -2.4%.
What is the long-term trend for Zscaler's net margin?
Over 4 years (2021 to 2025), Zscaler's net margin has grown at a -56.3% compound annual growth rate (CAGR), from -144.8% to -5.3%.
What does net margin mean?
The share of every sales dollar that becomes bottom-line profit.
How do you interpret net margin?
Higher is better, but net margin mixes operating performance with financing and tax effects and one-off items — read it alongside operating margin to separate the operating story from the rest.
How does net margin compare across companies?
Comparable across peers but sensitive to leverage and tax structure; two operationally identical firms can show different net margins purely from financing.